A bold new chapter in institutional crypto investment has begun. Cantor Fitzgerald, a titan of Wall Street, is joining forces with Tether and Japanese tech conglomerate SoftBank Group (TYO:9984) to launch a $3.6 billion crypto venture — a move that underscores the accelerating mainstream adoption of Bitcoin and digital assets.
The new venture, named Twenty One Capital, will be listed on the Nasdaq under the ticker (NASDAQ:XXI). It’s poised to become the third-largest corporate holder of Bitcoin globally, with more than 42,000 BTC already committed at launch.
Institutional Crypto Investment Hits a Milestone
For years, crypto has lived on the edge of the financial system — alternately embraced and dismissed. But this new venture suggests the tide is turning decisively in favor of institutional crypto investment.
Cantor Fitzgerald’s involvement, particularly through its special-purpose acquisition company (SPAC), Cantor Equity Partners (NASDAQ:CEP.O), signals strong Wall Street confidence in Bitcoin’s long-term value. And the collaboration with Tether — the issuer of the world’s largest stablecoin — along with SoftBank’s minority investment, creates a powerful alliance aimed at reshaping the crypto investing landscape.
Twenty One’s CEO, Jack Mallers, put it simply: “We’re not here to beat the market. We’re here to build a new one.”
A Strategic Bitcoin Treasury
Unlike many firms that cautiously add digital assets to their balance sheets, Twenty One Capital is going all in. With more than $1.6 billion in Bitcoin contributed by Tether alone, plus additional contributions from Bitfinex ($600 million) and SoftBank ($900 million), the venture is taking a page out of the playbook used by MicroStrategy (NASDAQ:MSTR).
MicroStrategy currently holds over 538,000 Bitcoin and saw its valuation surge in 2024 as institutional demand for crypto soared, especially following pro-crypto political rhetoric during the U.S. presidential election. Similarly, Twenty One Capital appears set to position itself as a vehicle for Bitcoin-centric growth — both as a hedge against economic uncertainty and a foundation for new financial infrastructure.
Bitcoin, now trading above $94,000, has climbed over 40% in the past six months. While retail investors have driven much of the past decade’s momentum, the current rally is being led by institutions, analysts say.
Matt Mena, a strategist at crypto investment firm 21Shares, explains: “What sets this rally apart is the growing conviction around Bitcoin’s function as a macro hedge. More investors are turning to it not just as a speculative asset, but also as a flight to safety amid rising uncertainty across traditional markets.”
This narrative plays directly into the goals of Cantor’s new venture. With macroeconomic concerns like inflation, geopolitical instability, and fiat currency devaluation lingering, institutional crypto investment is no longer just an alternative — it’s becoming a necessity.
The Tether-Cantor Nexus
The deal also sheds light on the long-standing relationship between Cantor Fitzgerald and Tether. According to Tether CEO Paolo Ardoino, 99% of Tether’s U.S. Treasury bill reserves — used to back its USDT stablecoin — are held with Cantor. That deep trust is now being extended to this ambitious new venture.
“Bitcoin is one of the only truly decentralized, immutable, and censorship-resistant assets,” Ardoino said. “Its role as the foundation of a new financial system is inevitable.”
The formation of Twenty One Capital could very well mark the beginning of that new financial system — one led not just by tech visionaries, but by established financial powerhouses embracing institutional crypto investment on a global scale.
Final Thoughts
Twenty One Capital is more than just a bold bet on Bitcoin — it’s a clear sign that institutional crypto investment is entering a new phase. With the backing of Cantor Fitzgerald, Tether, Bitfinex, and SoftBank, the venture is uniquely positioned to redefine how traditional finance approaches crypto.
If successful, it won’t just be another crypto company on the Nasdaq — it will be a blueprint for future digital asset investment at scale.
Featured Image: Freepik
