Goldman, Citi Commit $270M to Their Own Stablecoin: Can Tether and Circle Hold On?

Goldman Sachs, Citigroup, Santander and Deutsche Bank have committed about $270 million to Project Faro, a joint bank stablecoin. The money funds five years of running a planned US issuer that targets a 2027 launch. Stablecoins are crypto tokens pegged to $1. Tether’s USDT and Circle’s USDC hold about 85% of a $290 billion market. Circle shares fell on two earlier reports of rivals. Why Circle Shares Drop on Bank Stablecoin News Circle earns most of its money from interest on the cash and Treasury bills backing USDC. Its reserves returned 3.5% in the third quarter, on $73.3 billion of average USDC in circulation, per its results . A bank-issued token holds the same kind of reserves.

BeCrypto News shows a short excerpt and links to the publisher. The full report belongs to BeInCrypto.