Tether and Fasanara have officially partnered to launch StableFund.
The stablecoin credit fund will have $400M of capital ready to be deployed for global business lending using the USDT stablecoin.
This will assist companies who are not able to receive traditional lending or pass criteria fast enough for long-term credit programs.
Tether is also investing into new startups supporting stablecoins across the LATAM region.
Stablecoin Credit Gaining Momentum
Stablecoin credit is continuing to become a popular use-case for the industry.
Recently, Visa and CreditCoop revealed how this can be used to provide short-term stablecoin financing for crypto card issuers in daily settlements.
This initiative by Tether and Fasanara tackles a completely different landscape: private credit.
In fact, Tether’s blog estimates that the private credit industry has grown to $3T worldwide as institutions and enterprises seek alternative lending sources.
However, in emerging economies, there’s a larger demand for small and medium-sized businesses to get necessary capital to start or continue their operations.
Stablecoins allow an alternative form of lending in those regions, and also enables borrowers with opportunities to receive capital faster and earn on their idle balances in treasury.
For Tether, this provides a completely new distribution channel for USDT. Additionally, it gives stablecoins another sector to go after.
