Citi, Goldman and 19 Banks Commit $270 Million to Project Faro Stablecoin

Twenty-one financial institutions, including Citigroup, Goldman Sachs, Banco Santander, Deutsche Bank and BBVA, have committed an estimated $270 million to launch a U.S. dollar-backed stablecoin by the first half of 2027. The consortium will operate the initiative under the name Project Faro, according to a Bloomberg report.

The commitment marks one of the largest coordinated bank entries into stablecoin issuance to date. Project Faro plans to move beyond the dollar after launch: the consortium intends to issue stablecoins pegged to currencies from G7 nations, with a euro-backed token planned after the initial USD offering.

How will the $270 million be spent?

The funds will cover operational expenses for a newly established company over a five-year period. The financing is designed to sustain the venture through 2027 and support the debut of its first dollar-pegged token, Bloomberg reported.

The structure signals that the banks expect a long runway before the venture reaches self-sustaining scale. A five-year expense budget front-loaded into a single raise gives the operating company room to build issuance, reserve management and compliance infrastructure without returning to shareholders for additional capital in the near term.

What is known about the venture?

Details remain limited. Project Faro was first announced in September, but the consortium has kept its plans under wraps.

Insiders expect the enterprise to be situated in the United States, Bloomberg reported. A U.S. base would place the issuer directly under American dollar-transfer and securities oversight, an operational choice that aligns the venture with the jurisdiction of its first pegged currency.

The bank roster spans both sides of the Atlantic. Citigroup, Goldman Sachs, Banco Santander, Deutsche Bank and BBVA anchor a 21-member coalition whose full composition has not been disclosed.

Why are banks moving into issuance?

The consortium positions itself as a stablecoin issuer rather than a distribution partner — a distinction with operational consequences. Issuers manage reserves, redemption flows and attestations; distributors integrate third-party tokens into payment rails.

By controlling issuance, the banks retain the full economics of reserve income and float, while keeping settlement data and client relationships in-house. The move also gives the group a direct counter to existing dollar tokens such as those operated by non-bank issuers, which have accumulated significant transaction volume across trading and payments.

A G7-currency roadmap widens that ambition. A euro-backed coin, planned after the dollar launch, would put the consortium in competition with bank-backed euro tokens already live or in development in the European Union.

What comes next?

The operational company must now be stood up, staffed and capitalized before the first-half 2027 window. The near-term milestones to watch are the formal establishment of the U.S.-based entity, disclosure of the remaining consortium members, and any regulatory filings tied to the dollar token's reserve structure — all of which will test whether the consortium can meet its stated launch window.