Cantor Fitzgerald has announced a major move into the digital asset space by partnering with Tether, SoftBank, and Bitfinex to launch 21 Capital, a $3 billion Bitcoin-backed acquisition firm.
The venture marks a bold step in the brokerage’s growing involvement in cryptocurrency investments and aims to position it among the key players in the industry.
New Bitcoin acquisition vehicle backed by leading firms
21 Capital functions as a digital acquisition company by holding Bitcoin worth $3 billion which key figures in cryptocurrency marketplace contribute. The new firm receives a total of $3.5 billion from Tether and SoftBank and Bitfinex through Bitcoin donations of $1.5 billion and each capital supply of $900 million and $600 million. The new firm plans to enhance its stock value through issuing bonds worth $350 million and securing $200 million in private equity.
The share issuance at $10 per unit through 21 Capital will take place while valuing each Bitcoin at the rate of $85,000 during conversion. The new venture operates through Cantor Equity Partner which raised $200 million funds when it launched in 2025. The formal declaration regarding this transaction is estimated to materialize within upcoming weeks yet final conditions might alter during current negotiations.
Cantor expands role in digital finance
Brandon Lutnick, chairman of Cantor Fitzgerald and son of U.S. Commerce Secretary Howard Lutnick, is leading this new effort. The venture reflects the firm’s strategy to expand into the virtual asset market and mirrors the investment path taken by MicroStrategy. Cantor’s approach has helped it accumulate over 530,000 BTC worth $36.4 billion, though it has recently faced a 20% decline in its share value from its previous peak.
Since 2021 Tether has built a prolonged business alliance with Cantor Fitzgerald through which the firm oversees $134 billion worth of funds while holding a 5% equity stake in Tether. A strategic partnership between Tether enabled the company to secure $775 million from the firm to buy Rumble as well as establish a $2 billion Bitcoin-backed loan facility.
Leadership transition and broader vision
U.S. Commerce Secretary became the latest appointment for Howard Lutnick after his four-decade long tenure as leader of Cantor Fitzgerald. Brandon Lutnick acts as chairman of the brokerage whereas Kyle Lutnick serves as vice chairman alongside him. The firm has introduced two more SPACs under their current leadership concentrating on crypto and fintech investments. Cantor is expanding its digital infrastructure through partnerships with Anchorage Digital and Copper. The firm continues to align its strategy with the rising demand for Bitcoin investment tools amid market optimism driven by President Trump’s re-election and policy promises to support crypto adoption.