Tether Launches $400 Million Fund Amid Rising Defaults in Private Credit Market
- On Sept. 9, Tether and Fasanara Capital launched StableFund with $400 million in initial capital.
- The fund aims to raise up to $3 billion from institutional investors for private credit opportunities.
- Tether currently controls approximately 60% of the $23 billion centralized crypto-lending market, equating to about $13.5 billion in outstanding secured loans.
- Defaults in private credit have reached a five-year high, with Blue Owl’s default rate at 2.8% in Q2.
- StableFund will focus on short-duration, asset-backed loans across a fintech network in over 60 countries.
The launch of StableFund comes as the private credit market faces increased scrutiny due to rising defaults and investor redemption pressures. The fund’s structure allows continuous capital deployment, which may help mitigate some liquidity concerns.
With Tether’s existing dominance in the lending space and its plans for StableFund, it seeks to expand its influence into a larger asset class while navigating a challenging credit environment marked by significant defaults (Source).
