Tether has partnered with London-based Fasanara Capital to launch StableFund, a private credit vehicle. The fund is seeded with $400 million in co-investment capital and aims to attract up to $3 billion from institutional investors.
The fund focuses on providing short-duration, asset-backed credit to small and medium-sized enterprises (SMEs) and consumers. It targets a global SME financing gap estimated by the International Finance Corporation at approximately $5.7 trillion.
Fasanara Capital acts as the investment manager, utilizing a network of 141 fintech lending originators across more than 60 countries to source and underwrite loans.
Tether provides the USDT-linked settlement infrastructure and connectivity solutions to handle cross-border capital flows. This allows loan disbursements and repayments to occur via stablecoin rails instead of traditional SWIFT transfers.
The broader private credit market is currently estimated at $3 trillion globally and is projected to grow to $5 trillion by 2029.