By partnering with Tether and Japanese technology investor SoftBank Group to purchase bitcoin, Cantor Fitzgerald is speculating that demand for the virtual currency would rise under US President Donald Trump.
Cantor Equity Partners, a blank-check entity, would merge with Twenty One Capital as part of the agreement, which was revealed on Wednesday.
Twenty One stated that it will begin with more than 42,000 bitcoins, making it the third-largest bitcoin treasury in the world.
The combined vehicle is worth over $3.6 billion, based on a bitcoin price of almost $85,000.
The partnership strengthens ties between Tether, the business that created the biggest stablecoin in the world, and the Wall Street brokerage, which is chaired by Brandon Lutnick, son of the former Cantor chairman and current U.S. commerce secretary.
The new company aims to follow in Michael Saylor's bitcoin acquirer Strategy's footsteps, whose market value soared late last year as cryptocurrency prices soared after Trump won the presidency.
Trump has pledged to ease restrictions on digital assets in order to help the cryptocurrency sector.
As of April 20, Strategy, the largest corporate bitcoin holder, had 538,200 units of the largest cryptocurrency in the world, with a market value of over $91 billion.
According to an investor presentation, Tether would invest $1.6 billion in bitcoin in the project, while Bitfinex, a cryptocurrency exchange connected to Tether, and SoftBank will contribute $600 million and $900 million, respectively.
Convertible bonds and equity financing will be used by the corporations to raise an extra $585 million.
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Bitcoin, which is presently trading at $93,780, has been hailed by some analysts as a hedge against hazards to the world economy. After Trump triggered a worldwide trade war, it plummeted this month along with stock markets and other asset values, after having risen more than 40 percent in the previous six months.