Stablecoin issuer Tether is expanding into the realm of private credit.
The company behind USDT coin (CRYPTO: $USDT) is partnering with British asset manager Fasanara Capital and putting $400 million U.S. into a fund that plans to use its stablecoin to move money globally.
Specifically, Tether and Fasanara Capital are joining forces to support StableFund, a private credit vehicle that aims to raise as much as $3 billion U.S. from institutional investors.
Fasanara Capital will manage the fund and deploy the money into short-term, asset-backed loans through financial technology platforms operating in more than 60 countries.
Tether will source USDT-linked financing opportunities and provide the infrastructure for moving funds internationally, including converting traditional fiat currencies into stablecoins.
The fund is the latest step in Tether’s evolution beyond issuing and managing the USDT stablecoin that has made it one of the biggest crypto firms.
In recent months, Tether has expanded into payments, artificial intelligence (A.I.), telecommunications, and other investments.
USDT, the firm’s $145 billion U.S. stablecoin, accounts for more than half of the $300 billion U.S. global stablecoin market.
Both Tether and Fasanara Capital are privately held and their stocks do not trade on a public exchange.
Stablecoins are cryptocurrencies whose value is pegged to an underlying asset, typically the U.S. dollar or price of gold.
