TL;DR
- Twenty One Capital is developing USD loans secured by Bitcoin collateral, joining JPMorgan in blending traditional lending with crypto assets to generate yield from dormant holdings.
- The firm expanded its treasury to 43,500 BTC ($5.13B) through a Tether acquisition, defying passive “hodl” strategies for active revenue generation ahead of its SPAC public listing.
- Industry-wide shift toward yield optimization sees miners using derivatives and DeFi lending hitting $70B, validating collateral-based models as institutional standards.
Twenty One Capital is creating an innovative lending system that will provide U.S. dollar loans backed by Bitcoin as collateral, according to a report from Bloomberg on Wednesday. Backed by Wall Street giant Cantor Fitzgerald and partners Tether, Bitfinex, and SoftBank, the firm now holds 43,500 BTC ($5.13B), 1,500 BTC above projections, following a strategic acquisition from Tether.
“Optionality is wealth; everything is on the table because we think we can do anything,” a company spokesperson announced that it is getting ready to go public through a SPAC merger.
BITCOIN COLLATERAL REVOLUTIONIZES FIAT LENDING
The proposed model would let borrowers pledge BTC to secure USD loans, mirroring traditional securities-based lending but using cryptocurrency. This positions Twenty One Capital alongside giants like JPMorgan Chase, which explores similar crypto-collateralized loans by 2026, in bridging digital and fiat finance. The strategy leverages dormant Bitcoin holdings to generate yield amid volatile markets.
TREASURY EXPANSION DEFIES HODL ORTHODOXY
With 43,500 BTC, Twenty One Capital is now one of the largest corporate Bitcoin treasuries in the world. Its recent 5,800 BTC acquisition signals aggressive accumulation despite Bitcoin’s price fluctuations. This rejects passive “hodling” in favor of active treasury management, a trend embraced by miners like CleanSpark and Marathon Digital, who deploy options and derivatives to monetize reserves.
ACTIVE YIELD STRATEGIES BECOME INSTITUTIONAL STANDARD
Corporate crypto strategies now focus on making money instead of just holding assets. Twenty One Capital’s lending exploration aligns with miners using volatility-capturing derivatives and firms like Divine Research issuing 30,000 unbacked USDC loans via World ID verification. “The market demands sophistication beyond buy-and-hold,” noted a Sygnum analyst, highlighting institutional adoption of risk-managed yield tactics.
DEFI LENDING BOOM VALIDATES COLLATERAL MODELS
Decentralized finance lending surged to $70B in locked value last quarter (Sygnum Q3 2025 Outlook), with liquid staking exceeding 30% of Ether’s supply. “DeFi lending is a prime beneficiary of market rallies as investors seek leveraged exposure,” Sygnum confirmed. This explosive growth demonstrates market readiness for Twenty One Capital’s collateralized USD loans, merging TradFi credibility with crypto-native innovation.
