Tether is launching a $3B private credit fund denominated in USDT.
DeFi & Yields ·
Tether and Fasanara Capital have launched a $400 million fund focused on private credit denominated in USDT, with ambitions to reach $3 billion in institutional capital deployment. The initiative positions stablecoin-backed lending as an alternative channel for institutional investors seeking yield on dollar-denominated assets.
The fund structure combines Tether's stablecoin infrastructure with Fasanara Capital's credit management expertise, allowing institutions to deploy capital into private lending markets while maintaining exposure to USDT. This approach bridges traditional finance's institutional credit allocation with blockchain-native settlement and custody.
Key questions remain unresolved: the fund's timeline for reaching the $3 billion target, specific credit sectors or geographies it will prioritize, minimum investment thresholds for institutional participants, and how the arrangement handles regulatory oversight across multiple jurisdictions.