In a significant move, Tether, the issuer of the USDT stablecoin, made a $458.7 million Bitcoin acquisition on May 13 for Twenty One Capital, a Bitcoin investment firm it backs. This firm is preparing for a merger with Cantor Equity Partners via a Special Purpose Acquisition Company (SPAC). According to a regulatory filing by Cantor Equity Partners, Tether purchased 4,812 BTC at a price of $95,319 each, securing them in an escrow wallet on May 9.
With this latest addition, Twenty One Capital’s Bitcoin holdings now total 36,312 BTC, placing it among the largest Bitcoin holders of public companies, just behind MicroStrategy (now Strategy) and Bitcoin mining firm MARA Holdings, which hold 568,840 BTC and 48,237 BTC, respectively. Once the SPAC merger is finalized, Twenty One Capital plans to list under the ticker symbol XXI.
VanEck Ventures into Tokenized Real-World Assets with New Fund
VanEck, a prominent investment firm, is launching its first-ever tokenized real-world asset (RWA) fund, aimed at providing exposure to US Treasury bills. The fund, named VBILL, is being developed in partnership with the tokenization platform Securitize. The fund will initially be available on several major blockchains, including Avalanche, BNB Chain, Ethereum, and Solana, with minimum investment subscriptions varying from $100,000 to $1 million depending on the blockchain used.
This marks VanEck’s entry into the growing space of tokenized RWAs, joining other financial giants like BlackRock and Franklin Templeton, who have already launched similar funds. Notably, in January, Apollo, a firm managing $751 billion in assets, also launched a private credit tokenized fund. VanEck’s partnership with Securitize, which has tokenized over $3.9 billion in assets, signals a strong move toward the mainstream adoption of blockchain in traditional finance.
Arizona Governor Blocks Key Crypto Bills Amid Bitcoin ATM Crackdown
In a controversial move, Arizona Governor Katie Hobbs vetoed two significant cryptocurrency bills that sought to increase the state’s involvement in digital assets. On May 12, she rejected Senate Bill 1373, which aimed to establish a Digital Assets Strategic Reserve Fund. This fund would have allowed the state to hold crypto assets, potentially acquired from seizures or legislative allocations. Hobbs expressed concerns over the volatility of cryptocurrencies and their fit for state finances, stating that she had already signed legislation that would allow cryptocurrency use without risking public funds.
This decision followed her earlier veto of Senate Bill 1025, which proposed the creation of a “Strategic Bitcoin Reserve Act” that would have allowed up to 10% of Arizona’s state treasury and retirement funds to be invested in Bitcoin and other digital assets. As part of her broader approach to crypto regulation, Hobbs also vetoed Senate Bill 1024, which would have enabled state agencies to accept cryptocurrency for payments such as taxes and fines.
These actions come amidst growing interest in state-backed cryptocurrency reserves, with 26 states across the US having introduced such bills, and 18 of them currently active. Despite the vetoes, Arizona’s government is still making strides toward regulating Bitcoin ATMs more strictly.
Summary
The crypto world continues to evolve rapidly, with significant developments across Bitcoin investments, tokenized real-world assets, and crypto regulation. Tether’s Bitcoin injection into Twenty One Capital further solidifies its position in the market, while VanEck’s move into the tokenization of US Treasuries demonstrates growing institutional interest in blockchain-based assets. On the regulatory front, Arizona’s governor has taken a cautious approach, vetoing several bills aimed at expanding the state’s involvement with crypto but still advancing stricter regulations for Bitcoin ATMs. These events highlight the ongoing transformation of the crypto ecosystem, bridging traditional finance with digital assets, all while navigating the complexities of regulation and market volatility
