Tether has entered the private credit market with the launch of StableFund, an evergreen private credit vehicle developed in partnership with specialist asset manager Fasanara Capital.
The fund is anchored by a combined $400 million co-investment from Tether and Fasanara and is targeting up to $3 billion in institutional capital, marking the digital assets firm’s first major move into private markets.
The launch comes as private credit continues its rapid expansion. The market is currently valued at around $3 trillion globally and is forecast to reach $5 trillion by 2029, driven by growing institutional demand for alternative sources of yield and financing.
StableFund will utilise Tether’s USD₮ stablecoin, integrating it into SME and consumer lending channels across fintech platforms worldwide. The initiative aims to bridge digital asset infrastructure with real-world lending opportunities, enabling more efficient cross-border capital flows.
Paolo Ardoino, CEO of Tether, said: “USD₮ was built to be money that works everywhere, across borders, around the clock, without friction. Through this fund, Tether is playing the role it is best positioned to play, sourcing USD₮-linked financing opportunities and providing the stablecoin infrastructure that enables seamless cross-border lending.”
