Twenty One Capital Plans Bitcoin Backed Lending Strategy
Twenty One Capital is exploring a Bitcoin-backed USD lending program according to a Bloomberg report published Wednesday. Cointelegraph reports the crypto company recently acquired 5,800 Bitcoin from Tether, expanding its holdings to 43,500 BTC worth approximately $5.13 billion. The firm's spokesperson told Bloomberg that everything remains on the table as they evaluate business opportunities.
The company launched in April with backing from Cantor Fitzgerald, Tether, Bitfinex and SoftBank. Twenty One Capital aims to build one of the largest Bitcoin treasuries through a planned merger with SPAC Cantor Equity Partners. The public listing is expected in the near future. The acquisition from Tether positions Twenty One as the third-largest corporate Bitcoin holder globally, with Bitcoin purchased at an average price of $87,280 per coin.
Bitcoin Lending Market Shows Growing Institutional Interest
The lending strategy reflects broader industry movement beyond traditional Bitcoin holding approaches. Blockworks reports the Bitcoin-backed lending market reached $8.6 billion in August 2024 with projections of $45.6 billion by 2030. Leading platforms like Ledn processed $114 million in retail loans during January 2025 alone.
Financial institutions are increasingly viewing Bitcoin-backed lending as portfolio diversification. Osler Law notes Goldman Sachs and Morgan Stanley purchased $600 million in Bitcoin ETFs by August 2024. The lending model allows investors to access liquidity without selling holdings, providing tax advantages and continued price exposure.
Coinbase launched crypto-backed loans through Morpho's lending protocol, offering rates as low as 5%. The platform allows borrowing up to $1 million USDC using Bitcoin collateral with no monthly payments or deadlines. We previously reported that fifteen US states are developing Bitcoin reserves, with Oklahoma, New Hampshire and Pennsylvania proposing up to 10% allocation of public funds for Bitcoin purchases.
Corporate Treasury Evolution Creates New Financial Infrastructure
Twenty One Capital's lending plans represent the next phase of corporate Bitcoin adoption. Companies like MARA Holdings and CleanSpark are pioneering yield-generating strategies using crypto derivatives rather than passive holding. JPMorgan Chase is reportedly exploring crypto-backed lending options, potentially launching by 2026 according to Financial Times reporting.
The shift from holding to yield generation reflects Bitcoin's growing acceptance as financial infrastructure. CoinLedger reports crypto loan providers offer rates between 5% and 18% depending on loan-to-value ratios and platform risk models. Traditional banks are partnering with qualified custodians to offer Bitcoin-backed services while maintaining regulatory compliance.
Twenty One Capital's approach differs from competitors through its Bitcoin-native structure. The company plans to measure performance using Bitcoin Per Share metrics rather than traditional earnings measures. This strategy positions the firm as infrastructure for Bitcoin-denominated financial products including lending models and capital market instruments. The lending program could establish Twenty One as a bridge between traditional finance and Bitcoin-based economic systems.
