Cantor Fitzgerald has teamed up with financial giants SoftBank, Tether, and Bitfinex to launch a $3 billion bitcoin investment firm named 21 Capital, according to sources familiar with the development. This bold initiative signals a powerful shift in traditional finance’s embrace of digital assets, particularly Bitcoin, which continues to dominate as the flagship cryptocurrency.
The firm, designed to act as a consolidated bitcoin holding vehicle, will aim to attract institutional investors seeking secure and scalable exposure to bitcoin. The formation of 21 Capital demonstrates how legacy financial institutions have moved beyond cautious exploration and now aggressively position themselves as active players in the crypto economy.
The Founding Partners and Their Roles
Cantor Fitzgerald, a New York-based financial services firm known for its dominance in fixed-income trading and real estate, leads the formation of 21 Capital. The company brings regulatory expertise, institutional credibility, and a vast network of high-net-worth clients.
SoftBank, the Japanese multinational conglomerate, has pledged $900 million to the new venture. With its reputation for backing high-growth tech firms, SoftBank enters the crypto infrastructure space with an eye on long-term value creation. Its interest lies in helping 21 Capital scale rapidly and access international markets.
Tether, the issuer of the world’s most widely used stablecoin (USDT), will contribute a substantial $1.5 billion in initial capital. Tether’s involvement brings liquidity, deep knowledge of the blockchain landscape, and massive transactional infrastructure. Bitfinex, a crypto exchange closely affiliated with Tether, will provide exchange support and custody services, helping 21 Capital navigate crypto-specific complexities.
Together, these players have formed a powerhouse capable of influencing the trajectory of crypto investing at an institutional level.
Why Now? Timing and Market Dynamics
The timing of 21 Capital’s launch aligns with a resurgent bull market in cryptocurrencies, especially Bitcoin, which recently crossed $94,000. Investor sentiment has flipped bullish after months of sideways trading, largely due to increasing regulatory clarity in the U.S., strong macroeconomic signals, and growing acceptance of Bitcoin as a strategic asset.
The crypto market has matured significantly over the past year. The approval of spot Bitcoin ETFs in the United States earlier this year opened the door for large financial institutions to offer bitcoin exposure without requiring direct crypto management. This move legitimized Bitcoin in the eyes of wealth managers, pension funds, and conservative asset allocators.
21 Capital steps into this context, offering a secure and professionally managed way to hold Bitcoin. The firm plans to differentiate itself by offering multi-tiered investment vehicles, including spot bitcoin exposure, custody services, and potentially bitcoin-backed lending products in the future.
Investment Strategy and Product Suite
21 Capital will initially focus on buying and holding bitcoin as a core strategy. The firm will structure its investments similarly to a closed-end trust, allowing high-net-worth individuals and institutional investors to gain exposure to bitcoin without directly managing private keys or dealing with exchanges.
The firm also plans to launch multiple fund variants:
-
Institutional Trusts with daily NAV calculations
-
Retail-accessible ETFs, pending regulatory approval
-
Bitcoin Yield Funds, offering interest income from institutional lending pools
-
Bitcoin-backed derivatives, including call and put strategies for risk management
Unlike traditional ETFs or passive crypto trusts, 21 Capital will offer direct client support, on-chain transparency, and insured cold storage options to boost investor confidence.
Strategic Goals and Global Expansion
The founders envision 21 Capital not as a regional fund but as a global digital asset holding company. The firm will establish headquarters in New York, Singapore, and Zurich, targeting North American, Asian, and European markets simultaneously.
Through its partnership with SoftBank, 21 Capital will gain access to Asian investment networks, sovereign wealth funds, and fintech platforms. Tether and Bitfinex will facilitate on-chain operations, including liquidity provisioning, staking, and wallet security.
Cantor Fitzgerald will handle all regulatory compliance, investor onboarding, and fund administration, leveraging its decades of experience in capital markets.
The firm expects to manage over $10 billion in digital assets within three years, focusing first on Bitcoin before expanding to other flagship tokens like Ethereum and Solana.
Institutional Appeal and Risk Management
Institutional investors have long hesitated to embrace bitcoin due to concerns over volatility, security, and regulation. 21 Capital addresses these concerns with a layered risk management framework that includes:
-
Insurance-backed custody through partnerships with crypto custodians like Fireblocks and BitGo
-
24/7 market surveillance and AML compliance tools
-
Blockchain analytics for real-time monitoring of fund allocations and flows
-
Regulatory audits from top firms to ensure transparency and trust
Cantor Fitzgerald’s involvement provides credibility that most crypto-native funds cannot match. Many pension funds and family offices view Cantor as a trusted gatekeeper, which makes 21 Capital an attractive bridge between traditional finance and crypto.
What This Means for the Crypto Industry
The launch of 21 Capital marks another milestone in the ongoing institutionalization of the crypto asset class. With names like SoftBank and Tether investing billions, the move sends a loud signal to global markets that digital assets have graduated from fringe speculation to mainstream financial tools.
The crypto industry will likely benefit from increased liquidity, better price discovery, and more stable inflows as large players allocate capital through regulated, compliant channels.
Moreover, this venture creates competitive pressure on existing crypto funds like Grayscale, Pantera Capital, and Galaxy Digital. These firms must now match the scale, compliance rigor, and investor appeal that 21 Capital offers.
Leadership and Operational Structure
Although the firm has not yet announced its full executive team, sources indicate that Cantor Fitzgerald’s digital assets division head will take the role of interim CEO. SoftBank and Tether will nominate board members to oversee strategy and risk.
The firm plans to run operations with a dual headquarters model, with crypto-focused development teams operating from Singapore and compliance/legal teams stationed in New York.
Recruitment for over 100 roles across engineering, legal, trading, and investor relations has already begun, with job postings appearing across leading fintech platforms.
Future Outlook
The coming months will prove critical for 21 Capital. If the firm succeeds in onboarding major institutional clients, it could redefine how large players approach bitcoin exposure. With the next Bitcoin halving event expected to drive further price appreciation, early participation in 21 Capital could yield strong returns for first movers.
In addition to bitcoin, the firm may soon explore tokenization of real-world assets, yield-generating DeFi protocols, and staking pools, expanding its product suite to align with the evolving digital asset landscape.
Conclusion
21 Capital combines the credibility of legacy finance with the innovation of crypto-native players. With $3 billion in backing from Cantor Fitzgerald, SoftBank, and Tether, the firm is positioned to become a dominant force in institutional bitcoin investing.
Its formation not only reflects the mainstream adoption of crypto but also sets a new benchmark for how traditional finance can engage meaningfully—and profitably—with the world of digital assets.
As bitcoin breaks new price records and global interest surges, 21 Capital offers the infrastructure, trust, and strategy that institutions need to participate confidently in the crypto revolution.
