Tether and asset manager Fasanara Capital have launched a $400 million private credit fund that aims to raise as much as $3 billion from institutional investors, expanding Tether’s use of its USDT stablecoin beyond its traditional role in crypto markets. The fund, called StableFund, will use USDT as settlement infrastructure for short-duration, asset-backed lending to businesses and consumers through fintech platforms operating in more than 60 countries.
The two companies have provided $400 million to start the fund, which is structured as an evergreen vehicle. Fasanara Capital will manage the investments, while Tether will identify USDT-linked financing opportunities and provide infrastructure for moving funds between on-chain and traditional financial systems.
Tether and Fasanara Capital Launch $400 Million Private Credit Fund to Expand Stablecoin-Enabled Real-Economy Lending
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— Tether (@tether) September 9, 2026
StableFund will prioritize financing to both consumers and small and medium-sized enterprises. It is anticipated that it would invest in sectors including supply-chain financing and trade receivables, where companies frequently require short-term capital to manage their cash flow.
Fasanara, a London-based asset manager with more than $6 billion under management, will deploy capital through its network of fintech lending platforms. The arrangement gives the fund access to borrowers across a wide geographic area rather than relying on a single market.
For Tether, the initiative represents another step in its effort to deploy capital outside its core stablecoin business. The company has become one of the crypto industry’s most profitable firms, with much of its earnings coming from assets such as US Treasury securities and repo holdings.
Tether reported around $1.5 billion in net operating profit for the second quarter, according to the information provided, and held approximately $187.8 billion in assets with a $4.11 billion reserve buffer at the end of June.
The company has increasingly used its capital for investments outside stablecoins. Its recent activities have included investments in Argentine neobank Ualá, Mercado Bitcoin and Italian football club Juventus. Tether also led a $50 million funding round for AI sleep-technology company Eight Sleep in March.
StableFund gives Tether another way to put its financial resources to work. Instead of limiting USDT’s role to crypto trading and payments, the fund is designed to use the stablecoin as part of the infrastructure for real-world lending.
The use of USDT as settlement infrastructure is particularly significant. The stablecoin can allow funds to move between participants on blockchain networks while the underlying credit activity remains linked to traditional businesses and financial institutions.
The fund’s target of up to $3 billion also signals the scale that Tether and Fasanara hope to achieve. However, the initial $400 million commitment is the capital currently provided by the two firms, while the remaining amount would have to come from institutional investors.
The initiative comes as stablecoins increasingly find applications beyond cryptocurrency trading. Financial institutions and fintech companies are exploring digital dollars for payments, settlements, treasury operations and other financial activities.
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