Tether and Fasanara launch US$400m StableFund targeting US$3bn of private credit capital

Tether and Fasanara Capital have launched an evergreen private-credit fund with US$400m of sponsor capital and a target of raising up to US$3bn from institutional investors, creating a new funding channel for short-duration asset-backed lending to SMEs and other borrowers.

StableFund, formally the Tether-Fasanara Lending Fund, will be jointly sponsored by the two companies, with Fasanara acting as investment manager. The London-based asset manager will deploy capital through its international fintech lending network across short-duration asset-backed credit strategies.

Tether will act as originator and adviser while providing USDT-linked settlement infrastructure, including treasury rails and mechanisms for moving capital between conventional and stablecoin systems.

The companies said the structure is intended to embed stablecoin settlement into lending activity across fintech platforms operating in more than 60 countries.

The significance lies primarily in the underlying credit assets rather than the cryptocurrency element. Fasanara says its existing private-credit platform originates through fintech lenders across SME loans, consumer credit, trade receivables and supply chain finance, giving StableFund potential exposure to several working-capital asset classes.

The initial US$400m represents co-investment by the sponsors rather than the eventual size of the vehicle. The US$3bn figure is a fundraising target for third-party institutional capital and should therefore not be treated as committed funding.

The structure also combines the funding and settlement layers of private credit. Fasanara will provide underwriting and asset-management infrastructure, while Tether intends to use USDT rails to facilitate cross-border funding and settlement.

That could be particularly relevant where fintech originators finance short-duration receivables or SME assets across jurisdictions in which conventional settlement is slower or fragmented. The companies have not disclosed expected portfolio allocation by asset class, geography, borrower type, pricing or targeted returns.

Fasanara manages more than US$6bn and already operates a technology-enabled credit platform spanning more than 60 countries.

The launch therefore brings a sizeable pool of sponsor capital into the intersection of asset-backed finance, fintech origination and digital settlement, while leaving the eventual scale dependent on whether institutional investors commit towards the US$3bn target.