Tether is pushing USDT into a cracking $3 trillion Wall Street debt machine as defaults hit five-year highs at major funds

Tether is pushing USDT into the private-credit market as defaults and withdrawals strain the $3 trillion industry. On Sept. 9, the stablecoin issuer and London-based Fasanara Capital launched StableFund with $400 million in combined sponsor capital and plans to raise up to $3 billion more from institutional investors. Fasanara will manage the portfolio, while Tether will help originate USDT-linked financing opportunities and provide settlement and treasury infrastructure. The expansion takes Tether beyond a crypto lending market it already dominates and closer to financing businesses and consumers in the real economy. Galaxy Research estimates that Tether controlled around 60% of the $23 billion centralized crypto-lending market at the end of June, giving it roughly $13.5 billion of outstanding secured loans. Related Reading Crypto lending turns to Wall Street credit rules to win back institutional trust after 2022 collapse StableFund therefore represents an attempt to extend Tether’s existing credit operation into a much larger asset class, at a time when regulators and investors are scrutinizing private credit more closely Private credit's boom is running into a tougher test StableFund arrives after years of rapid growth turned private lending into one of Wall Street's most sought-after businesses, but the credit cycle is becoming less forgiving . An August Wall Street Journal analysis found worsening loan health and investor returns across publicly traded funds overseen by Ares Management, Blackstone, Blue Owl Capital and Golub Capital. Defaults at those vehicles reached