Banks pledge about $270m to fund new US-based dollar stablecoin company

Key points

• Goldman Sachs, Citigroup, Banco Santander and Deutsche Bank are among the firms that have committed around $270 million to a joint stablecoin venture, according to Bloomberg.
• The money is meant to pay for five years of the new company's operations.
• The company will issue a stablecoin pegged to the dollar and is expected to be incorporated in the US, Bloomberg's sources said.
• crypto.news, summarising Bloomberg's report, said the venture is targeting a launch in early 2027.

What Bloomberg reported

Bloomberg reported on 10 November, citing people familiar with the matter who asked not to be named because the information is private, that a group of financial firms has committed around $270 million to a joint stablecoin venture. Goldman Sachs Group, Citigroup, Banco Santander and Deutsche Bank are among the participants.

The commitment is designed to carry the new company through its first five years of running costs. A group of 21 institutions set out plans for the company earlier this year, according to Bloomberg.

The company will be the issuer of a stablecoin denominated in US dollars. The people familiar with the matter said it is expected to be incorporated in the US.

Launch target and later plans

crypto.news reported that the venture is aiming to go live in early 2027. According to the outlet, the dollar coin would come first, and a euro stablecoin has been identified as a priority for expansion.

crypto.news also referred to a Wells Fargo release. In it, Wells Fargo said the planned company intends to operate globally, beginning with a dollar stablecoin.

What happens next

According to crypto.news, the venture is targeting a launch in early 2027, with the dollar stablecoin issued first and a euro version flagged as a priority for expansion. Bloomberg's sources said the issuing company is expected to be incorporated in the US.