Goldman, Citi Among Banks Committing $270M to Fund Joint Stablecoin Issuer for Five Years

Goldman Sachs, Citigroup, Banco Santander and Deutsche Bank have committed roughly $270 million to a joint stablecoin issuer, with the funding intended to cover five years of operations at the new venture, according to Bloomberg. The company will issue stablecoins backed by the participating banks, marking one of the largest coordinated efforts by major lenders to enter the tokenized payments space. The commitment signals that traditional banks are moving beyond pilots to build shared infrastructure for on-chain settlement, potentially challenging existing stablecoin leaders such as Tether and Circle. Details on which chains the issuer will target, the specific tokens it plans to launch and a timeline for going live remain to be disclosed.