Tether, Fasanara launch $400M private credit fund using USDT

Key facts

• Tether and Fasanara Capital have launched a new private credit fund named StableFund.
• The fund is initially backed by $400 million from Tether and Fasanara Capital.
• StableFund has a target of raising up to $3 billion from institutional investors.
• The fund will utilize Tether's USDT stablecoin for settlement and financing.
• It will focus on short-duration, asset-backed lending to businesses and consumers via fintech platforms in over 60 countries.
• Fasanara Capital will manage the fund's investments, while Tether will provide financing opportunities and infrastructure.

Tether and Fasanara Capital have jointly launched a new private credit fund, StableFund, with an initial backing of $400 million and a target of $3 billion from institutional investors. The evergreen fund is designed to support asset-backed lending through fintech platforms in more than 60 countries, utilizing Tether's USDT stablecoin for settlement and financing.

Fasanara Capital, an asset manager with over $6 billion in assets under management, will oversee the fund's investments and deploy capital through its network of fintech lenders. Tether will be responsible for sourcing USDT-linked financing opportunities and providing the necessary on- and off-chain infrastructure for fund movements. The fund's primary focus will be on short-duration loans for small and medium-sized businesses and consumer lending, including areas like trade receivables and supply chain finance.

Tether, known for its USDT stablecoin, has been diversifying its business operations. The company reported significant profitability, with approximately $1.5 billion in net operating profit in the second quarter, largely derived from its holdings in U.S. Treasuries and repurchase agreements. At the end of June, Tether reported $187.8 billion in assets and a reserve buffer of $4.11 billion. This strategic move into private credit follows Tether's recent investments in various sectors, including a neobank, a cryptocurrency exchange, and an AI sleep technology company.