Tether and Fasanara Capital Commit $400 Million to StableFund, a Stablecoin-Enabled Private Credit Fund
Tether and Fasanara Capital committed $400 million to StableFund, a private credit fund using USDT stablecoin infrastructure for settlement and collateral, and plan to seek up to $3 billion more from third-party institutional investors. The fund lends to SMEs and consumers through fintech platforms in more than 60 countries, with loan origination beginning Q4 2026. It aims to reduce settlement cycles from T+2 to T+0, positioning stablecoin rails as operational infrastructure for institutional credit markets.
London, September 9, 2026. Tether, the issuer of the world's largest stablecoin USDT with approximately $184 billion in circulation, and Fasanara Capital, a London-based alternative asset manager, committed $400 million to StableFund and plan to seek up to $3 billion more from third-party institutional investors. The $400 million is a sponsor commitment, not the fund's total size. 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 lends to SMEs and consumers through fintech platforms in more than 60 countries. It invests in short-duration, asset-backed credit. Loan origination begins 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 removed primary regulatory barriers that had previously constrained institutional participation.
Tether is originator and advisor as well as settlement infrastructure provider. USDT's approximately $184 billion market capitalization represents roughly 59% of the total stablecoin market, which stands at approximately $305 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 is the investment manager, and Tether acts as originator and advisor. Tether sources USDT-linked financing opportunities. Blockchain infrastructure handles 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 sponsor commitment 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 approximately $184 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.