Global financial firms including Goldman Sachs and Citigroup have agreed to invest approximately $270 million in operating costs over the next five years in "Project Faro," a US-based joint venture for a dollar stablecoin.
According to Bloomberg, Santander, Deutsche Bank, Wells Fargo, Fidelity, MUFG, and Standard Bank are also participating in the investment. The joint venture, first unveiled in September, plans to establish a US entity and issue a stablecoin pegged to the value of the US dollar. Project Faro aims to go a step further by developing tokens each tied to the currencies of the Group of Seven (G7) nations, with a euro-based stablecoin as its priority.
Stablecoins are digital tokens designed to track the value of traditional financial assets, typically fiat currencies, and have been at the forefront of the financial industry's recent embrace of crypto assets. In June, more than 140 companies including Stripe, Visa, Mastercard, and BlackRock joined efforts to develop the "Open USD" stablecoin.
The banks participating in Project Faro did not immediately respond to requests for comment.
