Goldman, Citi Commit $270M to Their Own Stablecoin: Can Tether and Circle Hold On?
Goldman Sachs, Citigroup, Santander and Deutsche Bank have committed about $270 million to Project Faro, a joint bank stablecoin. The money funds five years of running a planned US issuer that targets a 2027 launch. Stablecoins are crypto tokens pegged to $1. Tether‘s USDT and Circle’s USDC hold about 85% of a $290 billion market. Circle shares fell on two earlier reports of rivals. Sponsored Sponsored Why Circle Shares Drop on Bank Stablecoin News Circle earns most of its money from interest on the cash and Treasury bills backing USDC. Its reserves returned 3.5% in the third quarter, on $73.3 billion of average USDC in circulation, per its results. A bank-issued token holds the same kind of reserves. Any balances that shift to it would earn that interest for the banks instead. Circle stock fell 5% on June 30 after Bloomberg reported on Open USD, a rival stablecoin backed by Visa, Stripe and more than 100 firms. It dropped another 4% on August 26, when the Wall Street Journal reported this bank groups plans. The stock fell again Tuesday amid reports of the $270 million commitment. Circle Stock (CRCL) Performance. Source: Yahoo Finance Circle Chief Executive Jeremy Allaire pointed to institutional demand in last weeks earnings release. Sponsored Sponsored “In Q3, we saw









