Cantor Fitzgerald is preparing for a major move into the crypto market. The well-known financial firm is teaming up with big names like SoftBank, Tether, and Bitfinex to launch a new crypto investment venture. The deal, valued at nearly $3 billion, comes at a time when the U.S. is showing more support for cryptocurrency under President Donald Trump.
A Bold Step by Brandon Lutnick
Brandon Lutnick, the son of U.S. Commerce Secretary Howard Lutnick, is leading the project. Brandon took over as chair of Cantor Fitzgerald when his father joined the Trump administration as the top trade official.
Now, Brandon is partnering with crypto giants to form a powerful investment vehicle called Cantor Equity Partners. This move shows his ambition to be at the center of a new wave of crypto investments.
The new venture aims to follow in the footsteps of MicroStrategy. That company became famous for buying large amounts of Bitcoin. MicroStrategy even issued stock and debt just to invest in the digital currency. Today, it holds tens of billions of dollars in Bitcoin and has a market cap of $91 billion.
Brandon wants to do something similar. His team plans to gather large amounts of Bitcoin from their partners and create a new company called 21 Capital. The idea is to turn Bitcoin investments into public shares, just like MicroStrategy did.
How the $3 Billion Will Be Raised
The plan is to raise a total of $3 billion in Bitcoin from major players:
- Tether will contribute $1.5 billion.
- SoftBank will add $900 million.
- Bitfinex will put in $600 million.
Tether and Bitfinex share a parent company and have many of the same executives.
In January 2025, Cantor Equity Partners raised $200 million to get things started. Now, they plan to raise more funds to grow the new firm:
- A $350 million convertible bond
- A $200 million private equity placement
All this money will be used to buy even more Bitcoin. Later, the original Bitcoin investors will receive shares in 21 Capital. These shares will be valued at $10 each, with Bitcoin priced at $85,000 per coin in the deal.
Sources say the deal could be announced in the coming weeks. However, nothing is final yet. The numbers might change, and there is still a chance the deal could fall through.
Despite the risks, the move signals growing confidence in the crypto market, especially after Trump’s re-election. His administration has promised more support for crypto trading and investments.
Past Legal Troubles for Tether and Bitfinex
Tether and Bitfinex have both faced legal challenges in the past. In 2021, they settled investigations with both the New York Attorney General and the Commodity Futures Trading Commission (CFTC). The issues involved their transparency and financial practices.
Despite these problems, both companies continue to be major players in the crypto world. Their support of this new venture shows they are ready to take bold steps into the public market again.
Bitcoin’s Recent Performance
Bitcoin has had a wild ride in recent months. After Trump’s election win in November 2024, the price of Bitcoin soared to around $106,000 — a new all-time high. It has since dropped slightly but remains strong, trading at around $92,000 per coin.
Meanwhile, MicroStrategy’s stock has fallen about 20% from its peak in November. However, the company’s massive Bitcoin holdings still give it strong value and attention from investors.
Cantor’s Growing Focus on Crypto
This isn’t Cantor Fitzgerald’s first move into the crypto world. The firm previously advised on Tether’s $775 million investment in Rumble, a right-wing video platform. The new $3 billion deal is just one of several crypto-focused ventures it is exploring.
Cantor has also launched other special purpose acquisition companies (SPACs) led by Brandon Lutnick. These are still looking for potential deals. In addition, Cantor has helped other firms launch their own SPACs in recent months.
This shows Cantor’s strong belief in the future of cryptocurrency and its willingness to take the lead.
What Comes Next?
The crypto industry is changing fast. Big institutions are starting to see it as a serious asset class. With the U.S. government becoming more crypto-friendly, many investors think now is the time to act.
This $3 billion deal could mark a turning point for crypto on Wall Street. If successful, it may inspire other firms to create similar ventures.
Still, the market remains risky. Bitcoin prices are volatile, and regulators are watching closely. The past problems of Tether and Bitfinex may raise concerns. But with major players like SoftBank and Cantor involved, the project is gaining real attention.
Final Thoughts
Brandon Lutnick and his team are betting big on crypto. Their plan to launch 21 Capital with backing from Tether, Bitfinex, and SoftBank shows a bold vision. By following the path set by MicroStrategy, they hope to create a publicly listed crypto giant.
If Bitcoin remains strong and the U.S. stays friendly to crypto, this deal could shape the next chapter of digital finance.
For now, the world is watching, and the crypto community is buzzing with anticipation.
