tl;dr
The partnership between Tether and Cantor Fitzgerald, established in 2021, has significantly enhanced Tether’s credibility by having Cantor hold custody of nearly all of Tether’s U.S. Treasury reserves and acquiring a 5% equity stake in Tether. This alliance reduces regulatory risks and provides ins...
Cantor Fitzgerald’s custodianship of nearly all Tether’s U.S. Treasury reserves has significantly enhanced the stablecoin’s credibility and transparency.
Cantor’s $600 million equity stake in Tether aligns its interests with Tether’s compliance and financial solidity, reducing skepticism about reserve backing.
SoftBank’s $900 million investment in 21 Capital brings global investment clout and corporate governance, signaling mainstream acceptance of Tether and stablecoins.
Bitfinex’s participation in 21 Capital strengthens internal alignment with Tether, increases transparency, and mitigates regulatory risks through public market exposure.
The formation of 21 Capital and its Nasdaq listing under CEO Jack Mallers marks Tether’s leap toward institutional legitimacy, transparency, and competition in public Bitcoin investment.
The combined partnerships with Cantor Fitzgerald and SoftBank drastically reduce Tether’s regulatory and reputational risks, embedding it firmly within established corporate and financial networks.
The partnership between Tether and Cantor Fitzgerald, established in 2021, has significantly enhanced Tether’s credibility by placing Cantor as the custodian for nearly all of Tether’s U.S. Treasury reserves and acquiring a 5% equity stake in Tether.
This alliance reduces regulatory risks and provides institutional legitimacy.
In April 2025, SoftBank joined Tether and Cantor to launch 21 Capital, committing $900 million to this Bitcoin-focused venture, further boosting Tether’s global influence and credibility.
Bitfinex, affiliated with Tether under iFinex, also invested $600 million in 21 Capital, maintaining control while increasing transparency.
21 Capital’s planned Nasdaq listing under ticker “XXI” marks a major step toward institutionalization, subjecting Tether-linked assets to public market scrutiny and governance standards.
These developments position Tether as a mainstream financial player, diminishing previous skepticism and regulatory concerns, though ongoing compliance remains essential.
Cantor Fitzgerald, a Wall Street brokerage giant, partnered with Tether in 2021 before its CEO Howard Lutnick entered government service.
By late 2024, Cantor was already holding custody of about 80% of Tether’s $132 billion in backing, rising later to 99% of Tether’s Treasury holdings.
Skeptics of Tether’s reserve backing now face the fact that a venerable brokerage stands guard over nearly all those assets.
Cantor also purchased a 5% equity stake worth around $600 million, signaling strong alignment with Tether’s success and compliance.
The family ties between Cantor’s leadership and Tether further deepen this relationship, making it as personal as it is corporate.
Cantor’s involvement gives Tether a robust shield against regulatory scrutiny, as any failure would impact Cantor’s revenue and stake value.
SoftBank’s April 2025 commitment of $900 million to 21 Capital adds global investment expertise and signals mainstream interest in stablecoins.
Known for strategic investments across tech and finance, SoftBank’s involvement implies extensive due diligence.
Their participation brings a vast network spanning Asia, the Middle East, and beyond, enhancing Tether’s global reach and credibility.
SoftBank’s presence ensures 21 Capital meets rigorous corporate governance, reducing skepticism and regulatory suspicion.
Bitfinex, under the same ownership umbrella as Tether, invested $600 million into 21 Capital.
This reinforces internal coordination between Tether and Bitfinex, reducing risks from misaligned interests.
Bitfinex’s involvement in a publicly listed investment vehicle increases transparency and subjects some activities to public market oversight.
This dynamic bolsters trust and mitigates regulatory risks by aligning Bitfinex’s operations with standards imposed on Nasdaq-listed entities.
21 Capital, led by Bitcoin entrepreneur Jack Mallers and set for Nasdaq trading under ticker “XXI,” represents Tether’s major institutional advancement.
Public listing requires SEC compliance, quarterly reporting, and transparency, pressing Tether toward higher governance standards.
Holding a large Bitcoin treasury, 21 Capital offers investors a window into Tether’s ecosystem, bringing new public scrutiny to their Bitcoin holdings.
Control remains with Tether, ensuring stability while gaining public market credibility.
The combined clout of Cantor Fitzgerald and SoftBank as investors cements the corporate governance foundation behind 21 Capital.
This positioning puts Tether in direct competition with established public Bitcoin investment entities and could enhance its stablecoin business via increased institutional acceptance.
Overall, Cantor Fitzgerald’s custody and equity stake combined with SoftBank’s investment create a new era of legitimacy and transparency for Tether.
These alliances reduce regulatory and reputational risks that previously shadowed the stablecoin, embedding it within established financial institutions.
Public market