Wall Street banks team up to launch a stablecoin rivaling USDT and USDC

Twenty-one major financial institutions, led by Goldman Sachs and Citigroup alongside Santander and Deutsche Bank, have pledged roughly 270 million dollars to back a new stablecoin venture. The money is earmarked for five years of operating costs for the yet-to-be-named issuer. Known internally as Project Faro, the initiative targets institutional clients and cross-border settlements.

Dollar-pegged stablecoins now total 288 billion dollars in circulation, with Tether’s USDT and Circle’s USDC controlling 84–85 percent of that market. The banking group aims to compete by leveraging existing licenses and alignment with U.S. GENIUS Act and Europe’s MiCA rules. A dollar version is slated for the first half of 2027, followed by a euro token.

The U.S.-registered entity is still recruiting a CEO. Unlike crypto-native issuers, the consortium brings ready-made banking infrastructure and distribution channels that could appeal to institutions prioritizing regulatory compliance.

Based on information from cryptonews.net