SoftBank Re-Enters Bitcoin, This Time Investing in the Son of the U.S. Secretary of Commerce

Original Article Title: "SoftBank Reenters Bitcoin, This Time Investing in the Son of the US Secretary of Commerce!"

Original Article Author: KarenZ, Foresight News

Against the backdrop of the Trump administration signaling positive policies towards cryptocurrency, U.S. financial services giant Cantor Fitzgerald is partnering with SoftBank Group, stablecoin issuer Tether, and its affiliated trading platform Bitfinex to jointly establish a $3 billion Bitcoin joint venture. The venture aims to seize the opportunity presented by the Trump administration's crypto-friendly policies, replicating a successful model where Strategy achieved soaring market value through Bitcoin investment. This move is seen as a landmark event of traditional financial capital accelerating its embrace of the digital currency market.

What Are the Transaction Details?

According to the Financial Times citing three sources familiar with the matter, this special purpose acquisition company (SPAC) named Cantor Equity Partners is led by Brandon Lutnick, the current Chairman of Cantor Fitzgerald. Brandon Lutnick is the son of current U.S. Secretary of Commerce Howard Lutnick. After Howard Lutnick stepped down as Chairman of Cantor Fitzgerald and assumed the role of Secretary of Commerce in February 2025, Brandon Lutnick took over as the company's Chairman.

As a long-established financial services firm founded in 1945, Cantor Fitzgerald specializes in institutional equity, fixed-income sales and trading, investment banking, real estate financing, and brokerage services. In the past two years, the company has actively expanded the integration of cryptocurrency with traditional finance. In July 2024, Cantor Fitzgerald announced plans to launch a Bitcoin financing business, offering a $20 billion loan and gradually increasing the loan amount by an additional $20 billion to provide leverage to Bitcoin investors. Howard Lutnick stated at the time that the company also held a "significant amount" of Bitcoin.

The Financial Times reported that under the latest plan, in January of this year, Cantor Equity Partners raised $200 million and intends to use these funds as the foundation to establish a new entity called 21 Capital. This new company plans to absorb $3 billion in Bitcoin from SoftBank, Tether, and Bitfinex and create a publicly listed cryptocurrency investment platform.

The specific funding plan is as follows: Tether has committed to provide $1.5 billion worth of Bitcoin, SoftBank and Bitfinex will respectively contribute $900 million and $600 million worth of Bitcoin. According to the terms, the Bitcoin investments from SoftBank, Tether, and Bitfinex will be converted into shares of 21 Capital at a price of $10 per share, valuing Bitcoin at $85,000 per coin. In addition, Cantor Equity Partners will also issue $3.5 billion in convertible bonds and $2 billion (it is currently unclear if this is the same funding round as the one in January) in private equity financing to further increase their Bitcoin holdings. The Financial Times cited sources familiar with the matter stating that while the agreement may be announced in the coming weeks, it may still not come to fruition, and the terms may change.

Replicating MicroStrategy’s Strategy?

It is evident that the establishment of 21 Capital is heavily inspired by the transformational journey of Strategy (formerly MicroStrategy). MicroStrategy, originally a software company, began massively acquiring Bitcoin through stock and bond offerings in 2020, and has now become the benchmark for Bitcoin corporate investments, with a market capitalization soaring to $91 billion. As of April 20, 2025, Strategy holds 538,200 BTC with an average purchase price of $67,766.

The Financial Times reported that this transaction is just the beginning of Cantor Fitzgerald's foray into the SPAC space. Apart from Cantor Equity Partners, Cantor Fitzgerald has also launched two other SPACs led by Brandon Lutnick, both of which are actively seeking investment opportunities.

Market speculation suggests that 21 Capital will later pursue a reverse merger listing through Cantor Equity Partners, leveraging the flexibility of SPACs and the fundraising capabilities of the public market to attract more institutional investors into the cryptocurrency space.

Cantor Fitzgerald’s Long-Standing Collaboration with Tether

Cantor Fitzgerald has a deep-rooted history of collaboration and association with Tether. In November 2024, an article by The Wall Street Journal revealed the close business ties between the two. At that time, Howard Lutnick, then Chairman of Cantor Fitzgerald (now U.S. Secretary of Commerce), had a key client who was none other than Giancarlo Devasini, the mysterious figure behind Tether (according to Tether's website, Giancarlo Devasini is currently the Chairman of Tether, having previously served as its CFO). Most of Tether's $134 billion in assets were held by Cantor Fitzgerald, with the majority being U.S. Treasuries. Due to Tether's business holding these U.S. Treasuries through Cantor Fitzgerald for asset backing to support the stablecoin Tether's value, this custodial relationship brings Cantor tens of millions of dollars in revenue annually.

Of particular note, the Wall Street Journal also cited information from informed business partners stating that in 2023, Cantor Fitzgerald and Tether reached an agreement, with Cantor Fitzgerald holding a 5% stake in Tether valued at a high of $6 billion at the time.

In 2024, Giancarlo Devasini privately suggested that Howard Lutnick might leverage his political influence to ease regulatory pressure on Tether. However, a Tether spokesperson later clarified that the collaboration with Cantor Fitzgerald was purely based on professionally managing reserves, dismissing speculation about regulatory influence. Howard Lutnick also publicly stated his intention to divest his holdings in Cantor Fitzgerald to comply with government ethical standards. It is worth noting that the U.S. Department of Commerce has historically had a limited role in cryptocurrency regulation.

Additionally, Cantor Fitzgerald facilitated a $775 million investment by Tether into the right-wing video platform Rumble in December 2024, acting as placement agent and broker in the deal.

It is worth mentioning that Rumble is a conservative-leaning video-sharing platform whose main users include Trump supporters, libertarians, and anti-mainstream media groups. Although Tether CEO Paolo Ardoino stated at the time, "Tether's investment in Rumble reflects our shared values: decentralization, independence, transparency, and the fundamental right to free speech," this investment was seen externally as an example of cryptocurrency capital expanding into politically affiliated media. At the end of November 2024, the Rumble board approved a company treasury diversification strategy, including a Bitcoin allocation strategy allowing the company to decide to purchase up to $20 million worth of Bitcoin. Subsequently, in January 2025, Rumble purchased $17.1 million worth of Bitcoin.

As a traditional investment bank, Cantor Fitzgerald has progressively deepened its involvement in the crypto ecosystem through such transactions. This partnership with SoftBank, Tether, and Bitfinex is another significant move for Cantor Fitzgerald in the cryptocurrency field.

SoftBank's Crypto Journey

The $30 billion Bitcoin joint venture among Cantor Fitzgerald, SoftBank, and Tether also indirectly reflects SoftBank's formal entry into the Bitcoin market. The cryptocurrency journey of this investment giant has had its twists and turns: according to a Wall Street Journal report, at the end of 2017, founder Masayoshi Son made a large bet on Bitcoin, only to liquidate at a $130 million loss when prices plummeted in early 2018. The Vision Fund had previously invested nearly $100 million in FTX. By participating in Bitcoin investments through an SPAC structure this time, SoftBank is demonstrating a more cautious and institutionalized investment strategy.

Conclusion

For 21 Capital, its future success will depend on several key factors. First and foremost is the long-term trend of the Bitcoin price. As the dominant cryptocurrency in the market, Bitcoin's price fluctuations directly impact 21 Capital's asset value and investment returns. Secondly, the specific implementation of the Trump administration's crypto policy is also crucial. If the policy can maintain a friendly attitude towards cryptocurrency and provide a clear regulatory framework, it will be beneficial for the development of 21 Capital. Additionally, the execution of the SPAC transaction will determine whether 21 Capital can successfully achieve its goals. Any legal or financial issues during the transaction may hinder the project's progress. A successful completion of this transaction is likely to trigger more traditional financial institutions to follow suit, thereby accelerating the integration of cryptocurrency and traditional finance.

With the entry of traditional financial giants such as Cantor Fitzgerald and SoftBank, the cryptocurrency market is entering a new stage of development, with institutional investors experiencing a surge in demand for building compliant investment channels. This cross-industry cooperation has the potential to reshape the landscape of digital asset institutional allocation, attracting more traditional financial institutions to reconsider the cryptocurrency market, driving more funds into the field, and subsequently changing the status and proportion of digital assets in institutional investment portfolios. Of course, 21 Capital has also sparked market discussions due to its complex political and business network.

Original Article Link