Stablecoin Issuers Build Yield Infrastructure Around GENIUS Act's Interest Ban
Tether has launched the StableFund mechanism in partnership with Fasanara Capital, which targets up to $3 billion in third-party institutional capital. The vehicle is anchored by a $400 million co-investment from both sponsors and will focus on short-duration, asset-backed private credit targeting SME and consumer lending.
The StableFund is not the only example of this trend; Ripple, Clearpool, and Cicada Partners launched a similar fund in August 2026. The infrastructure built around stablecoins like USDT allows for institutional capital to flow through them, creating complex off-chain credit structures that bypass the GENIUS Act's interest ban.
The success of StableFund hinges on credit quality, not crypto market sentiment. Tether reported $10 billion in 2025 profit from U.S. Treasury reserves backing USDT, but deploying this capital into private credit introduces a risk profile different from holding short-dated government bonds.