Twenty One Capital, backed by Cantor Fitzgerald and Tether, is reportedly exploring a strategy to issue US dollar loans backed by Bitcoin collateral, according to a Bloomberg report citing an insider. A spokesperson for the crypto company stated, “Optionality is wealth; for us everything is on the table because we think we can do anything.” The firm has expanded its Bitcoin holdings to at least 43,500 BTC, about 1,500 more than initially projected. This includes a recent acquisition of approximately 5,800 BTC from stablecoin issuer Tether, bringing its total Bitcoin treasury to an estimated $5.13 billion at current market prices. Launched in April 2025, Twenty One Capital aims to build one of the largest Bitcoin treasuries. It is supported by Tether, Bitfinex, and SoftBank. The company is also planning a merger with SPAC Cantor Equity Partners, which is expected to take it public soon.

Firms Move Beyond Hodling

As digital assets increasingly become part of corporate balance sheets, many public companies and funds are moving beyond the traditional "hodl" strategy. Instead, they are lending Bitcoin, staking Ether, or writing options to generate yield on otherwise dormant holdings. Bitcoin miners such as MARA Holdings and CleanSpark are pioneering yield-generating strategies by using crypto options and derivatives to boost revenue rather than passively holding Bitcoin. CleanSpark has plans to explore more complex derivatives to profit from market volatility. JPMorgan Chase is reportedly considering lending against crypto assets like Bitcoin and Ether, with potential implementation by 2026, though plans remain subject to change.

Crypto Lending Gains Momentum

San Francisco-based Divine Research has issued about 30,000 unbacked short-term USDC loans since December 2024, targeting underserved overseas borrowers. The firm uses Sam Altman’s iris-scanning World ID to verify users and prevent repeat defaults. Decentralized finance (DeFi) lending has also rebounded. According to Sygnum’s Q3 2025 Investment Outlook, DeFi lending reached an all-time high of $70 billion locked last quarter, with liquid staking surpassing 30% of Ether’s supply. Sygnum noted, “The DeFi lending sector is one of the strongest beneficiaries of market rallies, with active loans on Ethereum surging to new all-time highs as investors take on greater risk and leveraged exposure.”

Source: Cointelegraph — Originally published on Wed, 30 Jul 2025 13:23:25 GMT

Frequently Asked Questions (FAQ)

Bitcoin as Collateral for Loans

Q: What is Twenty One Capital reportedly exploring regarding Bitcoin? A: Twenty One Capital is reportedly exploring a strategy to issue US dollar loans collateralized by Bitcoin. Q: Who is backing Twenty One Capital? A: Twenty One Capital is backed by Cantor Fitzgerald and Tether. Q: How much Bitcoin does Twenty One Capital hold? A: Twenty One Capital holds at least 43,500 BTC. Q: What is the estimated value of Twenty One Capital's Bitcoin holdings? A: At current market prices, their Bitcoin treasury is estimated to be worth around $5.13 billion. Q: What is Twenty One Capital's goal? A: Their goal is to build one of the largest Bitcoin treasuries.

Evolving Investment Strategies

Q: What is the trend for companies holding digital assets? A: Many companies are moving beyond simply "hodling" (passively holding) digital assets and are actively seeking to generate yield by lending, staking, or writing options on their crypto holdings. Q: How are Bitcoin miners innovating their strategies? A: Bitcoin miners like MARA Holdings and CleanSpark are using crypto options and derivatives to generate additional revenue, with CleanSpark planning to explore more complex derivatives. Q: Are traditional financial institutions exploring crypto-backed loans? A: Yes, JPMorgan Chase is reportedly considering lending against crypto assets like Bitcoin and Ether, with potential implementation by 2026.

DeFi Lending and Growth

Q: What is the current state of DeFi lending? A: DeFi lending has shown strong growth, reaching an all-time high of $70 billion locked in the last quarter, with liquid staking also increasing. Q: What drives the growth in DeFi lending? A: Market rallies and investors taking on greater risk and leveraged exposure are major drivers of growth in the DeFi lending sector.

Crypto Market AI's Take

The exploration by Twenty One Capital of issuing USD loans backed by Bitcoin collateral signifies a maturing crypto market where digital assets are increasingly integrated into traditional financial instruments. This move, supported by major players like Tether and Cantor Fitzgerald, aligns with the broader trend of institutions and corporations actively seeking to derive yield from their digital asset holdings rather than just passively holding them. Our platform, Crypto-Market.AI, provides sophisticated tools and insights to navigate these evolving market dynamics. We offer AI-powered trading bots and market analysis that can help investors understand and capitalize on such innovative financial strategies within the digital asset space. Furthermore, our comprehensive AI Agents section delves into how artificial intelligence is revolutionizing various aspects of the crypto market, from trading automation to risk management.

Twenty One Capital eyes Bitcoin-backed USD loans: Report