Brandon Lutnick, son of U.S. Commerce Secretary Howard Lutnick and chair of brokerage Cantor Fitzgerald, revealed a multi-billion-dollar acquisition vehicle backed by crypto giants. The brokerage firm is partnering with Tether, SoftBank, and Bitfinex to launch 21 Capital, a crypto acquisition firm backed by $3 billion in Bitcoin. The digital asset acquisition firm also plans to raise additional funds through a $350 million convertible bond and a $200 million private equity placement. 21 Capital will convert the contributions into shares valid at $10 each, pricing Bitcoin at $85,000 per coin. Cantor Fitzgerald collaborates with Tether, SoftBank, and Bitfinex According to unnamed sources, 21 Capital will receive $3 billion in BTC from other digital asset investors and trading firms. The report showed that Tether would contribute $1.5 billion of Bitcoin, while SoftBank and Bitfinex would contribute $900 million and $600 million of the virtual currency. People familiar with the matter revealed that 21 Capital will operate under Cantor Equity Partner, a special purpose acquisition company (SPAC) that raised $200 million in January 2025. The report indicated that the announcement will likely come in the next few weeks, though it highlighted that the deal could still fail and the numbers could change. Lutnick’s crypto structure mirrors the investment strategy of former software company MicroStrategy, which currently holds over $13 billion in BTC assets. Cantor’s model has also helped Strategy garner over 530,000 BTC for $36.4 billion, though its share price has dropped 20% from record highs in November. The new Bitcoin initiative with the crypto giants is part of Cantor Fitzgerald’s broader virtual asset expansion. Since 2021, the firm has managed Tether’s Treasury portfolio and $134 billion of reserves, mainly in U.S. Treasury bills. Cantor Fitzgerald also owns a 5% stake in the stablecoin issuer. According to Fintel data, the brokerage firm currently holds over $5 billion worth of assets across 275 holdings. The brokerage company has previously advised Tether on a $775 million investment in video-sharing platform Rumble. Cantor has also supported the development of a proposed $2 billion BTC-backed lending program in partnership with Tether. Lutnick advances Cantor Fitzgerald’s crypto initiatives The brokerage firm has launched two more SPACs under Brandon Lutnick, with all firms actively seeking opportunities in the cryptocurrency and fintech space. Cantor Fitzgerald has also begun utilizing digital asset platforms maintained by Anchorage Digital and Copper to expand its market infrastructure. Howard Lutnick was the CEO of Cantor for 40 years but stepped down last month to run President Donald Trump’s Commerce Department and left his sons in charge. Brandon Lutnick took over as chairman of the brokerage, while Kyle Lutnick assumed the vice chairman position. Howard mentioned at Bitcoin 2024 in Nashville that the brokerage aimed to build “an incredible platform” to support Bitcoin investors’ financing needs. “We are excited to help unlock Bitcoin’s full potential and continue bridging the gap between traditional finance and digital assets.” – Howard Lutnick , U.S. Commerce Secretary. Cantor’s initiative entered the market at a time when Bitcoin was exchanging hands for around $92,000 after peaking at $106,000 in the wake of President Trump’s re-election. Trump had promised to be the “crypto president,” the one who would popularize their mainstream use in the U.S. Trump argued that digital assets can improve the banking system and increase the dominance of the U.S. dollar. The Securities and Exchange Commission chairman, Paul Atkins, is also expected to fast-track crypto regulatory clarity, as well as establish policies that promote digital asset innovation. Cryptopolitan Academy: Want to grow your money in 2025? Learn how to do it with DeFi in our upcoming webclass. Save Your Spot
