Tether and Fasanara Capital have launched a private credit fund named StableFund, backed by $400 million from the two firms, with ambitions to raise up to $3 billion from institutional investors. The initiative will leverage Tether’s USDT stablecoin as a settlement infrastructure for short-duration, asset-backed lending to businesses and consumers through fintech platforms across more than 60 countries.
Fasanara Capital, a London-based asset manager with over $6 billion under management, will oversee investment operations, while Tether will focus on identifying financing opportunities and providing on- and offchain infrastructure. The fund’s structure aims to capitalise on Tether’s extensive network and liquidity, with USDT serving as a cornerstone for transactional efficiency in the lending process.
Tether, which operates with $187.8 billion in assets and a $4.11 billion reserve buffer as of June, reported a net operating profit of $1.5 billion in Q2 2023. The firm has previously invested in several ventures, including a $20 million stake in Argentine neobank Ualá and a $50 million funding round for AI sleep technology company Eight Sleep.
The StableFund’s strategy reflects growing institutional interest in alternative asset classes, with private credit increasingly viewed as a vehicle for diversification. By integrating blockchain-based settlement mechanisms, the fund seeks to address inefficiencies in traditional lending markets while expanding access to capital for underserved borrowers.
Written by Oliver Grant
Markets Desk
