According to Bloomberg, financial institutions including Goldman Sachs and Citi have committed approximately $270 million to cover five years of operating expenses for Project Faro, which aims to develop tokens pegged to the dollar and euro.
According to a Bloomberg report cited by CoinDesk, the joint venture announced in September is expected to be established in the United States. Alongside Goldman Sachs and Citi, the project also includes Santander, Deutsche Bank, Wells Fargo, Fidelity, MUFG, and Standard Bank.
Project Faro will focus on the dollar first, then the euro
The initiative’s first product will be a dollar-pegged stablecoin. Project Faro also aims to develop tokens pegged to other G7 currencies, with the euro taking priority among those products.
Unlike initiatives in which banks move their existing deposits onto the blockchain, Faro’s plan is to issue new stablecoins. The reported $270 million is allocated to cover the venture’s operating expenses, not to serve as token reserves.
Not investment advice.