Tether and Fasanara Capital have launched StableFund, an evergreen private credit fund backed by $400 million from the two firms and targeting as much as $3 billion from institutional investors.

According to Tether, the fund will use Tether’s USDT (USDt) as settlement infrastructure for short-duration, asset-backed lending to businesses and consumers through fintech platforms in more than 60 countries. The companies announced the launch Wednesday.

Fasanara will manage StableFund’s investments, while Tether will identify USDT-linked financing opportunities and provide the infrastructure for moving funds onchain and offchain. The fund will focus on small and medium-sized businesses and consumer lending, including trade receivables and supply chain finance.

The arrangement gives USDT a defined role in the fund’s lending workflow: Fasanara will source and manage credit exposure through fintech lenders, while Tether will support the movement and settlement of funds. The fund’s ability to raise additional capital and deploy it across its stated lending categories will be key developments to watch.

Fasanara, a London-based asset manager with more than $6 billion under management, will deploy the capital through its network of fintech lenders.

Tether has become one of the crypto industry’s most profitable companies. It generated about $1.5 billion in net operating profit in the second quarter, largely from its US Treasury and repo holdings, according to the company. The USDT issuer reported $187.8 billion in assets and a $4.11 billion reserve buffer at the end of June.

Tether has increasingly deployed capital beyond its core stablecoin business. Its investments include $20 million in Argentine neobank Ualá, an investment in Mercado Bitcoin, and an investment in Italian football club Juventus. In March, Tether also led a $50 million funding round for AI sleep technology company Eight Sleep.

The source also referenced the top five stablecoins by market capitalization, citing DeFiLlama.