Tether and Fasanara Capital announced the launch of StableFund, an evergreen private credit fund initially backed by $400 million from both firms. The vehicle aims to raise as much as $3 billion from institutional investors to provide short-duration, asset-backed lending to businesses and consumers via fintech platforms in more than 60 countries.
Fasanara, a London-based asset manager with over $6 billion under management, will manage investments while Tether sources USDT-linked financing opportunities and provides settlement infrastructure. The fund targets small and medium-sized enterprises and consumer lending, including trade receivables and supply chain finance. This initiative follows Tether’s recent expansion beyond its core stablecoin business, which reported $187.8 billion in assets and a $4.11 billion reserve buffer at the end of June.
The launch of StableFund represents a strategic integration of stablecoin infrastructure into traditional private credit markets. By utilizing USDT for settlement, Tether leverages its existing liquidity rails to facilitate cross-border lending, while Fasanara applies its established asset management expertise to mitigate operational risks associated with deploying capital through global fintech networks.
This development highlights the growing convergence between crypto-native entities and institutional finance. Tether’s move to deploy profits from its treasury holdings into structured credit products signals a broader trend of stablecoin issuers seeking yield-bearing assets beyond government securities. For market structure, this creates a new channel for institutional capital to access emerging market credit exposure, provided that regulatory compliance regarding on-chain and off-chain fund movements remains robust.
