21 banks just put about $270M behind one stablecoin, and it doesn't have a name yet.
The incumbents it's aiming at, $USDT and $USDC, already hold 84% of a $293B market.
Goldman Sachs and Citi are in the group, along with Santander and Deutsche Bank. Bloomberg reports the money covers five years of running costs for a new US-based issuer, working name Project Faro. It's still looking for a CEO. The target is the first half of 2027, with a dollar token first and a euro one next.
Quick maths: $270M over five years is $54M a year. If all 21 chip in evenly, that's about $2.6M per bank per year. Small change for these balance sheets, which tells you this is a test run, not an all-in bet.
Tether alone has about $176B in circulation. Circle has about $70B. The banks are starting from zero with a lot of distribution and a year of waiting.
Wall Street finally likes stablecoins. Its own.
#Stablecoins #TradFi
NFA. DYOR.
The incumbents it's aiming at, $USDT and $USDC, already hold 84% of a $293B market.
Goldman Sachs and Citi are in the group, along with Santander and Deutsche Bank. Bloomberg reports the money covers five years of running costs for a new US-based issuer, working name Project Faro. It's still looking for a CEO. The target is the first half of 2027, with a dollar token first and a euro one next.
Quick maths: $270M over five years is $54M a year. If all 21 chip in evenly, that's about $2.6M per bank per year. Small change for these balance sheets, which tells you this is a test run, not an all-in bet.
Tether alone has about $176B in circulation. Circle has about $70B. The banks are starting from zero with a lot of distribution and a year of waiting.
Wall Street finally likes stablecoins. Its own.
#Stablecoins #TradFi
NFA. DYOR.
