Crypto · updated 2h ago · 3 min read
Tether and Fasanara Launch $400 Million Stablecoin Private Credit Fund Targeting $3 Billion
StableFund is an evergreen private credit fund seeded with $400 million from both sponsors. It targets up to $3 billion in additional institutional capital.
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StableFund launched
Tether and Fasanara Capital launched StableFund, an “evergreen private credit vehicle” seeded with $400 million in co-investment from both sponsors and targeting up to $3 billion in institutional capital.
“The two companies on Wednesday (Sept. 9) announced the launch of the StableFund”
The fund is designed to use Tether’s USD₮ coin as settlement infrastructure for short-duration, asset-backed lending to small and medium-sized businesses and consumers through fintech platforms in 60-plus countries.
Tether said the launch comes as private credit has grown into an approximately $3 trillion global market and is projected to reach $5 trillion by 2029, reflecting demand for alternative financing and institutional exposure to real-economy lending.
Tether CEO Paolo Ardoino said, “USD₮ was built to be money that works everywhere, across borders, around the clock, without friction,” and framed the fund as a way to source USD₮-linked opportunities and provide stablecoin infrastructure for cross-border lending.
Fasanara Capital CEO Francesco Filia said the partnership brings “the largest stablecoin network in the world” and “USD₮ rails” to extend credit beyond conventional funding structures.
Market context and scale
PYMNTS reported that private credit has become an approximately $3 trillion global market and is projected to reach $5 trillion by 2029, while also citing a $5.7 trillion global financing gap for small and medium-sized businesses.
The same PYMNTS piece said the U.S. private credit default rate reportedly reached 6.1% last month, and warned that when lenders’ own investors ask harder questions about portfolio quality, lenders have an incentive to ask borrowers harder questions first.
Pluang said Tether’s USDT and Circle’s USDC together control about 85% of the stablecoin market, with a combined supply of roughly $257.7 billion out of a $302.9 billion total market cap.
Pluang also reported that Tether and Fasanara launched StableFund, a private credit fund seeded with $400 million and targeting $3 billion from institutional investors.
TradingView described StableFund as using Tether’s USDT as settlement infrastructure for short-duration, asset-backed lending through fintech platforms in more than 60 countries, with Fasanara managing investments and Tether sourcing USDT-linked opportunities.
Roles, strategy, and risk
Across coverage, Tether’s role in StableFund is described as providing stablecoin settlement infrastructure and sourcing USDT-linked financing opportunities, while Fasanara is positioned as the investment manager deploying capital through its fintech lending network.
“The two firms have set a goal of raising up to an additional $3 billion from institutional investors”
BigGo Finance said the evergreen fund will use Tether’s USDT as settlement infrastructure to invest in short-term asset-backed loans through fintech platforms in approximately 60 countries, with the focus on lending to small and medium-sized enterprises and consumers.
BigGo Finance also reported that Fasanara oversees more than $6 billion in assets under management, and that Tether’s second-quarter net operating profit was approximately $1.5 billion, mostly generated from holdings of U.S. Treasuries and repurchase agreements (repos).
In a separate discussion of private credit mechanics, Wisconsin Department of Employee Trust Funds Senior Portfolio Manager Lin Maung said, “Private credit structures can be a little more flexible,” and noted that “When speed and certainty are important, companies may choose private credit even when they have other financing options available.”
That same Wisconsin Department of Employee Trust Funds piece cautioned that private credit can face challenges during periods of economic stress, with Senior Portfolio Manager Beth Holzberger saying, “Those headlines are largely about open-ended investment vehicles that allow investors to request redemptions,” contrasting them with long-term institutional structures.