Cantor Teams Up with Tether, SoftBank for $3.6 Billion Bitcoin Venture: Report

Cantor Fitzgerald has partnered with stablecoin issuer Tether and Japan’s SoftBank Group to launch a new bitcoin-focused venture valued at $3.6 billion, according to a report by Reuters.

The newly formed entity, Twenty One Capital, will be created through a merger with Cantor Equity Partners, a blank-check firm. The venture is set to debut with more than 42,000 bitcoins, which would make it the third-largest corporate holder of bitcoin globally, based on current data shared in the Reuters report. It underscores the growing institutional confidence in the cryptocurrency market.

The increasing connections between crypto companies and traditional Wall Street brokerages are demonstrated by this endeavor. The project is being launched amid growing optimism that the regulatory environment for digital assets in the U.S. may become more favorable especially if former President Donald Trump returns to office and eases restrictions on cryptocurrencies, Reuters noted.

According to the Reuters , the venture aims to follow a strategy similar to that of MicroStrategy, the largest corporate holder of bitcoin, which has seen significant growth in market capitalization due to its aggressive accumulation of the digital asset.

Jack Mallers, CEO of Twenty One Capital, shared with Reuters that the company’s objective goes beyond simply outperforming the market—it aims to create an entirely new one. He envisions a public stock “built by Bitcoiners, for Bitcoiners.”

Twenty One Capital’s fundraising structure comprises a $1.6 billion bitcoin contribution from Tether, with crypto exchange Bitfinex and SoftBank investing $600 million and $900 million, respectively. In addition, the companies plan to raise $585 million through a mix of equity and convertible bond financing.

Tether and Bitfinex will own the majority of Twenty One Capital, with SoftBank holding a tiny interest. Once the merger is finalized, the company will list on the Nasdaq under the ticker symbol ‘XXI’, Reuters stated.

The move also underscores Cantor Fitzgerald’s long-standing relationship with Tether. As per Reuters, Cantor holds the bulk of Tether’s U.S. Treasury reserves, which back the issuance of its widely used stablecoin.

As bitcoin emerges as a possible hedge against global financial volatility, this endeavour represents a crucial step toward bringing together institutional finance and crypto-native enterprises to change digital asset markets.