Twenty One Capital is reportedly considering issuing US dollar loans backed by Bitcoin collateral, as stated in a Bloomberg report. The company, supported by Cantor Fitzgerald and Tether, has recently increased its Bitcoin holdings to approximately 43,000 BTC worth an estimated $5.13 billion after acquiring 5,800 BTC from Tether. Launched in April, Twenty One Capital has emphasized its innovative approach, indicating that 'optionality is wealth.' The firm aims to lead the market as more companies venture beyond simply holding Bitcoin to actively lending and generating yields on their digital assets. This strategy comes amid rising interest in crypto lending, particularly through decentralized finance (DeFi), which has seen significant growth, with the sector reportedly containing about $70 billion locked in recent quarters. The firm has not yet responded to requests for comment regarding its lending strategy, but its plans reflect a broader trend of traditional financial institutions like JPMorgan also exploring similar pathways with cryptocurrencies.

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