Tether Unveils StableFund with Fasanara Capital
Tether is expanding its reach beyond cryptocurrency lending into the private credit market with a new fund called StableFund. Launched in partnership with London-based Fasanara Capital on September 9, StableFund has an initial investment of $400 million and plans to raise up to $3 billion from institutional investors.
Fasanara will manage the portfolio while Tether will help originate USDT-linked financing opportunities and provide settlement and treasury infrastructure. This marks a significant move for Tether, which already dominates the centralized crypto-lending market with around 60% of the $23 billion market at the end of June, giving it roughly $13.5 billion in outstanding secured loans.
The expansion comes as private credit is facing increased scrutiny from regulators and investors. Defaults and withdrawals are straining the $3 trillion industry, which has seen its boom turn into a tougher test. An August Wall Street Journal analysis found worsening loan health and investor returns across publicly traded funds overseen by Ares Management, Blackstone, Blue Owl Capital, and Golub Capital.