Goldman Sachs, Citi Back $270M Stablecoin Venture to Challenge Tether, Circle

Goldman Sachs Group Inc. , Citigroup Inc. and other major financial institutions have reportedly committed $270 million to a joint stablecoin venture targeting a launch in the first half of 2027.The initiative, known as Project Faro, aims to challenge the dominance of Tether andCircle Internet Group Inc. in the roughly $290 billion stablecoin market.Bloomberg reported Tuesday the funding will cover five years of operations for a new U.S.-based stablecoin issuer.The venture includes 21 financial institutions, with Banco Santander, Deutsche Bank, Wells Fargo, Fidelity Investments, UBS and Lloyds Banking Group among its participants.The initiative follows growing interest among traditional banks in blockchain-based payments, particularly after the U.S. passed stablecoin legislation in 2025.Can Wall Street Challenge Tether And Circle?Tether and Circle Internet Group Inc. currently control almost 85% of the global stablecoin market. Their dominance presents a major challenge for new entrants despite growing institutional interest.Visa, Mastercard and Stripe are among more than 100 companies backing stablecoin issuer Open Standard, while European banks have established Qivalis to develop a euro-denominated stablecoin.Project Faro’s biggest advantage could be its participating banks’ existing customer networks and payment infrastructure.Preview Image: Shutterstock