Tether and Fasanara Launch $400M Stablecoin-Enabled Private Credit Fund

What happened: Tether and Fasanara Capital announced the launch of StableFund, a $400 million private credit fund targeting up to $3 billion from institutional investors. The fund will deploy short-duration, asset-backed credit to SMEs and consumers via Fasanara’s fintech lending network across more than 60 countries. Tether will provide USDT-linked origination and settlement rails.

Why it matters: This move signals Tether’s expansion beyond stablecoin issuance into direct credit intermediation, blurring the line between issuer and lender. With the private credit market projected to grow from $3 trillion to $5 trillion by 2029, Tether’s strategy could reshape cross-border lending and settlement. However, the fund’s structure may draw regulatory scrutiny, as stablecoin issuers face increasing pressure to separate payment infrastructure from lending activities.

Source: The Block