Tether and London-based Fasanara Capital launched StableFund on September 9 with 400 million dollars in initial capital and a target to raise up to 3 billion dollars from institutional investors. The vehicle will target short-duration, asset-backed loans across a fintech network spanning more than 60 countries, extending Tether beyond the centralized crypto lending market where it controls roughly 60% of a 23 billion dollar sector with about 13.5 billion dollars in outstanding secured loans. Defaults are rising across the 3 trillion dollar private credit industry, reaching five-year highs at major funds, with Blue Owl’s default rate climbing to 2.8% in the second quarter. Key terms remain undisclosed, including Tether’s share of loss absorption, fund leverage, and whether Tether’s capital will absorb losses ahead of third-party institutional money.
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