3 Things That Changed Alternative Finance in Q4 📊

Welcome to Advance Genie, weekly newsletter that helps operators in highly stigmatized industries find alternative financing methods.

The fourth quarter brought three significant shifts.

A stablecoin issuer now holds more US government debt than Germany, private credit closed a $2.4 billion single deal in an emerging market, and 70% of major jurisdictions activated digital asset regulations.

Here's exactly what happened.

📬 Enjoying Advance Genie?

We're a small newsletter trying to reach/help founders and operators in high-friction industries.

If you find this useful, please forward this edition to someone who might benefit - a fellow founder, a friend, colleague, or anyone interested in these topics.

Thank you for helping us. 🙏

Tether Now Holds $135 Billion in US Treasuries

The world's largest stablecoin issuer has become the 17th largest holder of US Treasury bonds globally.

Tether reported that its Treasury holdings reached $135 billion, surpassing countries including Germany, Saudi Arabia, and South Korea.

The company's total reserves of $181.2 billion back $174.4 billion in liabilities, with additional holdings of $12.9 billion in gold and $9.9 billion in Bitcoin.

CEO Paolo Ardoino reported over $10 billion in net profits through Q3 2025, with the platform now serving more than 500 million users worldwide.

The Treasury position grew rapidly in 2025, rising from $65 billion in Q1 to $135 billion by September as Tether aligned with US GENIUS Act requirements for stablecoin reserves in low-risk assets. This strategy both increases liquidity and generates interest earnings on the large Treasury holdings.

IMF Analyzes Stablecoin Infrastructure

The International Monetary Fund published detailed analysis on December 4 examining stablecoins' role in global payments.

The report notes that the market capitalization of the two largest stablecoins tripled since 2023 to reach a combined $260 billion, with trading volume hitting $23 trillion in 2024.

Asia leads in stablecoin activity by volume, though Africa, the Middle East, and Latin America show the highest adoption rates relative to GDP. The IMF acknowledges that stablecoins could enable faster and cheaper international payments, particularly for remittances where traditional systems can cost up to 20% of amounts sent.

"Being a single source of information, blockchains can greatly simplify the processes linked with cross-border payments and reduce costs," the IMF stated, while also noting risks around currency substitution and capital flow management in emerging markets.

When a stablecoin company holds more US Treasuries than most nations and the IMF dedicates institutional analysis to the payment infrastructure, operators using these rails are no longer working with experimental technology.

Saudi Fintech Closes $2.4 Billion Private Credit Deal

One of the Gulf Cooperation Council's largest ever private credit transactions closed in September, demonstrating that alternative capital structures work at institutional scale.

Tamara, a Saudi Arabian buy-now-pay-later platform, secured an asset-backed facility of up to $2.4 billion from Goldman Sachs, Citi, and Apollo funds. The deal included $1.4 billion funded immediately, with an additional $1 billion available over three years. It refinanced and significantly upsized a prior $500 million facility.

Founded in 2020, Tamara serves over 20 million customers across 87,000 merchants. The company raised $340 million at a valuation exceeding $1 billion in late 2023.

"This landmark facility accelerates our growth trajectory, empowering us to invest further in building the most customer-centric financial super-app on earth," said CEO Abdulmajeed Alsukhan.

The transaction caught attention across the region.

"The Tamara deal stood out as a company in the fintech space using advanced and sophisticated asset-backed funding solutions," said Sharif Eid, head of private credit at Amwal Capital Partners, in a December report from ION Analytics analyzing regional private credit trends.

Regional Momentum Building

The ION report identified significant private credit activity across Central and Eastern Europe, Middle East, and Africa throughout 2025. Healthcare, education, and infrastructure emerged as primary sectors attracting capital.

October deals included GCC-focused real estate investor Arzan Investment Management securing financing from Oaktree Capital Management, while UAE-based Property Finder signed a $250 million facility with Ares.

In Africa, TLG Capital raised a $200 million credit fund in September. Enko Capital reached first close on its impact credit fund at $100 million toward a $150 million target.

Poland dominated Central European activity, accounting for 90% of the region's 312 deals since 2020. The largest 2025 transaction saw CVC Credit provide €200 million to cardiology healthcare provider American Heart of Poland in April.

A key trend identified: banks increasingly cooperating with private credit funds rather than competing.

HSBC partnered with private credit firms and arranged Gulf Navigation's sukuk refinancing in November. "In 2026, we aim to be operational with this cooperation and able to offer our financing to bank clients in cases where the bank cannot provide additional financing," said Adam Pankowski, partner at Deloitte.

Deal sizes are growing, with large private credit firms partnering with banks in structures more commonly seen in developed markets. For borrowers excluded from traditional bank financing, seeing $2.4 billion single deals structured against receivables and payment flows demonstrates the model's viability at scale.

70% of Major Jurisdictions Activated Digital Asset Frameworks

Regulatory clarity accelerated significantly in 2025, with most major financial centers implementing or advancing comprehensive digital asset regulations.

TRM Labs analyzed crypto policy developments across 30 jurisdictions representing over 70% of global crypto exposure.

The report found that over 70% of reviewed jurisdictions progressed stablecoin regulation during the year, while about 80% saw financial institutions announce new digital asset initiatives.

Major Frameworks Now Live

United States: The GENIUS Act, signed July 18, 2025, created the first federal regulatory framework for payment stablecoins. The legislation defines stablecoins as payment tools (not securities), mandates 1:1 backing by liquid assets, and requires regular audits. Implementation regulations are due by July 2026, with the Act taking effect by January 2027.

European Union: MiCA entered active implementation in 2025. As of September, the EU granted 53 licenses under the framework (14 to stablecoin issuers, 39 to crypto asset service providers). Germany leads in licenses issued, followed by the Netherlands and Malta. Many firms operate under transitional periods extending to mid-2026.

Hong Kong: The Stablecoins Ordinance became effective August 1, 2025, requiring licensing from the Hong Kong Monetary Authority for fiat-referenced stablecoin issuers. Full asset-backed reserves and par value redemption guarantees are mandatory. Licensing begins early 2026.

Singapore: The FIMA Act came into full force January 24, 2025, expanding Monetary Authority of Singapore oversight of crypto-derivatives and enabling inspections of entities dealing in digital tokens.

UAE: Dubai's VARA released Rulebook Version 2.0 with new issuance rules and tighter controls. Abu Dhabi's FSRA updated its framework with streamlined processes and expanded scope.

The Financial Action Task Force reported in June that 99 jurisdictions have passed or are progressing legislation implementing the Travel Rule, which requires virtual asset service providers to collect and share identity data for crypto transfers.

Compliance Infrastructure That Matters

TRM's analysis found that virtual asset service providers, the most regulated segment of the crypto ecosystem, show significantly lower rates of illicit activity than the overall ecosystem.

The report noted that North Korea's $1.5 billion Bybit hack exploited unlicensed OTC brokers and unregulated infrastructure, demonstrating how proper oversight reduces risk.

Markets with clear regulation became catalysts for institutional adoption. The pattern is straightforward: jurisdictions that implemented frameworks saw financial institutions enter the space, while those with unclear rules saw institutions remain cautious.

For operators in industries facing systematic banking exclusion, the shift matters because payment and capital infrastructure built outside traditional banks now operates within recognized regulatory frameworks in most major markets. What was experimental in 2023 is regulated and institutional in 2025.

“Alternative” Now Reached Institutional Scale

Stablecoins backed by $135 billion in Treasuries.

Private credit deals at $2.4 billion. And regulatory frameworks active in 70% of major jurisdictions.

The alternative financial infrastructure that excluded industries have been forced to use is no longer alternative. It's institutional.

The data shows it. The question is not whether but WHEN operators will completely adopt it.

How To Get Started Today 👇

Building something bold in a high-friction industry?

In a few guided steps, we’ll map your model to the right financing paths and show exactly what you can expect.

👉 Take the quiz