Goldman Sachs, Citigroup, Santander and Deutsche Bank reportedly back a joint dollar stablecoin. It could change how your bank moves money.
A group of big banks has reportedly pledged about $270 million to build a shared digital dollar. Bloomberg News reported on Tuesday, Nov. 10, that Goldman Sachs, Citigroup, Santander and Deutsche Bank are among those putting up money. Bloomberg cited sources familiar with the matter. The banks declined to comment.
The money is meant to cover five years of running a new company. Plans for it were revealed earlier this year by a group of 21 banks. The company would issue a stablecoin, a digital token tied to the value of a currency, in this case the US dollar. Bloomberg's sources said it is expected to be set up in the United States.
Inside the group, the effort is called Project Faro. It is still searching for a CEO, and the company's final name is under discussion.
The funding moves along a plan to launch the stablecoin in the first half of 2027. The project also expects to issue tokens tied to other currencies someday, starting with the euro.
Bloomberg noted that this is one of several stablecoin teams to appear in recent years as banks try to compete with crypto-native companies. Visa, Mastercard and Stripe are among more than 100 companies backing a stablecoin issuer called Open Standard.
That group is asking who should keep the profit. PYMNTS framed it this way in September: if platforms, banks and payment companies bring the customers and the transaction volume, why should the issuer of the coin capture most of the yield?
Europe has its own version. Dozens of banks there launched Qivalis to issue a euro token. The Dutch central bank gave it permission last month to operate as an electronic money institution.
For now, nothing changes in your account. If the plan works, your bank could one day move money on crypto networks, which may make payments faster. It could also shift who earns money from those payments.
Big banks are funding their own dollar stablecoin for a 2027 launch, so watch whether your bank starts offering faster payments built on it.
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