Tether Expands Into Private Credit

Stablecoin issuer Tether is branching out into the realm of private credit. The company, behind the USDT coin, has teamed up with British asset manager Fasanara Capital to establish a $400 million fund. This fund, known as StableFund, intends to raise up to $3 billion from institutional investors. The partnership aims to utilize Tether's USDT stablecoin to facilitate international money transfers.

Fasanara Capital will oversee the fund's operations and deploy the capital into short-term, asset-backed loans through fintech platforms in over 60 countries. Tether will handle USDT-linked financing opportunities and facilitate the conversion of traditional currencies into stablecoins. This move marks Tether's expansion beyond its stablecoin offerings, which now include payments, AI, telecommunications, and other investments.

The USDT stablecoin, worth $145 billion, constitutes more than half of the $300 billion global stablecoin market. Both Tether and Fasanara Capital are private entities, with no publicly traded shares. Stablecoins are cryptocurrencies whose value is linked to a reserve asset, usually the U.S. dollar or gold.