Tether, Fasanara launch $400M private credit fund targeting $3B

Tether and Fasanara Capital have launched a private credit fund backed by $400 million from the two firms that aims to raise as much as $3 billion from institutional investors.

The evergreen fund, called StableFund, will use Tether’s USDT (USDt) as settlement infrastructure for short-duration, asset-backed lending to businesses and consumers through fintech platforms in more than 60 countries, the companies said Wednesday.

Fasanara will manage the fund’s investments, while Tether will source USDT-linked financing opportunities and provide the infrastructure for moving funds on- and offchain. The fund will focus on small and medium-sized businesses and consumer lending, including trade receivables and supply chain finance.

Fasanara, a London-based asset manager with more than $6 billion under management, will deploy the capital through its network of fintech lenders.

Tether has emerged as one of the crypto industry’s most profitable companies, generating about $1.5 billion in net operating profit in the second quarter, largely from its US Treasury and repo holdings. The USDT issuer reported $187.8 billion in assets and a $4.11 billion reserve buffer at the end of June.

The company has increasingly deployed that capital beyond its core stablecoin business, including a $20 million investment in Argentine neobank Ualá and investments in Mercado Bitcoin and Italian football club Juventus. Tether also led a $50 million funding round for AI sleep technology company Eight Sleep in March.

Top five stablecoins by market cap. Source: DefiLlama