Tether and Fasanara Capital launch $400M private credit fund
DeFi & Yields ·
StableFund will channel USDT into SME and consumer lending across more than 60 countries, with a further $3B in capital raising planned.
Tether and Fasanara Capital have launched StableFund, a $400 million vehicle designed to extend USDT-backed private credit to small and medium-sized enterprises and consumer borrowers in more than 60 countries, according to The Block. The two firms plan to raise an additional $3 billion for the fund, extending Tether's push beyond stablecoin issuance into direct credit markets.
The structure ties USDT directly into lending activity rather than treating it purely as a trading or settlement asset. By denominating the fund in USDT, StableFund aims to route dollar-pegged liquidity into private credit markets that have historically been difficult for smaller borrowers to access, particularly outside major financial centers. The multi-country scope signals an effort to use stablecoin rails as a distribution mechanism for consumer and SME lending in regions where traditional bank credit may be limited.
The launch fits into a broader pattern of stablecoin issuers moving into private credit. Separate reporting has described Tether establishing a $3 billion private credit fund denominated in USDT, a figure that aligns with the additional capital StableFund intends to raise. Other accounts of the same launch confirm the $400 million initial size and the $3 billion institutional capital target, indicating consistent reporting across multiple outlets on both the fund's scale and its ambitions.
The move comes as Tether's stablecoin faces separate pressures elsewhere in its business. Reporting has noted that USDC has been gaining ground on USDT in stablecoin trading volume, and that USDT's compliance timeline is under scrutiny as the GENIUS Act moves toward full enforcement by July 2028, which could affect Tether's U.S. exchange presence. Against that backdrop, expanding into private credit represents a diversification of USDT's use case beyond spot and derivatives trading.
Not yet detailed is how StableFund will underwrite creditworthiness across such a wide range of jurisdictions, what returns or risk profile investors in the $3 billion raise can expect, or how loan performance will be reported. Also unclear is the timeline for closing the additional $3 billion in commitments and which institutional investors, if any, have already committed capital.