Cantor nears $3 billion crypto venture with SoftBank and Tether, FT reports

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Brandon Lutnick, son of U.S. Commerce Secretary Howard Lutnick and chair of brokerage Cantor Fitzgerald, is partnering with SoftBank, Tether and Bitfinex to create a multibillion-dollar bitcoin acquisition vehicle, the Financial Times reported on Tuesday.

The vehicle, Cantor Equity Partners, will use the cash to create a new firm, called 21 Capital. It will receive $3 billion in bitcoin from the other cryptocurrency investors and trading firms, the report added, citing unnamed sources.

Tether would contribute $1.5 billion of bitcoin, while SoftBank and Bitfinex would contribute $900 million and $600 million, respectively, of the digital currency, according to the report.

FT said the announcement was likely to come in the next few weeks. However, it added that the deal could still fail and the numbers could change.

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Howard Lutnick, the billionaire who was the CEO of Cantor for 40 years, stepped down last month to run President Donald Trump's commerce department. His sons, Brandon and Kyle Lutnick took over as chairman and executive vice chairman of the brokerage, respectively.

Trump has promised to be the "crypto president," the one who will popularize its mainstream use in America. He has said he backs crypto because it can improve the banking system and increase the dominance of the U.S. dollar.

Cantor, SoftBank, Tether and Bitfinex did not immediately respond to Reuters' requests for comment.

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