Tether pushes into private credit with $400 million fund with Fasanara
Tether, a leading stablecoin issuer, has launched a $400 million private credit fund called StableFund with asset manager Fasanara, aiming to raise up to $3 billion from institutional investors. The fund will deploy short-term, asset-backed loans to small and medium-sized businesses and consumers globally, with Tether providing USDT-linked financing and stablecoin infrastructure. This initiative marks Tether's continued expansion beyond its core stablecoin business into new investment sectors.
Why it matters
This move by a major crypto player into traditional finance sectors like private credit could bridge the gap between digital assets and real-world lending, potentially increasing the utility and adoption of stablecoins. It also signifies a diversification of Tether's business model, leveraging its substantial profits from USDT reserves.
The two firms are backing StableFund, an evergreen private credit vehicle that aims to raise as much as $3 billion from outside institutional investors, according to an announcement on Wednesday.
Fasanara, a London-based asset manager focused on private credit, will manage the fund and deploy the money into short-term, asset-backed loans through fintech platforms operating in more than 60 countries. The strategy targets financing for small and medium-sized businesses and consumers.
Tether will source USDT-linked financing opportunities and provide the stablecoin infrastructure for moving funds across borders, including converting between traditional currencies and digital dollars.
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