Tether launches $400 million private credit fund with Fasanara Capital

Stablecoin issuer Tether has partnered with London-based asset manager Fasanara Capital to launch StableFund, a $400 million private credit fund. The evergreen vehicle aims to raise up to $3 billion from institutional investors to finance small businesses and consumers across 60 countries. Tether will provide the USDT-based settlement infrastructure to facilitate cross-border lending, marking a significant push into traditional finance amid a challenging and high-risk global private credit market.

StableFund private credit vehicle

• ▪StableFund is structured as an evergreen private credit vehicle targeting up to $3 billion in additional capital from third-party institutional investors
• ▪Tether and Fasanara Capital launched StableFund, a $400 million private credit fund aimed at financing small and medium-sized businesses and consumers

Tether diversification strategy

• ▪Tether has diversified its venture capital portfolio into commodities finance, gold mining, robotics, artificial intelligence, telecommunications, and Italian football club Juventus
• ▪Tether's launch of StableFund is part of a broader strategy to expand the utility and cross-border use of its dollar-linked stablecoin, USDT

Private credit market conditions

• ▪The traditional private credit market faces rising defaults, portfolio write-downs, and capital outflows as the value of troubled loans increases
• ▪Stablecoin-backed private credit represents a highly risky and niche segment within the broader private credit market

USDT cross-border lending infrastructure

• ▪Tether will provide the stablecoin settlement infrastructure for StableFund, enabling cross-border capital movement and conversion between digital tokens and sovereign currencies
• ▪StableFund plans to embed USDT into small and medium-sized enterprise and consumer lending flows across fintech platforms operating in over 60 countries

Tether regulatory scrutiny

• ▪Tether announced in August 2026 that auditing firm KPMG had conducted the first full audit of Tether's financial statements
• ▪Tether has faced years of regulatory scrutiny regarding the quality of its stablecoin reserves and allegations of illicit activities involving its token

Fasanara Capital partnership role

• ▪London-based Fasanara Capital, which manages over $6 billion in assets, will serve as the investment manager for StableFund
• ▪Fasanara Capital will deploy StableFund's capital into short-duration, asset-backed credit strategies through its global fintech lending network

Debatable claims

• ▪Stablecoin issuers should be prohibited from investing profits into unrelated venture capital
• ▪Tether's expansion into private credit poses unacceptable systemic risks

3 sources