Brevan Howard Digital is reportedly launching a stablecoin-focused portfolio as part of its expansion strategy, according to Financial News.
• The firm's assets have reportedly fallen below $2 billion after a challenging 2025, prompting tighter risk controls.
Brevan Howard Digital, one of the world's largest institutional crypto hedge funds, is reportedly repositioning its investment strategy after a turbulent 2025.
The fund is considering a new strategy after suffering heavy losses last year. This was alongside leadership changes and a decline in assets under management.
According to a Financial News report citing people familiar with the matter, the firm's digital asset division is broadening its investment strategy to include opportunities across the stablecoin ecosystem.
What is Brevan Howard's New Digital Assets Strategy
Since its launch in 2021, BH Digital is Brevan Howard's dedicated digital asset investment business. It provides institutional investors with exposure across cryptocurrencies, blockchain infrastructure, venture investments, and digital asset trading strategies. The platform already describes its approach as a diversified multi-strategy model supported by institutional-grade risk management and a global investment team on its website.
The reported shift comes months after BH Digital recorded its worst year since launch.
According to the last Financial Times report, BH Digital's assets under management, which once peaked at around $2.5 billion, have fallen to below $2 billion following last year's losses, despite continued investor inflows. The fund lost nearly 30% in 2025, hurt by the collapse of Mantra's OM token and weaker venture investments,
Under new Chief Investment Officer Chris Rayner-Cook who heads the fund's crypto treasury's solutions, the firm has reportedly tightened risk controls. It has now returned to modest positive performance in recent months.
BH Digital's interest in the stablecoin ecosystem has also become evident through its recent investments. Last week, partner Colleen Sullivan announced the fund's backing of Augustus, a startup building a "Global Dollar Bank" on stablecoin rails.
Explaining the investment, Sullivan said stablecoins have enabled U.S. dollars to move "24/7/365," while traditional banking infrastructure remains constrained by banking hours and legacy payment systems. She said Augustus aims to rebuild banking on stablecoin rails with AI integrated from the start. It highlights BH Digital's conviction that blockchain-based payments represent the next evolution of financial infrastructure.