Former Blackstone executives teamed up with Tether founders to raise $1 billion to create multi-token crypto fund

The Zhitong Finance App learned that the former Blackstone Group deal maker and the co-founder of stablecoin giant Tether Holdings SA are teaming up to raise $1 billion for a listed crypto fund aimed at building a diversified digital asset portfolio.

This SPAC (Special Purpose Acquisition Company) M3-Brigade Acquisition V Corp., which is supported by both parties, is responsible for this fundraising. According to people familiar with the matter, the fund will hold a variety of tokens including Bitcoin, Ethereum, and Solana.

As of press release, M3-Brigade's stock price fell 12% to $11.04, the biggest one-day decline since September last year, but the increase remained around 10% during the year.

Former US Secretary of Commerce Wilbur Ross and Binance Board Chairman Gabriel Abed will serve as vice-chairmen, according to people familiar with the matter. Another source added that Jamie Leverton, the former CEO of Hut 8 Mining, will be the fund's CEO. It is reported that the fund is also planning to change its name.

People familiar with the matter said that the fund-raising process is still ongoing, and details, including the $1 billion target, may be adjusted. They revealed that agencies such as Cantor Fitzgerald LP are providing consulting services for the deal.

According to an announcement issued in May, Tether co-founder Reeve Collins and an entity affiliated with CC Capital, an investment company founded by Chinh Chu (Chinh Chu), a former Blackstone co-head of private equity, acquired M3-Brigade's sponsor interests in the same month. The fund said at the time that it would focus on digital asset-related transactions.

This multi-token strategy is in stark contrast to the “Bitcoin Supremacy” advocated by Japan's MetaPlanet and MicroStrategy — the latter have already hoarded $60 billion worth of Bitcoin. Institutions like SharpLink Gaming focus on Ethereum.

The reason behind the establishment of the fund is that US President Trump signed an executive order in March of this year requiring the government to establish Bitcoin reserves and an independent multi-token inventory. According to regulations, in addition to Bitcoin, other tokens in the US reserve can be sold under specific conditions.

Collins launched the predecessor of Tether USDT, was its CEO in the early 2010s, and currently serves as the chairman of the yield stablecoin protocol Pi. Before leaving his job in 2015, Zhu Qin was Blackstone's longest-serving deal broker and led several SPAC projects, including the acquisition deals of Getty Images and Utz Brands.