Cantor Fitzgerald is teaming up with Tether, SoftBank, and Bitfinex to launch 21 Capital — a $3 billion Bitcoin investment vehicle — amid growing institutional appetite for crypto under the Trump administration.
According to a report by the Financial Times, the joint initiative will launch with $3 billion worth of Bitcoin, contributed by Tether, SoftBank, and Bitfinex, and will be modeled after MicroStrategy’s high-profile Bitcoin investment strategy. The new entity, dubbed 21 Capital, reflects a deepening push from Wall Street into crypto as digital assets regain momentum in 2025.
Tether Takes the Lead With $1.5 Billion Bitcoin Contribution
The funding breakdown will see Tether contribute $1.5 billion in Bitcoin, while SoftBank adds $900 million, and Bitfinex provides $600 million, according to FT sources. The structure mirrors MicroStrategy’s approach of converting large Bitcoin holdings into equity-backed public vehicles, offering institutional investors access to BTC via equity exposure.
The investment will reportedly value Bitcoin at $85,000 per coin, and the structure will allow contributions to be converted into shares of 21 Capital at $10 each. The firm is also expected to issue a $350 million convertible bond and raise an additional $200 million via a private placement, bringing the total investment firepower even higher.
Brandon Lutnick Leads Cantor’s Crypto Foray
The venture is spearheaded by Brandon Lutnick, the new chairman of Cantor Fitzgerald and son of Howard Lutnick, who recently joined the Trump administration as Commerce Secretary.
Under Brandon’s leadership, Cantor has deepened its crypto footprint, advising on strategic digital asset deals — including Tether’s $775 million investment in free-speech video platform Rumble.
21 Capital will be launched under Cantor Equity Partners, a special purpose acquisition company (SPAC) that previously raised $200 million. Sources say the parties are preparing to formally announce the deal in the coming weeks, though terms remain subject to change.
Bitcoin Investment Vehicle Follows MicroStrategy Blueprint
The structure and strategy behind 21 Capital echo the playbook pioneered by MicroStrategy, which used a mix of equity issuance and convertible debt to build a massive Bitcoin treasury starting in 2020. MicroStrategy now holds over 530,000 BTC and boasts a market cap north of $9 billion.
By replicating this approach, 21 Capital aims to position itself as a crypto-native institutional entity, giving investors an entry point into Bitcoin’s upside without direct token custody.
Favorable Policy Landscape Underpins Timing
The launch comes amid a resurgence in institutional crypto interest, buoyed by President Donald Trump’s pro-crypto stance and a friendlier regulatory climate. Bitcoin has seen a sharp recovery since Trump’s re-election in November, surging to over $108,000 before settling near $92,000.
The shift in federal policy has triggered a new wave of Wall Street engagement, as firms see regulatory tailwinds opening the door for sophisticated Bitcoin strategies that were previously too risky or uncertain.
Reputational Risks Remain, But Regulatory Winds Are Changing
While the partnership brings together some of crypto’s most influential players, it also revives scrutiny around Tether and Bitfinex, both of which settled investigations with U.S. regulators in 2021. Critics have long questioned Tether’s reserve disclosures, though the firm has maintained its dominance in the stablecoin market.
However, the Trump administration’s pledge to reduce crypto enforcement could ease reputational concerns and give initiatives like 21 Capital a smoother path to public market adoption.
“This is Wall Street’s version of crypto maximalism,” said one institutional investor familiar with the deal. “It’s a bet not just on Bitcoin — but on the entire regulatory environment.”
Conclusion: Wall Street’s Crypto Embrace Deepens
21 Capital may mark a turning point in how legacy financial institutions participate in the digital asset market. By combining the liquidity of public equity, the confidence of crypto-native backers, and the regulatory flexibility of the Trump administration, Cantor Fitzgerald’s entry into Bitcoin could usher in a new era of institutional adoption.If finalized, the deal will represent one of the largest collaborative Bitcoin investment vehicles to date, signaling that the line between traditional finance and crypto continues to blur.
