Tether, the world’s leading stablecoin issuer, has taken a bold step into Bitcoin-backed finance by allocating 10,500 BTC worth approximately $1.1 billion to support SoftBank’s investment in Twenty One Capital (XXI), a newly formed Bitcoin treasury firm.
The transaction, confirmed by Tether CEO Paolo Ardoino via Mempool data, revealed the BTC was moved to a known address as part of the pre-funding phase for SoftBank’s involvement in XXI. Ardoino shared details of the transaction on June 3, highlighting Tether’s growing commitment to Bitcoin-focused ventures.
“Tether Group is moving 10,500 BTC to address bc1qpzt4m58zzqgp84ktyuj5tz8g8k8ssg2g2d5eeerwhx4gxulqq5mqjzm5gc as part of the pre-funding of SoftBank’s investment in Twenty One Capital (XXI),” Ardoino stated.
A Billion-Dollar Bet on Bitcoin
The move marks a major development in the evolving synergy between traditional finance giants like SoftBank and crypto-native firms like Tether. Notably, this isn’t Tether’s first significant allocation into XXI. Just one day before the SoftBank transaction, Tether and Bitfinex jointly invested 25,812 BTC valued at $2.7 billion into Twenty One Capital. This BTC was also sent to a newly established address linked to the firm.
Later, another 917.47 BTC was transferred to a separate address as part of an investor conversion option for Twenty One Capital. Altogether, the strategic moves reflect a concerted effort to bootstrap the treasury reserves of what’s poised to become a major Bitcoin-centric investment firm.
What is Twenty One Capital?
Twenty One Capital, also referred to as XXI, is a Bitcoin Treasury vehicle being launched by Brandon Lutnick, Chairman of Cantor Fitzgerald. The firm is co-owned by iFinex (parent of Bitfinex) and Tether, and will be led by Strike CEO Jack Mallers a prominent Bitcoin advocate and payments innovator.
Twenty One Capital aims to become a publicly listed entity via a SPAC merger with Cantor Equity Partners, and will be traded on Nasdaq under the ticker XXI. At launch, the firm is expected to control over 42,000 BTC, placing it among the largest Bitcoin treasuries globally.
Strategic Significance
This development underscores several major trends in crypto and finance:
- Institutional Confidence in Bitcoin: Tether and SoftBank’s capital infusion highlights renewed confidence in BTC as a long-term treasury asset.
- Shift Toward Bitcoin-native Financial Products: Twenty One Capital aims to bridge the gap between traditional market access and Bitcoin exposure through public equity markets.
- Strengthened Role for Tether in Bitcoin Ecosystem: Tether’s USDT remains dominant in crypto markets, but these moves position the company as a major player in Bitcoin-native finance.
Despite the large BTC transfers, Bitcoin’s price has remained relatively stable, trading at $105,241 at the time of writing, down slightly by 0.2% over the past 24 hours. Its market cap sits at $2.09 trillion, reflecting a minor 0.14% dip.
Looking Ahead
As Tether, Bitfinex, and SoftBank rally behind Twenty One Capital, the venture could redefine how Bitcoin treasuries operate and are represented in public markets. With Jack Mallers at the helm and substantial reserves already secured, XXI is emerging as a formidable player in the institutional Bitcoin landscape.
This could be just the beginning of a new era of Bitcoin-backed financial instruments, driven by strategic alignment between legacy institutions and crypto visionaries.
