Tether just made its biggest bet yet that stablecoins belong inside the plumbing of traditional finance, not just on crypto exchanges. The company partnered with London-based alternative asset manager Fasanara Capital to launch StableFund, a private credit vehicle seeded with $400 million in co-investment capital and targeting up to $3B from institutional investors.
The fund’s mission: use USDT settlement infrastructure to speed up lending to small and medium-sized enterprises and consumers, mostly through short-duration, asset-backed credit.
How StableFund actually works
Fasanara Capital will serve as the investment manager, deploying capital through its global network of 141 fintech lending originators spread across more than 60 countries. These originators, essentially digital lending platforms, source and underwrite loans to businesses and consumers that traditional banks often ignore or underserve.
Tether’s role goes beyond just writing a check. The company will provide USDT-linked settlement infrastructure, originate financing opportunities through its connectivity solutions, and handle cross-border capital flows. In practical terms, that means loan disbursements and repayments can move on stablecoin rails rather than waiting for SWIFT transfers to clear.
