Tether is pushing USDT into a cracking $3 trillion Wall Street debt machine as defaults hit five-year highs at major funds

Tether is pushing USDT into the private-credit market as defaults and withdrawals strain the $3 trillion industry.

On Sept. 9, the stablecoin issuer and London-based Fasanara Capital launched StableFund with $400 million in combined sponsor capital and plans to raise up to $3 billion more from institutional investors.

Fasanara will manage the portfolio, while Tether will help originate USDT-linked financing opportunities and provide settlement and treasury infrastructure.

The expansion takes Tether beyond a crypto lending market it already dominates and closer to financing businesses and consumers in the real economy. Galaxy Research estimates that Tether controlled around 60% of the $23 billion centralized crypto-lending market at the end of June, giving it roughly $13.5 billion of outstanding secured loans.

StableFund therefore represents an attempt to extend Tether’s existing credit operation into a much larger asset class, at a time when regulators and investors are scrutinizing private credit more closely

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