Banks invest in a joint stablecoin initiative.
Several big banks working on their own stablecoin company including Citi, Goldman Sachs, Deutsche Bank, and others are allocating around $270M towards the venture.
A potential name for this is Project Faro according to Bloomberg.
A few months ago, plans for the 2027 international stablecoin were first revealed.
U.S. Dollar Stablecoin Banking
The initial announcement had a variety of institutions.
A number of big national banks, GSIBs, investment banks, and asset managers were originally linked to the initiative.
However, a joint stablecoin is not necessarily intended to compete with top privately issued stablecoins today – such as Tether’s USDT and Circle’s USDC.
Who owns the relationship with the customer, as well as the economics underlying it, are just as important parameters to assess for any large established institution.
It is more similar to Paxos and Open Standard, which recently revealed a proposed management fee for OUSD stablecoin.
Also, it is indicative that interest in stablecoins continues to be dominated by the U.S. Dollar.
There is some progress in other local-currency stablecoins internationally, including Qivalis Euro stablecoin and HSBC’s RedCoin stablecoin launch backed by HKD reserves.
