Tether Banks the Yield Ban
The Treasury Secretary is publicly framing stablecoin reserve mandates as a major, growing source of US debt demand.
Tether is building yield infrastructure designed to work around the GENIUS Act's prohibition on stablecoin interest payments, per coverage, while separately launching a $400 million private credit fund with Fasanara that incorporates stablecoin payment rails, per reporting. Tether and Circle were jointly cited as controlling approximately 85% of stablecoin supply, with market concentration described as near record highs, per coverage.
Tether Yield: the ban that built the workaround
The GENIUS Act forbids stablecoin issuers from paying you interest on your tokens.
Tether holds your dollars, parks them in US government IOUs, and keeps the interest — billions a year. You hold the token. You get nothing.
Before the ban, a competitor could have attacked that: offer holders 3%, watch the money move.
Now offering interest is illegal. The law didn't just spare Tether's margin. It fenced it.
This week, Tether showed what the winner does with the yield it keeps: a $400 million lending fund with credit firm Fasanara, wired to run on stablecoin rails.
Not a product that pays you. A product that deploys the money you lent Tether for free.
Related storylines
- GENIUS Act stablecoin regulationGENIUS Act stablecoin regulation tightening Tether compliance
4 sources
- Tether pushes into private credit with $400 million fund with Fasanara · coindesk.com · T1
- Tether and Circle control 85% of stablecoin supply as market concentration stays near record highs · cryptobriefing.com · T2
- Tether launches private credit fund in effort to boost stablecoin use · ft.com · T1
- Tether Is Building Yield Infrastructure Around the GENIUS Act’s Interest Ban – and It Is Not Alone · forkast.news · T2