In a significant move highlighting the growing institutional interest in cryptocurrencies, Cantor Fitzgerald, in collaboration with SoftBank, Tether, and Bitfinex, has announced the formation of a 3.6 billion Bitcoin investment entity named Twenty One Capital. citeturn0news13 This initiative positions Twenty One Capital as the thirdlargest holder of Bitcoin globally, with an initial reserve of 42,000 BTC.
The venture is structured through a reverse merger with Cantor Equity Partners, a specialpurpose acquisition company SPAC led by Brandon Lutnick, son of U.S. Commerce Secretary Howard Lutnick. The investment breakdown includes 1.5 billion in Bitcoin from Tether, 900 million from SoftBank, and 600 million from Bitfinex. Additionally, the entity plans to raise funds via a 385 million convertible bond and a 200 million private equity placement. citeturn0news13
Jack Mallers, known for his work with the payment platform Strike, will head Twenty One Capital. The venture draws inspiration from MicroStrategys Bitcoin investment strategy, aiming to capitalize on the increasing institutional adoption of cryptocurrencies.
This development comes amid a broader procrypto stance from the current U.S. administration. President Donald Trump has expressed support for cryptocurrency adoption, viewing it as a means to enhance the banking system and reinforce the U.S. dollars global position. citeturn0news12
Cantor Fitzgeralds move into the crypto space is not unprecedented. In July 2024, the firm announced plans to launch a Bitcoin financing business, providing leverage to investors holding Bitcoin, with an initial 2 billion in financing. citeturn0search0 This initiative underscores Cantors commitment to bridging traditional finance and digital assets.
The collaboration between Cantor Fitzgerald, SoftBank, Tether, and Bitfinex marks a significant milestone in the integration of cryptocurrencies into mainstream financial markets, reflecting a growing trend of institutional investment in digital assets.