Goldman, Citi join $270 million push for bank-backed stablecoin: Report

Goldman Sachs and Citigroup have joined a $270 million funding round for a bank-backed stablecoin venture, according to a report, marking one of the largest capital raises tied to tokenized fiat infrastructure. The investment signals growing willingness among major traditional lenders to back blockchain-based settlement rails rather than cede the payments space to crypto-native issuers. The venture aims to issue a stablecoin backed by bank reserves, positioning it as a regulated alternative to existing dollar tokens. The move matters because bank participation could accelerate institutional adoption of on-chain payments and pressure incumbents such as USDT and USDC on credibility and compliance. What to watch next: which banks and chains formally commit, the token's reserve and redemption structure, and whether regulators signal approval for bank-issued stablecoins.