Bitcoin News Today: Twenty One Capital Expands Bitcoin-Backed Lending Strategy as Institutional Adoption Surges

Twenty One Capital is advancing a strategy to offer U.S. dollar loans backed by Bitcoin, according to recent reports. The firm’s plans mark a growing shift toward using digital assets as collateral in traditional financial systems, potentially accelerating the institutional adoption of crypto-backed lending products. The initiative builds on the company’s recent acquisition of 5,800 Bitcoin from Tether, bringing its total holdings to 43,500 BTC, valued at approximately $5.13 billion. This positions Twenty One Capital as one of the largest institutional Bitcoin holders globally, currently ranked as the third-largest [4].

The lending strategy is part of a broader trend in the corporate Bitcoin treasury space, where companies are increasingly leveraging their crypto holdings for yield generation and liquidity. The Bitcoin-backed lending market reached $8.6 billion in August 2024, with projections of $45.6 billion by 2030. Platforms such as Ledn have already processed significant loan volumes, with $114 million in retail loans issued in January 2025 alone. The financial model allows investors to retain their Bitcoin positions while accessing liquidity, offering potential tax advantages and continued exposure to price appreciation.

Traditional financial institutions are also showing interest, with major banks like Goldman Sachs and Morgan Stanley reportedly investing $600 million in Bitcoin ETFs by mid-2024. Meanwhile, Coinbase has launched crypto-backed loans via Morpho’s lending protocol, offering rates as low as 5%. The platform allows borrowers to access up to $1 million in USDC using Bitcoin as collateral, with flexible terms that include no monthly payments or repayment deadlines.

Twenty One Capital’s strategy distinguishes itself through its Bitcoin-native structure, with a performance metric based on Bitcoin Per Share rather than traditional earnings. This approach aims to position the firm as foundational infrastructure for Bitcoin-denominated financial products, including lending models and capital market instruments. The firm is preparing for a public listing through a merger with Cantor Equity Partners, a SPAC backed by Cantor Fitzgerald, Tether, Bitfinex, and SoftBank. The listing is expected to enhance its market presence and provide access to broader capital sources.

The firm’s Bitcoin-backed lending program reflects an industry-wide evolution, where digital assets are being integrated into traditional financial infrastructure. JPMorgan Chase is also reportedly exploring similar crypto-backed lending options, potentially launching in 2026. As crypto treasury strategies mature, firms like Twenty One Capital are pioneering new financial models that go beyond passive holding, incorporating derivatives and lending to generate returns.

Source:

[1] [Crypto Firms Adopt Wall Street's Financial Tactics in New Era](https://www.bloomberg.com/news/articles/2025-07-30/crypto-firms-adopt-wall-street-s-financial-tactics-in-new-era)

[2] [Bitcoin News Today: Twenty One Capital Surpasses 43,500 BTC](https://www.ainvest.com/news/bitcoin-news-today-twenty-capital-surpasses-43500-btc-5-13-billion-position-2507/)

[3] [Bitcoin Treasury Race Heats Up: Twenty One Capital Surpasses 43,000 BTC](https://coinmarketcap.com/community/articles/688a556929085052a588ba9c/)

[4] [Twenty One Capital rises to 3rd largest Bitcoin holder](https://cryptoslate.com/twenty-one-capital-rises-to-3rd-largest-bitcoin-holder-following-5800-btc-boost-from-tether/)