SKN | Wall Street’s $270 Million Stablecoin Race: How Banks and Payment Giants Are Claiming the Onchain Dollar

Key Points:

• A consortium involving Goldman Sachs, Citigroup, Santander and Deutsche Bank is reportedly committing approximately $270 million to Project Faro, a proposed dollar-backed stablecoin venture targeting a 2027 launch.
• SoFiUSD has expanded across Polygon, Ethereum and Solana, while SoFi introduced a tokenized deposit product offering a reported 4.40% yield.
• Mastercard, Visa, Anchorage Digital and Circle are expanding stablecoin settlement infrastructure, intensifying competition across traditional finance and digital-asset markets.

The stablecoin market is entering a new phase as major financial institutions move beyond observing the cryptocurrency sector and begin competing directly for control of its dollar-based payment infrastructure. Banks, payment networks and established digital-asset companies are accelerating initiatives spanning token issuance, settlement, custody and cross-border transfers. With the U.S. GENIUS Act establishing a regulatory framework for payment stablecoins, the competition is increasingly focused on capturing institutional and commercial payment flows rather than serving cryptocurrency trading alone.

Project Faro Signals Wall Street’s Stablecoin Ambitions

One of the clearest indications of traditional finance’s growing commitment emerged with Project Faro, a proposed joint stablecoin venture reportedly involving Goldman Sachs, Citigroup, Santander and Deutsche Bank. The participating institutions are committing approximately $270 million to finance five years of operations for a U.S.-incorporated issuer targeting a 2027 launch.

The initiative reportedly involves a coalition of 21 financial institutions, expanding from an original group of 10. Its commercial objective is to challenge the dominance of Tether and Circle, which together control approximately 85% of a stablecoin market valued at roughly $290 billion, according to the source report.

The scale of the proposed commitment suggests that established banks increasingly view stablecoins as potential components of mainstream financial infrastructure. Rather than relying exclusively on existing issuers, participating institutions are seeking greater control over issuance, governance and settlement arrangements. However, Project Faro remains a planned venture, with its commercial launch targeted for 2027.

SoFi and Anchorage Expand Regulated Payment Infrastructure

While the banking consortium prepares its initiative, SoFi has already expanded its stablecoin operations. Its dollar-backed SoFiUSD has extended beyond Ethereum and Solana to the Polygon network, potentially increasing access to blockchain-based payment infrastructure for the bank’s more than 17 million members.

SoFi also introduced SoFi Earn, a tokenized deposit product offering a reported 4.40% yield that converts into SoFiUSD. The company has additionally moved its entire card program onto Mastercard’s network, connecting its banking operations with established payment infrastructure.

Meanwhile, federally chartered crypto bank Anchorage Digital is developing its role as a settlement infrastructure provider. Its tokens can now support transactions across Visa’s network, beginning with Western Union’s USDPT. Anchorage has also established a role in the U.S.-Mexico stablecoin corridor through custody services covering both sides of the remittance route.

Mastercard, Visa and Circle Intensify the Competition

Mastercard has expanded its stablecoin strategy through its Global Money Platform, developed with acquired stablecoin infrastructure firm BVNK. It has also introduced Stablecoin Security to screen transactions for fraud and Agent Pay for Machines, which enables AI agents to conduct stablecoin transactions.

Visa is expanding its stablecoin settlement program across multiple blockchain networks, reflecting growing interest in connecting digital assets with conventional payment systems. Meanwhile, Circle is extending USDC settlement into Latin American banking infrastructure, beginning with a pilot in Colombia and forming part of a broader expansion into emerging markets.

The regulatory catalyst is the GENIUS Act, signed into law in 2025. By establishing a federal framework for dollar-pegged payment tokens, the legislation has created a clearer pathway for regulated institutions to participate in the sector.

The next competitive phase will depend on adoption, regulatory implementation, transaction economics and the ability to integrate blockchain settlement into existing financial networks. For institutional investors, the central opportunity lies in the infrastructure supporting stablecoin issuance, custody and payments. As traditional banks enter a market historically dominated by crypto-native companies, the balance of influence across the onchain dollar economy could undergo a substantial transformation.