⚡ $270 million upfront, but no CEO yet
21 financial institutions are pooling their money to launch their own company and issue a dollar stablecoin. The funding is in place.
Bloomberg reported on November 10 that Goldman Sachs, Citi, Santander, Deutsche Bank and others have committed about $270 million to cover the new company’s operating costs for five years. The 1:1 reserve backing is not included. Internally code-named Faro, the project is registered in the U.S. and plans to launch a dollar coin in the first half of 2027, with a euro coin to follow.
Everything else is still up in the air. They’re still recruiting a CEO, the company name hasn’t been decided, they haven’t picked a blockchain, and they haven’t said how they’ll manage the reserves. A joint announcement in September named the 21 institutions and stated their goal, but didn’t mention a dollar amount. So the $270 million figure comes from just one source: people familiar with the matter cited by Bloomberg. Santander and Deutsche Bank declined to comment, while Goldman Sachs and Citi referred questions to the project.
The math: $270 million divided over five years is $54 million a year. Enough to fund a team in compliance and engineering. Not enough to win market share.
Another path is already on the table for the same pool of buyers. Mastercard signed an agreement to acquire BVNK on March 17 for up to $1.8 billion, including a $300 million earnout. The deal closed on August 3. Stripe bought Bridge last February for $1.1 billion. Circle made its move on September 8, acquiring Tazapay in an all-stock deal worth about $400 million. All three bought licenses, customers, and payment rails that were already up and running.
The banks’ route means negotiating reserves themselves, choosing a blockchain themselves, waiting for licenses, and hiring their own staff. The U.S. stablecoin licensing framework takes effect in January 2027. No one has said whether this company will be able to get a license by then.
And the market isn’t growing, either. By today’s DefiLlama figures, total dollar stablecoin circulation stands at $291.8 billion: $175.7 billion for USDT and $70.1 billion for USDC. Together, the two account for 84% of the market. Another group got moving back in June. More than 140 companies are working together on Open USD, including Stripe, Visa, Mastercard, and BlackRock. The project went live in October.
So that $270 million buys a five-year runway. They’ll have to fight for market share themselves. What’s truly valuable to these institutions is their deposit accounts and lists of corporate customers. A new coin is simply a tool to keep corporate payments on their own books.
BTC: $73,858 to $73,948, down less than 1% over 24 hours. ETH: $2,053 to $2,056, down 1.7%. Twenty-one institutions are putting up $270 million to fight for a foothold in stablecoins, and prices haven’t budged.
#中本聪国际社区Baoluo币商资本 #加密货币 #Stablecoin
21 financial institutions are pooling their money to launch their own company and issue a dollar stablecoin. The funding is in place.
Bloomberg reported on November 10 that Goldman Sachs, Citi, Santander, Deutsche Bank and others have committed about $270 million to cover the new company’s operating costs for five years. The 1:1 reserve backing is not included. Internally code-named Faro, the project is registered in the U.S. and plans to launch a dollar coin in the first half of 2027, with a euro coin to follow.
Everything else is still up in the air. They’re still recruiting a CEO, the company name hasn’t been decided, they haven’t picked a blockchain, and they haven’t said how they’ll manage the reserves. A joint announcement in September named the 21 institutions and stated their goal, but didn’t mention a dollar amount. So the $270 million figure comes from just one source: people familiar with the matter cited by Bloomberg. Santander and Deutsche Bank declined to comment, while Goldman Sachs and Citi referred questions to the project.
The math: $270 million divided over five years is $54 million a year. Enough to fund a team in compliance and engineering. Not enough to win market share.
Another path is already on the table for the same pool of buyers. Mastercard signed an agreement to acquire BVNK on March 17 for up to $1.8 billion, including a $300 million earnout. The deal closed on August 3. Stripe bought Bridge last February for $1.1 billion. Circle made its move on September 8, acquiring Tazapay in an all-stock deal worth about $400 million. All three bought licenses, customers, and payment rails that were already up and running.
The banks’ route means negotiating reserves themselves, choosing a blockchain themselves, waiting for licenses, and hiring their own staff. The U.S. stablecoin licensing framework takes effect in January 2027. No one has said whether this company will be able to get a license by then.
And the market isn’t growing, either. By today’s DefiLlama figures, total dollar stablecoin circulation stands at $291.8 billion: $175.7 billion for USDT and $70.1 billion for USDC. Together, the two account for 84% of the market. Another group got moving back in June. More than 140 companies are working together on Open USD, including Stripe, Visa, Mastercard, and BlackRock. The project went live in October.
So that $270 million buys a five-year runway. They’ll have to fight for market share themselves. What’s truly valuable to these institutions is their deposit accounts and lists of corporate customers. A new coin is simply a tool to keep corporate payments on their own books.
BTC: $73,858 to $73,948, down less than 1% over 24 hours. ETH: $2,053 to $2,056, down 1.7%. Twenty-one institutions are putting up $270 million to fight for a foothold in stablecoins, and prices haven’t budged.
#中本聪国际社区Baoluo币商资本 #加密货币 #Stablecoin
