Cantor Fitzgerald is launching a major cryptocurrency-focused venture in collaboration with Tether and Japan’s SoftBank Group, aiming to capitalize on growing interest in bitcoin, particularly under a political climate shaped by U.S. President Donald Trump’s pro-crypto stance, Reuters news report said.
The initiative involves the merger of Cantor Equity Partners, a blank-check company, into a newly created entity named Twenty One Capital. This new firm will hold more than 42,000 bitcoins at launch, giving it a market value of approximately $3.6 billion based on bitcoin’s price nearing $85,000 at the time of the announcement. That size makes it the third-largest bitcoin treasury in the world, trailing only the holdings of companies like MicroStrategy, now known as Strategy, which has seen its market value soar amid bitcoin’s resurgence.
The formation of Twenty One Capital deepens existing relationships between Cantor Fitzgerald and Tether, the issuer of the world’s most widely used stablecoin. This relationship dates back to the tenure of Howard Lutnick, the former CEO of Cantor and father of Brandon Lutnick, who now chairs the brokerage and whose influence continues through this venture.
Tether currently holds a significant portion of its U.S. Treasury bill reserves with Cantor, a financial tie that further solidifies their partnership. According to Tether CEO Paolo Ardoino, 99 percent of those holdings are kept with Cantor, underlining a foundation of mutual trust and financial cooperation.
Jack Mallers, co-founder and CEO of Twenty One, framed the new entity not merely as an investment vehicle but as a platform built by and for bitcoin advocates. He emphasized the company’s ambition to carve out a new market rather than compete in existing ones. Twenty One is designed to mirror the success of Strategy, whose aggressive bitcoin acquisition strategy has made it a standout in the crypto industry.
Tether will contribute $1.6 billion worth of bitcoin to the venture, with Bitfinex and SoftBank adding $600 million and $900 million, respectively. The company also plans to raise an additional $585 million through a mix of convertible bonds and equity funding.
While bitcoin has recently gained more than 40 percent over six months, it has shown volatility, declining alongside broader markets during renewed trade tensions initiated by Trump. Despite this, analysts like Matt Mena from 21Shares argue that bitcoin is increasingly seen as a digital store of value amid global uncertainty.
Once finalized, Twenty One Capital will begin trading on Nasdaq under the ticker “XXI,” marking another milestone in the deepening convergence of traditional finance and the crypto ecosystem.
InfotechLead.com News Desk
