The latest progress of the U.S. dollar stable currency project jointly promoted by 21 international financial institutions including Goldman Sachs and Citigroup has been reported!

Following this year Announced the formation of a stablecoin company in SeptemberLater, Bloomberg reported on the 10th, citing people familiar with the matter, that participating institutions had committed to invest a total of approximately US$270 million (approximately NT$8.6 billion, roughly estimated at NT$1 to US$32) to cover the operating costs of the new company in the first five years. This project, internally codenamed "Project Faro", is reportedly preparing to establish a company in the United States and find a CEO. The goal is still to launch a U.S. dollar stable currency in the first half of 2027.

From the announcement of the alliance in September to the preparation of funds in November, “Project Faro” has taken another step forward

Block Guest reported on September 2 this yearreport, 21 financial institutions, including Bank of America, Citigroup, Goldman Sachs, Wells Fargo, Deutsche Bank, UBS and Mitsubishi UFJ, plan to jointly establish a stablecoin company in the second half of 2026. They will first issue U.S. dollar stablecoins and gradually expand to other G7 currencies.

According to the latest report from Bloomberg, the project is currently code-named "Project Faro", and relevant financial institutions are said to have committed approximately US$270 million to support the operations of the planned stable currency issuance company in the first five years. The funding equates to an annual operating budget of approximately $54 million, spread evenly over five years. However, actual expenses may still vary based on product development, regulatory filings and market expansion.

At present, participating institutions have not disclosed individual capital contributions, equity allocations or capital investment methods, and relevant arrangements have yet to be formally confirmed.

The new company plans to register in the United States and is still looking for a CEO

Compared with the original announcement in September, the latest news adds two new organizational preparation information. First, Project Faro plans to register a stable currency issuance company in the United States; second, participating institutions are reportedly looking for CEOs to establish a management team for subsequent operations and product launches.

According to reports, the specific nature of the funds invested by each bank has not yet been confirmed, nor has it been announced which blockchain the stablecoin will use. In addition, the new company’s official name, reserve management mechanism and regulatory application progress have not yet been fully disclosed.

The launch schedule in 2027 remains unchanged, with banks targeting cross-border payments and institutional settlements

According to a joint announcement by 21 institutions released by Wells Fargo in September, the alliance hopes to combine bank-level compliance management, corporate governance, customer network and risk control capabilities to establish digital payment assets that can serve the global market.

The alliance stated in its statement at the time that it hopes to create a set of: "safe, robust and reliable solutions." The products are expected to cover cross-border payments, fund transfers between financial institutions, digital asset settlement, and some retail payment purposes.

Currently, the US dollar stablecoin is still the first-stage target, and the plan to launch it in the first half of 2027 has not changed; in the long term, there are plans to add stablecoins denominated in other G7 currencies, of which the euro is listed as a priority project.

The alliance stated that the plan will comply with the U.S. GENIUS Act and the EU’s Cryptoasset Market Regulation Act (MiCA), as applicable. However, whether the product can be launched as scheduled still depends on company establishment, regulatory progress, technology development and other conditions.

USDT and USDC account for about 85% of the market. Can the banking alliance break the existing pattern?

According to DefiLlama data on November 11, the total market value of global stablecoins is approximately US$288.9 billion, of which the USDT issued by Tether is approximately US$175.7 billion, and the USDC issued by Circle is approximately US$70.1 billion. The two together account for approximately 85% of the overall market.

The main potential advantage of Project Faro is that participating institutions already have large corporate customers, international payment networks and compliance infrastructure.

If banks can introduce existing cross-border payment, corporate fund management and securities settlement needs into jointly issued U.S. dollar stablecoins, usage scenarios that are different from crypto-native stablecoins may gradually emerge.

However, USDT and USDC have established mature on-chain liquidity, trading platform integration and global wallet support. Bank brand and regulatory advantages do not guarantee that new products can quickly gain market share. Judging from the current progress, Project Faro has not yet announced its official product and issuance volume. It is still too early to replace USDT and USDC.

The latest funding commitment from Project Faro shows that the stablecoin concept originally proposed by 21 international financial institutions is advancing towards the company formation and product development stages. But for the stablecoin market, the $270 million operating budget is not the only indicator of future competitiveness.

What is more important next is whether the new company can be formally established, complete the establishment of a management team, obtain the required regulatory qualifications, and allow participating institutions to actually use its stablecoins for payment and settlement.

If Project Faro can be successfully launched in 2027, the market may usher in a US dollar stablecoin settlement network jointly established by a traditional bank alliance, forming a new competitive relationship with existing crypto-native issuers.

〈Goldman Sachs and Citigroup’s stablecoin plans have new progress! 21 institutions reportedly committed US$270 million, and “Project Faro” accelerated preparations〉This article was first published inBlock Guest》.