Brandon Lutnick, chairman of Cantor Fitzgerald and son of U.S. Commerce Secretary Howard Lutnick, is leading a significant Bitcoin investment initiative.
According to a recent report by the FT, Lutnick has recently partnered with key players in the crypto / web3 and investment sectors—SoftBank, Tether, and Bitfinex—to establish a $3 billion venture aimed at leveraging a pro-cryptocurrency policy shift under President Donald Trump’s administration.
The venture will operate under a new entity named 21 Capital, which will be seeded with substantial Bitcoin contributions from its partners.
Tether, the issuer of the world’s largest stablecoin USDT, is set to contribute $1.5 billion worth of Bitcoin, while SoftBank, a Japanese investment powerhouse, will provide $900 million, and Bitfinex will add $600 million.
These contributions will be converted into shares of 21 Capital, with Bitcoin valued at $85,000 per coin, reflecting a strategic move to create a publicly traded entity focused on digital assets.
The foundation for 21 Capital was laid earlier this year when Cantor Equity Partners, a special purpose acquisition company (SPAC) led by Lutnick, raised $200 million in January.
This capital will serve as the launchpad for the new firm, which aims to emulate the success of Strategy, a company that transformed itself into a Bitcoin investment powerhouse with a market capitalization exceeding $90 billion.
To further bolster its Bitcoin holdings, 21 Capital plans to raise more capital.
The total additional capital to be raised “at closing is $585 million ($385 million through convertible secured notes + $200 million through common equity PIPE financing).”
This initiative comes at a time when the Trump administration has signaled a more favorable stance toward cryptocurrencies, promising to foster innovation and integrate digital assets into mainstream finance.
The appointment of Howard Lutnick as Commerce Secretary and the selection of Paul Atkins, a crypto-friendly figure, as Securities and Exchange Commission chairman underscore this shift.
These developments have created an optimistic outlook for institutional crypto investments, with Bitcoin trading higher, fluctuating around $92,000 after peaking at just over $109,000 following Trump’s re-election.
Cantor Fitzgerald’s involvement in the crypto space is not new.
The firm has managed Tether’s $134 billion Treasury portfolio since 2021 and advised on its $775 million investment in the video-sharing platform Rumble.
Additionally, Cantor has explored Bitcoin-backed lending programs with Tether, including a proposed $2 billion initiative.
Despite past regulatory challenges for Tether and Bitfinex, which settled investigations with U.S. authorities back in 2021, the current regulatory environment appears a lot more accommodating and progressive, potentially paving the way for 21 Capital’s success.
While the deal is expected to be formalized in the coming weeks, sources caution that it remains subject to change or could be abandoned.
Nonetheless, this venture underscores the growing institutional interest in Bitcoin and potentially positions Cantor Fitzgerald as a key player in the digital assets ecosystem, supported by a more crypto-friendly U.S. policy landscape.