Tether Joins Private Credit Market with $3 Billion Fund Amid Record Defaults

Tether has ventured into private credit by partnering with London-based Fasanara Capital to launch StableFund, which aims to raise $3 billion from institutional backers. The fund is seeded with $400 million in combined sponsor capital and will be managed by Fasanara.

The market for private credit is valued at around $3 trillion, but it has seen a significant increase in defaults recently. According to a Wall Street Journal analysis, publicly traded funds run by Ares Management, Blackstone, Blue Owl Capital, and Golub Capital have logged high default rates since 2021.

Tether's entry into private credit is notable because the company already runs a lending book with a $13.5 billion outstanding secured loan portfolio. However, StableFund will focus on lending to real businesses and consumers rather than crypto counterparties.