Cantor Fitzgerald is nearing a $3 billion cryptocurrency venture with major investors SoftBank and Tether, according to a Financial Times report. Brandon Lutnick, chairman of Cantor Fitzgerald and son of U.S. Commerce Secretary Howard Lutnick, is leading the initiative to create a new firm called 21 Capital through Cantor Equity Partners.
The venture plans to receive $3 billion in bitcoin from various cryptocurrency investors and trading firms. Tether is expected to contribute $1.5 billion, while SoftBank and Bitfinex will provide $900 million and $600 million, respectively. The deal is anticipated to be announced in the coming weeks, although it is still subject to change or potential failure.
Background
Howard Lutnick, a billionaire who recently stepped down as Cantor’s CEO after 40 years, is now heading the U.S. Commerce Department under President Donald Trump. Trump’s administration has shown support for cryptocurrency, with Trump himself stating his intention to be the “crypto president” who will promote its mainstream use in America.
The proposed venture comes as the cryptocurrency market continues to evolve. While details are still emerging, the potential $3 billion investment represents significant activity in the crypto space. Representatives from Cantor, SoftBank, Tether, and Bitfinex have not yet commented on the report.
This development is part of a larger trend in the technology sector, where major investors are exploring opportunities in cryptocurrency and related technologies. Other recent news in the tech space includes Greek financial technology provider Qualco planning an Athens listing and OpenAI unveiling technology that can ‘reason’ with images.
