Tether: Launches $400M Private Credit Fund

Tether is launching a $400 million fund with Fasanara Capital to finance underserved small and mid-sized businesses, sourcing USDT-linked opportunities while providing settlement rails and targeting up to $3 billion from outside investors. Only half the structure moved onchain so far, with USDT handling payments while the credit exposure remains a traditional fund interest that restricts ownership to large institutions. This highlights an issuance gap in stablecoin credit markets where anyone can hold USDT but few can access the underlying LP interest, raising questions around future private credit tokenization via structures like ERC-4626 vaults.