Crypto power move: Cantor teams up with Tether and SoftBank for $3B venture

Cantor Fitzgerald, Tether, and SoftBank are joining forces to launch a $3 billion crypto investment firm, aiming to channel billions into the digital asset space.

Cantor Fitzgerald is planning a major push into crypto with the help of Tether and SoftBank. Together, they aim to create a $3 billion firm focused on investing in digital assets. The move would absorb large amounts of cryptocurrency, making it one of the boldest efforts yet in the space.

A special purpose acquisition company (SPAC) tied to Cantor, called Cantor Equity Partners I, secured $200 million in January. The new entity will be built with additional backing from Tether—$1.5 billion in Bitcoin—alongside $600 million from Bitfinex and $900 million from SoftBank, according to a source familiar with the talks. Discussions remain private, and none of the companies have officially commented yet.

This deal follows a growing trend led by Bitcoin advocates like Michael Saylor, who has accumulated roughly $45 billion in Bitcoin. Imitators globally, such as Japan's Metaplanet Inc., are also getting into the game by funding their crypto buys with stock sales and similar financial instruments.

Tether, known as the largest stablecoin issuer, has been on a dealmaking spree. Over the past year, it’s funneled money into areas like agriculture tech, AI, and brain-computer interfaces. As of February, Tether said it had over $7 billion in reserves beyond what’s required.

Tether’s strong relationship with Cantor is key here. Cantor’s CEO, Howard Lutnick, has ties to high-level politics and business. He also oversees management of Tether’s reserves and is involved with bonds issued by the company. Meanwhile, his son Brandon Lutnick, who chairs the SPAC, helped bring Tether into conservative social media spaces like Rumble, ahead of a $775 million investment.