Tether launches $400m fund targeting underserved SMEs
For many small businesses, getting a loan from a bank is not straightforward. They may not have enough assets to use as security or the financial history a bank wants to see.
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For many small businesses, getting a loan from a bank is not straightforward. They may not have enough assets to use as security or the financial history a bank wants to see.
Tether, the company behind the USDT stablecoin, is putting $400 million into a private credit fund aimed at businesses that have struggled to get this kind of financing.
Tether has launched the fund with Fasanara Capital, which will manage the lending. The fund will provide financing through fintech lending platforms rather than lending directly to every business.
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For many small businesses, getting a loan from a bank is not straightforward. They may not have enough assets to use as security or the financial history a bank wants to see. Tether, the company behind the USDT stablecoin, is putting $400 million into a private credit fund aimed at businesses that have struggled to get this kind of financing. Tether has launched the fund with Fasanara Capital, which will manage the lending. The fund will provide financing through fintech lending platforms rather than lending directly to every business. The companies are also looking to raise up to $3 billion from institutional investors.
How the fund will work
The fund, called StableFund, will invest in short-term loans backed by assets. Fasanara will use its network of fintech lenders to find borrowers. The network covers more than 60 countries, according to Tether. Tether will provide financing linked to USDT and the payment infrastructure used to move the money. This puts a crypto company into another part of financial services. Instead of USDT only being used to move money or trade crypto, Tether is now using it as part of a lending structure.
“For SMEs, the size of the fund is not the main issue. What matters is whether they can access the money and what it will cost them.”
Why SMEs are part of the focus
A small business can have customers and sales but still struggle to get working capital. Banks may ask for property or other assets as security. They may also require financial records that a newer business does not have. Private credit gives businesses another source of funding. Africa's private credit market has also been growing. Moody's said assets under management reached $5.6 billion at the end of 2025, up from $1.8 billion in 2020. Tether's fund adds more money to this type of lending, although it remains to be seen how much will go to African businesses.
Stablecoins are part of the deal
USDT is a dollar-backed stablecoin. It is widely used for moving dollar denominated funds between countries. Tether says the fund will use USDT to move capital between markets and connect the stablecoin with traditional currencies. That could make cross-border lending easier in some markets. But using USDT does not make a loan cheaper by itself. Businesses will still have to qualify for the financing and meet the terms set by the lenders.
The real question for small businesses
Tether has put $400 million behind the fund and plans to raise more. For SMEs, however, the size of the fund is not the main issue. What matters is whether they can access the money, how much they can borrow and what it will cost them. If the fund's lending partners reach businesses in African markets, it could give some SMEs another option when bank financing is difficult to get.
