Bitcoin News Today: Twenty One Capital Considers Bitcoin-Backed USD Loans as Crypto Lending Grows

Twenty One Capital, a crypto-backed investment firm supported by Tether, Bitfinex, and Cantor Fitzgerald, is reportedly exploring the issuance of U.S. dollar loans backed by Bitcoin collateral, according to a Bloomberg report citing a person familiar with the matter [1]. The firm, which has significantly expanded its Bitcoin holdings, now owns at least 43,500 BTC, valued at approximately $5.13 billion at current prices [1]. This follows a recent acquisition of 5,800 BTC from Tether, surpassing initial estimates by 1,500 BTC.

The firm’s strategy reflects a growing trend among public companies and funds to move beyond traditional "hodl" tactics and actively generate yield from crypto assets. Twenty One Capital, which launched in April with ambitions to build one of the largest Bitcoin treasuries, is also preparing for a potential merger with SPAC Cantor Equity Partners, a move that could take the firm public in the near future [1].

The broader crypto lending market has also seen increasing activity. In 2025, San Francisco-based Divine Research reported issuing 30,000 short-term USDC loans to overseas borrowers, using biometric verification to mitigate default risks [1]. Additionally, decentralized finance (DeFi) lending platforms experienced a resurgence, with $70 billion in total value locked (TVL) reported in Q3 2025 by Sygnum, and liquid staking accounting for over 30% of Ether’s supply [1].

JPMorgan Chase is also reportedly considering lending against crypto assets like Bitcoin and Ether, with the possibility of such initiatives launching by 2026, though these plans remain subject to change [1]. Meanwhile, crypto mining firms such as MARA Holdings and CleanSpark are leveraging derivatives and options strategies to generate returns from their Bitcoin holdings, moving away from passive storage methods.

Twenty One Capital’s potential foray into Bitcoin-backed loans underscores the evolving relationship between traditional finance and the crypto ecosystem. As institutional players increasingly seek ways to monetize digital assets, the line between traditional and decentralized finance continues to blur. The firm’s bold approach, however, also raises questions around risk management, regulatory scrutiny, and the volatility inherent in crypto collateral.

Source: [1]Twenty One Capital eyes Bitcoin-backed USD loans: Report (https://cointelegraph.com/news/twenty-one-capital-bitcoin-loans-tether-btc-treasury?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound)