Tether pushes into private credit with $400 million fund with Fasanara

Stablecoin issuer Tether is pushing into private credit with Fasanara Capital, putting $400 million behind a new fund that plans to use its $USDT token to move money to lenders worldwide.

The two firms are backing StableFund, an evergreen private credit vehicle that aims to raise as much as $3 billion from outside institutional investors, according to an announcement on Wednesday.

Fasanara, a London-based asset manager focused on private credit, will manage the fund and deploy the money into short-term, asset-backed loans through fintech platforms operating in more than 60 countries. The strategy targets financing for small and medium-sized businesses and consumers.

Tether will source $USDT-linked financing opportunities and provide the stablecoin infrastructure for moving funds across borders, including converting between traditional currencies and digital dollars.

The fund is the latest step in Tether's push well beyond the business that made it one of crypto's largest companies. Flush with profits from the U.S Treasury reserves backing $USDT, Tether has expanded into payments, artificial intelligence, telecommunications and other investments. $USDT, the firm’s $145 billion token, accounts for more than half of the $300 billion stablecoin market and is particularly popular in emerging economies.

“Through this fund, Tether is playing the role it is best positioned to play, sourcing $USDT-linked financing opportunities and providing the stablecoin infrastructure that enables seamless cross-border lending,” Tether CEO Paolo Ardoino said.