World's largest banks plan to invest $270 million in their own stablecoins
A consortium of 21 financial institutions, including major U.S. and European banks, plans to invest approximately $270 million in developing its own stablecoins. The first will be a digital token pegged to the U.S. dollar, scheduled to launch in the first half of 2027.
According to Bloomberg, the funding will go toward Project Faro, an initiative first announced in September. The investment is expected to cover the new company's first five years of operations. The company plans to issue stablecoins backed by the currencies of the Group of Seven (G7) countries.
Following the launch of its dollar-pegged token, the consortium plans to introduce a stablecoin linked to the euro. The range of digital currencies is expected to expand further. According to sources familiar with the matter, the new company will most likely be incorporated in the U.S.
Project Faro's participants include Citigroup, Goldman Sachs, Banco Santander, Deutsche Bank, and BBVA. The banks intend to use their existing payment infrastructure and customer bases to distribute the digital currencies.
Banks pursue multiple stablecoin projects simultaneously
Project Faro is not the only attempt by traditional financial institutions to enter the stablecoin market. A competing initiative, Open USD, developed by a consortium involving Stripe, also brings together banks, payment companies, and technology providers. Visa is among its partners.
Some banks are participating in several initiatives at once. For example, Spain's BBVA is involved in Project Faro, Open USD, and the European consortium Qivalis. Dutch bank Rabobank is also participating in both Faro and Qivalis.
Qivalis now brings together 37 banks and focuses on issuing a regulated euro-pegged stablecoin. In October 2026, the consortium received authorization from the Dutch central bank to operate as an electronic money institution. The planned token is intended for payments, cross-border settlements, and transactions involving tokenized assets.
Participating in multiple consortiums allows banks to test different digital currency issuance models and maintain access to emerging payment technologies without committing to a single project.
Why do banks need their own stablecoins?
One of the banks' main goals is to make international payments faster and cheaper. Today, cross-border transfers often involve several intermediaries and depend on financial institutions' operating hours. Stablecoins enable round-the-clock transfers through blockchain networks, including on weekends. For example, a company could pay an overseas supplier within minutes, although converting the tokens into traditional currency may require additional time and fees.
However, banks also have commercial incentives. By issuing their own stablecoins, they could reduce their dependence on third-party issuers, gain greater control over payment infrastructure, and develop new fee-based services. Reserve assets backing the tokens could also generate additional income where permitted by law. Stablecoins can also be used to settle transactions involving tokenized stocks and bonds, creating new opportunities for banks in the digital asset market.
As a reminder, major global banks are planning to launch a U.S. dollar stablecoin in 2027.
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