A group of 21 global banks has pooled $270 million to back Project Faro, a stablecoin initiative set to launch a US dollar-backed stablecoin in the first half of 2027. The project aims to issue stablecoins pegged to all G7 currencies, with a euro-backed coin following the dollar launch. The consortium includes major financial institutions like Citigroup, Goldman Sachs, Banco Santander, Deutsche Bank, and BBVA. The funding is expected to cover five years of operations for the new company, which is likely to be incorporated in the US.
The initiative faces competition from other bank-backed stablecoin projects, such as Stripe-led Open USD and the European consortium Qivalis. Some banks, including BBVA and Rabobank, are involved in multiple projects, allowing them to explore different approaches to digital currency issuance. Qivalis has already made regulatory progress, receiving authorization from the Dutch central bank in October 2026.
Despite growing institutional interest, Project Faro enters a market dominated by crypto-native issuers Tether’s USDT and Circle’s USDC, which together account for about 85% of the roughly $290 billion stablecoin market. USDT has a market capitalization of approximately $176.3 billion, while USDC stands at around $70.4 billion. The bank-backed venture may gain a competitive edge through existing customer relationships and payment networks, potentially introducing the stablecoin to new audiences.