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Tether launches StableFund to grow USDT-linked private credit deals
The launch pairs $400 million of combined sponsor capital with a plan to raise as much as $3 billion from institutional investors, with Fasanara managing the portfolio.
Tether has entered private credit with a new vehicle, StableFund, aiming to use USDT-linked financing opportunities as defaults and withdrawals pressure the wider $3 trillion private-credit industry, according to CryptoSlate.
On Sept. 9, the stablecoin issuer and London-based Fasanara Capital launched StableFund with $400 million in combined sponsor capital and plans to raise up to $3 billion more from institutional investors. Fasanara will manage the portfolio, while Tether will originate the deals and provide settlement and treasury infrastructure.
CryptoSlate reports that Tether’s move goes beyond the crypto lending market it already dominates, following the growth of private lending into a major Wall Street business. The outlet cites Galaxy Research estimates that Tether controlled about 60% of the roughly $23 billion centralized crypto-lending market as of the end of June, implying about $13.5 billion in outstanding secured loans.
The timing is notable as loan health and investor returns have deteriorated across publicly traded private-credit funds, with defaults at those vehicles reaching their highest levels since at least 2021, CryptoSlate said. The report also notes that private credit is facing stresses such as redemption pressure and concerns about heavily indebted borrowers.