In a bold move signaling growing institutional confidence in cryptocurrency, Wall Street brokerage Cantor Fitzgerald has announced a major partnership with Tether and SoftBank Group to create a multi-billion dollar bitcoin acquisition vehicle.
The venture, named Twenty One Capital, represents one of the most significant institutional commitments to cryptocurrency in recent years and comes amid expectations of a more favorable regulatory environment under US President Donald Trump’s administration.
Third-Largest Bitcoin Treasury Formed
The ambitious $3.6 billion venture, announced Wednesday, will see blank-check company Cantor Equity Partners (CEP.O) merge into the newly formed Twenty One Capital. The valuation is based on a bitcoin price of approximately $85,000, with Twenty One launching with an impressive portfolio of more than 42,000 bitcoins. This substantial holding immediately positions the venture as the world’s third-largest bitcoin treasury.
“We’re not here to beat the market, we’re here to build a new one. A public stock, built by Bitcoiners, for Bitcoiners,” declared Twenty One Co-Founder and CEO Jack Mallers, a respected figure in cryptocurrency circles who previously led the bitcoin buying platform Strike.
The venture deepens already established ties between Cantor Fitzgerald and Tether, the company behind the world’s largest stablecoin. Brandon Lutnick, son of former Cantor boss and current US Commerce Secretary Howard Lutnick, chairs the Wall Street brokerage and will play a central role in this new cryptocurrency initiative.
Major Financial Commitments From Industry Leaders
The financial structure of the deal reveals significant commitments from all partners. Tether will contribute $1.6 billion worth of bitcoin to the venture, while Bitfinex (a cryptocurrency exchange linked to Tether) and Japanese technology investor SoftBank will provide $600 million and $900 million, respectively.
The consortium plans to raise an additional $585 million through a combination of convertible bonds and equity financing to fund further bitcoin acquisitions.
Twenty One Capital will be majority-owned by Tether and Bitfinex, with SoftBank maintaining a minority ownership position. Upon completion of the deal, the venture will trade on the Nasdaq under the symbol “XXI.”
Following Strategy’s Model
Twenty One Capital appears to be following the highly successful model pioneered by Michael Saylor’s Strategy (MSTR.O), which has seen its market value surge dramatically as cryptocurrency prices rallied following Trump’s election victory. As the largest corporate holder of bitcoin, Strategy held approximately 538,200 units of the cryptocurrency as of April 20, with a market capitalization around $91 billion.
The Trump administration has signaled support for the cryptocurrency industry by promising to ease regulations for digital assets. This shift in the regulatory landscape has fueled optimism among investors and likely contributed to bitcoin’s recent price appreciation, which has gained over 40% in the past six months despite recent volatility.
Long-Standing Tether-Cantor Relationship
The partnership builds upon existing connections between Tether and Cantor Fitzgerald. Notably, Cantor holds the vast majority of the dollar-denominated reserves that Tether maintains for each token it creates. According to Tether CEO Paolo Ardoino, 99% of the U.S. Treasury bills held by Tether are managed through Cantor Fitzgerald.
This close financial relationship, established during Howard Lutnick’s tenure as Cantor’s CEO, provides a foundation of trust for the new venture. The elder Lutnick’s current position as US Commerce Secretary adds an interesting political dimension to the partnership, though he is no longer directly involved with Cantor’s operations.
Vision For Cryptocurrency Expansion
Brandon Lutnick stated that Twenty One Capital was “designed to help investors capture value from bitcoin’s growing global demand and increasing institutional adoption.” This sentiment reflects the venture’s ambitious vision to capitalize on the cryptocurrency’s growing mainstream acceptance.
Shares in Cantor Equity Partners jumped 24% following the announcement, indicating strong market enthusiasm for the venture. The cryptocurrency partnership marks the first in what could be a series of special purpose acquisition company (SPAC) deals led by Cantor Fitzgerald, which has created multiple such vehicles under Brandon Lutnick’s leadership.
As cryptocurrency continues to gain legitimacy in traditional financial circles, Twenty One Capital’s formation represents a significant milestone in the ongoing integration of digital assets into the mainstream investment landscape.