Twenty One Capital, a Bitcoin-focused financial firm, is reportedly exploring the issuance of U.S. dollar loans backed by Bitcoin collateral. This move signals a significant development for the company, which aims to bridge traditional finance with the burgeoning Bitcoin ecosystem.
The company, which was established in 2025 through a merger with Cantor Equity Partners and is backed by major industry players like Tether, Bitfinex, and SoftBank Group, has already amassed a significant Bitcoin treasury. The firm expects to increase its holdings to over 43,500 BTC, positioning it as the third-largest corporate Bitcoin holder globally.
The exploration of Bitcoin-collateralized loans is part of Twenty One Capital's broader strategy to develop Bitcoin-native financial products. This approach allows Bitcoin holders to access USD liquidity without needing to sell their digital assets, thereby avoiding potential capital gains tax events and maintaining exposure to Bitcoin's future price appreciation. The practice is gaining momentum among high-net-worth individuals and early crypto adopters.
Crypto-backed loans typically operate with a loan-to-value (LTV) ratio of around 50%, where borrowers lock up their Bitcoin to receive fiat or stablecoins. This model offers significant advantages, including faster processing and greater flexibility compared to traditional bank loans. Twenty One Capital's strategy aligns with a broader market trend, where firms like JPMorgan Chase are also reportedly exploring lending against crypto assets.
Led by CEO Jack Mallers, Twenty One Capital's mission is to maximize Bitcoin ownership per share and champion Bitcoin adoption. In addition to financial services, the company plans to offer advisory services and educational initiatives. As the company prepares for a potential public listing on Nasdaq under the ticker "XXI", its move into Bitcoin-backed lending could further solidify its position as a key player in the digital asset space.