Arras Kannagi Basil and Tommy Regiori Wilkes
(Reuters) – Cantor Fitzgerald launched a Crypto venture with Tether and Japanese technology investor Softbank Group to buy Bitcoin, highlighting the rise in institutional adoption of former asset classes.
The deal was announced Wednesday, with blank check vehicle Cantor Equity Partners treasured $3.6 billion venture Twenty One Capital.
It deepens the relationship between the Wall Street brokerage, chaired by the former Cantor boss and the current U.S. Secretary of Commerce, Brandon Rutnick, and the Tether, behind the world’s biggest stubcoin.
Twenty One is launched for over 42,000 Bitcoin, making it the third largest Bitcoin Ministry in the world.
“We’re not here to win the market, we’re here to build something new. We have public stocks built by Bitcoiner for Bitcoiner,” said Jack Mallers, co-founder and CEO of Twenty One.
The venture may try to replicate the success of its Bitcoin acquisition strategy, which saw its market value surge at the end of last year, as crypto prices jumped following Donald Trump’s US presidential election victory. Trump has pledged to support the crypto industry by relaxing regulations on digital assets.
Bitcoin’s biggest corporate holder Strategy owned 538,200 units of the world’s largest cryptocurrency as of April 20th.
Analysts are also promoting Bitcoin, which is currently trading at $94,166, as a hedge against global economic risk. He has earned over 40% in the last six months.
“As macro and global terms continue to emphasize the need for digital value, the next generation of stores, Bitcoin is increasingly stepping into its role,” said Matt Mena, Crypto Research strategist at 21Shares.
“What sets this rally stands out is the growing confidence about Bitcoin’s function as a macro hedge. More investors are turning to it not only as a speculative asset, but also as a flight to safety amid increasing uncertainty across traditional markets.”
Tether Cantter Tie
Twenty One is majority owned by Tether and Cryptocurrency Exchange Bitfinex. SoftBank has a small number of ownership.
Tether and Cantor have years of connection to when Howard Lutnick was the boss of a brokerage.
In Cantor, many dollars in Tether hold many of the religious reserves. Tether says he has for every token he creates for Stablecoin.
Of the US Treasury bills held by Tether, 99% will be held in Cantor, Tether CEO Paolo Ardoino told Reuters last month.
“Bitcoin is one of those truly decentralized, immutable, and censor-resistant assets, and its role as the basis for the new financial system is inevitable,” Ardoino said.