Tether Enters Private Credit Market with $3 Billion StableFund Launch

Tether, the operator of the USDT stablecoin, has launched StableFund, a perpetual private credit fund with an initial size of $3 billion. This move marks a significant shift for Tether, which has traditionally focused on providing liquidity to cryptocurrency exchanges.

The fund, launched in partnership with Fasanara Capital, aims to provide small and medium-sized enterprise lending and consumer credit across more than 60 countries. Tether will serve as the primary source of funds and settlement infrastructure, while Fasanara will act as underwriter and risk officer.

This move is seen as a game-changer in the private credit market, where borrowers can receive USDT credited to their accounts in seconds, bypassing traditional banking lending channels. However, this also raises concerns about Tether's ability to manage risk and its potential impact on the global economy.