Twenty One Capital is reportedly exploring a new strategy that would allow it to issue US dollar loans backed by Bitcoin collateral, Bloomberg reported Wednesday, citing a person familiar with the matter.
“Optionality is wealth, for us everything is on the table because we think we can do anything,” a spokesperson for the crypto firm reportedly said.
Twenty One Capital, backed by Cantor Fitzgerald, has expanded its Bitcoin holdings to at least 43,500 BTC, around 1,500 Bitcoin (BTC) more than originally projected. The firm recently acquired approximately 5,800 BTC from stablecoin issuer Tether, pushing its total holdings to an estimated $5.13 billion at current prices.
Launched in April, the firm aims to build one of the largest Bitcoin treasuries and is supported by Tether, Bitfinex and SoftBank. A planned merger with SPAC Cantor Equity Partners is expected to take the company public in the near future.
Related: Fees, collateral give DeFi edge as TradFi eyes crypto loans: 1inch exec
Firms move beyond hodling
As digital assets become part of balance sheets, public companies and funds are moving beyond the old hodl strategy. Many now lend out Bitcoin, stake Ether (ETH) or write options to generate yield on dormant holdings.
Bitcoin miners like MARA Holdings and CleanSpark are pioneering yield-generating strategies, using crypto options and derivatives to boost revenue instead of passively holding Bitcoin. CleanSpark reportedly plans to explore more complex derivatives, aiming to profit from market volatility.
JPMorgan Chase is also reportedly exploring the option of lending against crypto assets like Bitcoin and Ether (ETH). The Financial Times reported this may happen by 2026, though the plans are subject to change.
Cointelegraph reached out to Twenty One Capital for comment but had not received a response by publication.
Related: How to buy a home with a crypto-backed loan
Crypto lending picks up
As reported, San Francisco-based Divine Research has issued about 30,000 unbacked short-term USDC (USDC) loans since December 2024, targeting underserved overseas borrowers. The firm uses Sam Altman’s iris-scanning World ID to verify users and prevent repeat defaults through duplicate accounts.
Meanwhile, decentralized finance lending has also seen a rebound. According to Sygnum’s Q3 2025 Investment Outlook, DeFi lending hit an all-time high of $70 billion locked last quarter, and liquid staking surpassed 30% of Ether’s supply.
“The DeFi lending sector is one of the strongest beneficiaries of market rallies, with active loans on Ethereum surging to new all-time highs as investors take on greater risk and leveraged exposure,” Sygnum wrote.
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