Wall Street brokerage Cantor Fitzgerald is joining forces with stablecoin issuer Tether and Japan’s SoftBank Group to launch a massive new cryptocurrency venture — and they’re betting big on bitcoin’s growth under a potential second term for U.S. President Donald Trump.
What’s the deal?
The partnership was announced Wednesday and involves a merger between Cantor Equity Partners — a blank-check company — and a new firm called Twenty One Capital. Once the deal closes, the combined entity will hold more than 42,000 bitcoins, making it the world’s third-largest bitcoin treasury, according to Twenty One.
Based on bitcoin’s current value near $85,000, the venture is valued at $3.6 billion.
Who’s involved?
- Cantor Fitzgerald, a brokerage chaired by Brandon Lutnick (son of former Cantor CEO and current U.S. Commerce Secretary Howard Lutnick)
- Tether, the company behind the world’s largest stablecoin
- SoftBank Group, the Japanese tech investment giant
- Bitfinex, a crypto exchange linked to Tether
What’s the goal?
The venture is modeled after Michael Saylor’s Strategy, a firm that became one of the most prominent corporate holders of bitcoin. Its market value surged following Trump’s election victory in 2024, amid hopes for crypto-friendly regulation.
“We’re not here to beat the market, we’re here to build a new one. A public stock, built by Bitcoiners, for Bitcoiners,” said Twenty One Co-Founder and CEO Jack Mallers.
The group believes interest in digital assets — especially bitcoin — will grow if Trump returns to office and follows through on promises to ease crypto regulation.
Where’s the money coming from?
Here’s how the investment is structured:
- Tether is contributing $1.6 billion in bitcoin
- Bitfinex is putting up $600 million
- SoftBank is investing $900 million
- The companies will also raise $585 million in additional capital through convertible bonds and equity financing
Why is this important?
Bitcoin is increasingly seen as a hedge against global economic instability. Though it surged over 40% in the past six months, it dropped earlier this month during a broader selloff triggered by Trump’s trade war announcements.
“Macro and global conditions highlight the need for a digital, next-generation store of value,” said Matt Mena, crypto research strategist at 21Shares. “Bitcoin is stepping into that role.”
Still, gold has been the safer bet in recent weeks, hitting record highs while bitcoin’s momentum has slowed.
How do Tether and Cantor fit together?
Tether and Cantor have deep ties going back to Howard Lutnick’s tenure as Cantor’s CEO. In fact, Cantor holds the vast majority (99%) of the U.S. Treasury bills that back Tether’s dollar reserves, according to Tether CEO Paolo Ardoino, speaking to Reuters last month.
Tether and Bitfinex will jointly hold a majority stake in Twenty One, while SoftBank will have a minority share.
Once finalized, Twenty One will be listed on the Nasdaq under the ticker symbol “XXI.”
