Private credit asset manager Fasanara Capital and stablecoin issuer Tether have launched a $400m (£295.3m) private credit fund.

The firms have launched the Tether-Fasanara Lending Fund, with the jointly sponsored evergreen private credit vehicle targeting up to $3bn in third-party institutional capital.

The fund’s structure embeds USD₮, a US dollar-pegged stablecoin, into consumer and small and medium-sized enterprise lending flows across fintech platforms, the firms said.

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“Tether brings something unique to that equation: the largest stablecoin network in the world, a crypto-native investor base with significant capital capacity, and USD₮ rails that extend the reach of credit beyond anything conventional funding structures can achieve,” said Francesco Filia, chief executive of Fasanara Capital.

“Together, we are improving how capital is deployed into real-economy lending markets and enabling more efficient cross-border credit flows.”

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London-based fintech lender Fasanara will act as investment manager for the fund, deploying capital into short-duration, asset-backed credit strategies.

Tether will be a co-sponsor, acting as originator and adviser for the fund, sourcing USD₮-linked financing opportunities and providing the stablecoin settlement infrastructure.

“Together with Fasanara, we are turning Tether’s origination network into a direct channel for capital to flow to the businesses and communities that need it most,” said Paolo Ardoino, chief executive of Tether.

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