A consortium of international financial institutions is set to invest around $270m in capital to launch an independent stablecoin company.
The financing commitment is designed to fund five years of business operations, Bloomberg reported citing sources familiar with the development.
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The consortium includes Goldman Sachs Group, Citigroup, Banco Santander, and Deutsche Bank among others.
The project is operating under the working title Project Faro, while a formal corporate identity is still under discussion.
It began last year with a smaller assembly of banks examining reserve-backed digital currencies on public blockchain networks.
The initiative expanded earlier this year to 21 participating institutions, adding firms such as Wells Fargo, Fidelity Investments, UBS, and Lloyds Banking Group.
At that time, a joint statement said: “The initiative will draw on the expertise of the participant institutions to offer a safe, robust and trusted solution that combines bank-grade compliance, strong governance, distribution and institutional risk management.
“The product will be utilised in a variety of use cases covering wholesale, institutional and retail markets where client benefits can be achieved by utilising a trusted form of digital money, including cross-border payments and digital asset settlements.”
The planned enterprise will serve as the issuer of a US dollar-denominated stablecoin. A search for a CEO is also underway.
The consortium aims to bring the dollar-pegged token to market in the first half of 2027, with subsequent plans to introduce stablecoins tied to other fiat currencies, beginning with the euro.
The joint venture reflects a broader push by commercial banks and payment companies to deploy digital tokens for cross-border transactions and 24/7 settlement.
Similar institutional initiatives include Qivalis, a euro-pegged project formed by European lenders, and Open Standard, a stablecoin entity backed by companies such as Visa, Mastercard, and Stripe.
