Tether and Fasanara Capital Launch $400 Million Stablecoin-Enabled Private Credit Fund

London, September 9, 2026. Tether, the issuer of the world's largest stablecoin USDT with over $130 billion in circulation, and Fasanara Capital, a London-based alternative asset manager, have jointly launched a $400 million private credit fund that uses stablecoin infrastructure for settlement and collateral. The fund targets the $1.2 trillion private credit market, deploying capital through USDT-denominated transactions to reduce settlement cycles from T+2 to T+0.

The fund's core operational advantage is settlement speed. Traditional private credit transactions clear in two business days, creating capital inefficiency and counterparty exposure throughout the settlement window. By routing transactions through USDT, the fund achieves same-day finality, reducing idle capital and lowering counterparty risk for both borrowers and lenders. Daily USDT trading volume ranges between $80 billion and $100 billion, providing the liquidity depth required for institutional-scale credit operations.

The fund will focus on mid-market borrowers across Europe and Asia, with loan origination beginning in Q4 2026. Credit underwriting follows Fasanara's established alternative asset methodology, with blockchain settlement handling the operational layer rather than the credit assessment process.

The launch arrives amid accelerating institutional acceptance of digital asset infrastructure. Fidelity Digital Assets' 2026 survey found 67% of institutional investors now hold digital assets in some capacity. Citigroup launched bitcoin custody services in August 2026. The SEC's approval of spot Bitcoin and Ethereum ETFs in 2024, combined with CFTC guidance on blockchain financial products issued in September 2024, removed primary regulatory barriers that had previously constrained institutional participation.

Tether's role in this structure is that of infrastructure provider rather than credit underwriter. USDT's $130 billion market capitalization represents roughly 65% of the total stablecoin market, which stands at approximately $180 to $200 billion. The stablecoin processes $80 to $100 billion in daily volume. Tether maintains reserves in US Treasury securities, cash equivalents, and other liquid assets, subject to quarterly attestations by independent accounting firms.

Risk management is central to the fund's design. The structure incorporates independent reserve verification for stablecoin collateral, multi-jurisdictional legal documentation, and smart contract audits conducted by third-party security firms. The fund maintains diversified borrower exposure across sectors and geographies to limit concentration risk. Fasanara's credit team retains full discretion over loan origination decisions, with blockchain infrastructure handling settlement and record-keeping functions. Regulatory compliance frameworks align with EU MiCA requirements and applicable UK financial regulations.

Blockchain-based private credit currently represents $2 to $3 billion in total value locked, a small fraction of the addressable market. The Tether-Fasanara fund's $400 million initial size positions it as the largest institutional stablecoin credit vehicle to date, according to the fund's announcement. Fund performance data is expected in Q2 2027.

Vietnam's August 2026 announcement establishing a regulated crypto market framework, alongside Grayscale's Zcash ETF launch the same month, reflects concurrent institutional and governmental validation of blockchain financial infrastructure across multiple jurisdictions.

About Tether

Tether Operations Limited issues USDT, the world's largest stablecoin by market capitalization at over $130 billion. USDT operates across multiple blockchain networks and processes $80 to $100 billion in daily transaction volume. Tether maintains reserves in US Treasury securities, cash equivalents, and other liquid assets, subject to quarterly attestations by independent accounting firms.

About Fasanara Capital

Fasanara Capital is a London-based alternative asset manager founded in 2013, specializing in quantitative strategies, private credit, and emerging market debt. The firm manages assets across institutional mandates and has developed expertise in fintech lending, supply chain finance, and technology-enabled credit strategies. Fasanara serves institutional investors including pension funds, sovereign wealth funds, and family offices across Europe and Asia.