coindesk.com
Goldman Sachs, Citigroup and other financial services giants committed around $270 million to their joint stablecoin venture, Bloomberg reported on Tuesday.
The group, which includes Santander and Deutsche Bank, raised the funds to cover five years’ operational costs at the new company, which was revealed in September, according to the report, which cited people familiar with the matter.
Wells Fargo, Fidelity, MUFG and Standard Bank are also involved in the venture, known as Project Faro, which will issue a dollar-denominated stablecoin and is expected to be incorporated in the U.S.
Project Faro also aims to develop stablecoins pegged to other G7 currencies, with a euro-denominated token taking priority.
Stablecoins — digital tokens that track the value of a traditional financial asset, usually a fiat currency — are at the forefront of cryptocurrency adoption by financial institutions.
Over 140 companies joined forces to develop the Open USD stablecoin in June, including Stripe, Visa, Mastercard and BlackRock
The Faro-participating banks did not immediately respond to CoinDesk’s request for comment.
