Tether Joins $3 Trillion Private-Credit Market with New Fund Launch

Tether is expanding its presence in the private-credit market through StableFund, a new $400 million vehicle launched with Fasanara Capital. The fund aims to raise up to $3 billion from institutional investors and will be managed by Fasanara, while Tether will help originate USDT-linked financing opportunities.

The partnership marks an attempt by Tether to extend its existing credit operation into a larger asset class, as regulators and investors scrutinize private credit more closely. The move comes at a time when defaults have reached five-year highs in major funds, including those managed by Ares Management, Blackstone, Blue Owl Capital, and Golub Capital.

Fasanara plans to deploy the fund into short-duration, asset-backed loans across a fintech network spanning over 60 countries. The portfolio will include financing for small and medium-sized businesses and consumers, as well as trade receivables and supply-chain credit. Tether's role in the partnership is significant, but its exact level of financial risk remains unclear.