Goldman Sachs, Citi and other banks commit about $270M to the Project Faro stablecoin venture

Banks including Goldman Sachs, Citigroup, Santander and Deutsche Bank have committed about $270 million to Project Faro, the joint stablecoin venture first revealed in September, Bloomberg reported. Wells Fargo, Fidelity, MUFG and Standard Bank are also named among the participants.

The money is meant to cover five years of operating costs for the new joint company, which is expected to be incorporated in the US. It is not reserve backing for the tokens.

Project Faro plans a dollar-denominated stablecoin and tokens pegged to other G7 currencies, with a euro token given priority. How much each institution contributes was not disclosed, and the named banks did not comment.

The read: a five-year operating budget points to a long build by a shared bank issuer, not a pilot.