Tether co-founder Reeve Collins is partnering with Chinh Chu, a former Blackstone executive and founder of CC Capital, to raise $1 billion for the launch of a publicly traded crypto reserve fund. The initiative, conducted through the Special Purpose Acquisition Company (SPAC) M3-Brigade Acquisition V Corp (MBAV.U), seeks to create a long-term institutional investment vehicle in the digital asset space.

The fund will focus on a diversified portfolio of leading cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), and Solana (SOL), in an effort to move beyond speculative trading and toward stable, long-horizon digital asset exposure. By adopting a SPAC structure, the initiative aims to fast-track its market entry and provide transparent access to the fund via public markets.

Collins, best known for co-founding Tether—the stablecoin issuer that helped kickstart the global stablecoin market—is leveraging his industry knowledge to build an investment product that resonates with institutional investors. Partner Chinh Chu brings his expertise in capital markets and strategic acquisitions to the venture, with Cantor Fitzgerald providing support for the fundraising process.

“We’re creating a vehicle that can provide institutional-grade exposure to the most resilient assets in the crypto ecosystem,” Collins stated. “This is about long-term confidence and bridging the gap between traditional finance and digital assets.”

The SPAC structure, while expedient, also brings regulatory scrutiny and investor diligence. However, its use signals growing confidence in crypto’s maturation as a serious asset class. The pairing of legacy financial leadership with crypto-native vision is viewed as a key differentiator.

This move comes at a time when institutional interest in crypto is steadily increasing. Despite regulatory headwinds in the United States and volatile market conditions, asset managers, hedge funds, and family offices have continued to explore avenues to gain exposure to digital assets. A fund that emphasizes stability, transparency, and long-term performance could serve as a critical entry point for those hesitant to engage with more volatile crypto instruments.

The fund also positions itself as a potential solution for treasuries and large institutions looking for crypto allocation without the complexities of self-custody, wallet management, or exchange risk. By offering public-market access to vetted digital assets, Collins and Chu aim to unlock a new tier of crypto adoption focused on trust, compliance, and structured growth.

If successful, the fund could serve as a blueprint for future digital asset reserve products, combining the regulatory clarity of public markets with the growth potential of decentralized finance. It would also mark one of the largest SPAC-backed initiatives in the crypto sector to date.

Negotiations for the $1 billion raise are ongoing and may be subject to market conditions and investor demand. However, the early involvement of seasoned financial players signals that institutional infrastructure for digital assets is entering a new phase of maturity—one that could redefine how crypto capital is formed and deployed.