Tether and Fasanara Launch $400M Private Credit Fund Targeting $3B
Tether and Fasanara Capital have launched StableFund, a private credit fund backed by an initial $400 million from both firms. The evergreen fund aims to raise up to $3 billion from institutional investors and will use Tether’s USDT as the settlement infrastructure for short-duration, asset-backed lending to small and medium-sized businesses and consumers across more than 60 countries via fintech platforms.
Details of the StableFund
StableFund is an evergreen fund utilizing USDT as settlement infrastructure, focused on short-duration, asset-backed lending to small and medium enterprises as well as consumer lending. The lending includes trade receivables financing and supply chain finance through fintech platforms operating in over 60 countries.
Tether is responsible for sourcing USDT-linked financing opportunities and providing the infrastructure needed to move funds both on- and off-chain.
Fasanara, a London-based asset manager with over $6 billion under management, will manage the fund’s investments by deploying capital through its fintech lending network.
Roles and Strategic Moves of Tether and Fasanara
Tether, the issuer of USDT stablecoin, has generated approximately $1.5 billion in net operating profit in Q2, largely from its holdings in US Treasuries and repo agreements.
At the end of June, Tether reported assets totaling $187.8 billion and a reserve buffer of $4.11 billion.
Beyond its core stablecoin operations, Tether has been diversifying by investing $20 million in Argentine neobank Ualá, as well as stakes in Mercado Bitcoin and the Italian football club Juventus. In March, it also led a $50 million funding round for AI sleep tech company Eight Sleep.
Why it matters
This news is significant as it highlights the ambition of major crypto players like Tether to broaden their scope beyond the USDT stablecoin into traditional financial products. By launching the StableFund, a private credit fund utilizing fintech platforms and focusing on small and medium businesses as well as consumer lending, it underscores efforts to integrate crypto technology with the real economy across more than 60 countries. The potential to raise up to $3 billion from institutional investors could greatly expand the fund's reach and reshape business financing models in multiple regions.
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