Tether's $3B Bet on Stablecoins Enters Traditional Finance with StableFund

Tether has made its biggest bet yet on stablecoins in traditional finance by launching StableFund, a private credit vehicle in partnership with London-based alternative asset manager Fasanara Capital. The fund aims to raise up to $3 billion from institutional investors and seed it with $400 million in co-investment capital.

The mission of StableFund is to use USDT settlement infrastructure to speed up lending to small and medium-sized enterprises and consumers, mostly through short-duration, asset-backed credit. Fasanara Capital will serve as the investment manager, deploying capital through its global network of 141 fintech lending originators across more than 60 countries.

The target asset class is short-duration and asset-backed, which matters for risk management. Short-duration lending typically measured in months rather than years allows the fund to reprice and redeploy capital quickly as conditions change. Asset-backed structures provide a layer of collateral protection that unsecured lending doesn't offer.