Cantor plans $3B crypto venture with SoftBank, Bitfinex and Tether: Report

Brandon Lutnick, chair of investment banking firm Cantor Fitzgerald, is reportedly partnering with SoftBank, Tether and Bitfinex to create a $3 billion crypto acquisition company.

Lutnick and the consortium hope to create a publicly listed crypto acquisition company to capitalize on the market under crypto-friendly US President Donald Trump, and replicate Michael Saylor’s company Strategy, the Financial Times reported on April 23, citing three people who have been briefed on the plan.

Cantor Equity Partners raised $200 million in January for the new firm called 21 Capital. At the same time, stablecoin issuer Tether will fork out $1.5 billion in Bitcoin (BTC), Japanese investment holding firm Softbank Group will contribute $900 million, and the crypto exchange Bitfinex will add $600 million.

Lutnick’s new venture hopes to raise another $350 million in convertible bonds and a separate $200 million private equity placement to buy additional Bitcoin.

Eventually, Tether, Bitfinex, and SoftBank’s Bitcoin investments will be converted into 21 Capital shares, with the value of the Bitcoin locked in at $85,000 per coin and shares costing $10 a pop.

However, the deal hasn’t been finalized yet, and some details could change before it’s officially announced. Brandon Lutnick was named chair of Cantor Fitzgerald when his father, Howard Lutnick, stepped down to become the US Secretary of Commerce.

Cantor Fitzgerald, SoftBank, Tether and Bitfinex didn’t immediately respond to Cointelegraph’s request for comment.

Cantor already well versed in crypto market 

Cantor Fitzgerald has managed Tether’s Treasury portfolio and $134 billion of reserves, mainly in US Treasury bills, since 2021. The firm also owns a 5% stake in the stablecoin issuer.

Previously, Cantor acted in an advisory role for Tether’s $775 million investment in YouTube alternative Rumble in December last year.

Related: Commerce Secretary Lutnick walks back tariff relief on electronics

Meanwhile, on March 11, Cantor Fitzgerald said it was rolling out a Bitcoin financing business with $2 billion in initial capital to help institutional investors borrow against their crypto holdings. Anchorage Digital and Copper were selected as Bitcoin custodians and collateral managers.

Cantor Fitzgerald currently holds over $5 billion worth of assets across 275 total holdings, according to Fintel data.

Magazine: XRP win leaves Ripple and industry with no crypto legal precedent set