A consortium of global banks has committed about $270 million to Project Faro, a planned U.S.-incorporated company that aims to issue a dollar-denominated stablecoin and compete with established crypto issuers.

The funding is intended to cover five years of operating expenses and is separate from the reserves backing the tokens, which are expected to be maintained at a 1:1 ratio.

The effort grew from 10 banks exploring reserve-backed digital currencies in October 2025 to 21 institutions announcing plans for a dedicated company in September 2026, with a launch targeted for the first half of 2027.

Reported participants include Goldman Sachs, Citigroup, Banco Santander, Deutsche Bank, Bank of America, Wells Fargo, Fidelity Investments, UBS, Lloyds Banking Group and MUFG.

Project Faro intends to serve wholesale, institutional and retail users, and says it plans to comply with the U.S. GENIUS Act and, where applicable, the EU’s MiCA regime.

The GENIUS Act, signed in 2025, requires full backing with liquid reserves and monthly public disclosures; the OCC’s final rule implementing the act for entities under its jurisdiction takes effect Jan. 18, 2027.

Key details remain undisclosed, including the blockchain networks, reserve custody and redemption arrangements, and the company’s ownership structure; the plans are also subject to closing conditions.

The consortium has not announced regulatory approval, an issuing license, a reserve policy, a token ticker or supported blockchain networks.

Project Faro is searching for a chief executive, and its final company name has not been decided.

The banks’ customer networks, payment infrastructure and business relationships could help distribute the stablecoin, but turning that reach into adoption and competitive payment networks remains a challenge.

Overlapping memberships across initiatives suggest banks are exploring multiple stablecoin strategies while positioning themselves in the future of digital payments and settlement.

Project Faro is entering a wider competition that includes Open Standard, backed by more than 100 companies including Visa, Mastercard and Stripe, and Qivalis, a European banking initiative developing a euro-denominated stablecoin.