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.
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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.
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“In Q3, we saw continued proof that institutions are building and expanding on USDC.”
Is $270 Million Enough to Take On Tether and Circle？
The budget works out to about $54 million a year. Circle booked $865 million in revenue and reserve income in the third quarter.
JUST IN: Goldman Sachs, Citigroup, Banco Santander, and Deutsche Bank have committed roughly $270 million to fund a joint stablecoin venture.
Known internally as Project Faro, the funding is set to cover five years of operations for a US-incorporated entity backed by 21… pic.twitter.com/3AcqdhPG9B
— BeInCrypto (@beincrypto) November 10, 2026
Faro also has no product yet. The group is still searching for a chief executive, Bloomberg reported.
The groups advantage is reach. The 21 members include Bank of America, Wells Fargo, Fidelity, UBS and Lloyds, and the group plans to serve retail clients too.
The token is built to comply with the GENIUS Act, the US law setting rules for dollar stablecoins. It also targets Europes Markets in Crypto-Assets (MiCA) rules, with a euro version planned next.
Banks once lobbied against crypto firms issuing stablecoins that behaved like deposits. Now a bank-led group of 21 is paying to issue one, and the next markers are a chief executive, a company name and a launch date.