Tether and Fasanara Capital have launched a $400 million private credit vehicle designed to use stablecoin infrastructure to expand lending to small and medium-sized businesses globally.
The new fund, called StableFund, combines $400 million in commitments from the two firms and aims to attract as much as $3 billion from third-party institutional investors. The announcement marks another step in Tether’s push to extend its stablecoin business beyond trading and payments into traditional financial markets.
StableFund Targets Underserved Borrowers
Fasanara Capital will manage the fund and deploy capital through its fintech lending network across more than 60 countries. The strategy will focus on short-duration, asset-backed credit, including financing for small and medium-sized businesses and other borrowers that have historically struggled to access conventional funding.
Tether will act as co-sponsor, originator and adviser. It will source financing opportunities linked to its USD₮ stablecoin and provide settlement infrastructure, including connections for moving funds on and off stablecoin networks.
The structure will integrate USD₮ into lending flows across fintech platforms, allowing capital to move across borders through stablecoin-based settlement rails.
The companies said the approach could help address a global small-business financing gap estimated at $5.7 trillion.
Stablecoins Move Deeper Into Finance
The launch reflects a broader effort to position stablecoins as financial infrastructure rather than simply cryptocurrency trading instruments.
Tether said StableFund will operate as an evergreen private credit vehicle, giving it flexibility to scale as institutional participation grows. Fasanara brings experience in technology-enabled private credit and asset-based finance, while Tether contributes its global stablecoin network and liquidity infrastructure.
For institutional investors, the fund offers exposure to private credit while connecting that market with stablecoin-based settlement. For Tether, it creates another channel for USD₮ to participate in real-world financial activity.
The initiative also comes as private credit continues to expand globally. Tether and Fasanara estimate the market currently stands at about $3 trillion and could reach $5 trillion by 2029.
