Tether and London-based Fasanara Capital are launching a $400 million initial tranche of a stablecoin-enabled private credit fund, with ambitions to raise up to $3 billion from institutional investors. The capital will be deployed through Fasanara's global fintech lending network, using stablecoins as the settlement and disbursement mechanism, positioning USDT-denominated credit as an institutional asset class.
For the crypto repo desk, this structure competes directly for yield-seeking institutional capital from family offices and crypto-native holders who might otherwise place collateral in repo facilities. At $3 billion target scale, the fund is large enough to meaningfully influence how institutional participants allocate stablecoin liquidity. Armada should monitor the fund's net yield and lockup terms relative to its own crypto repo rates to ensure competitive positioning.