Key facts
- Wintermute plans to invest up to $1 billion in AI data center infrastructure and high-frequency trading.
- The investment is planned over the next five years.
- Wintermute aims for non-crypto market activity to constitute over 50% of its business by the end of 2027, up from 10%.
- The company plans to double its New York office staff and increase global headcount by 40%.
Crypto market maker Wintermute is reportedly planning a significant expansion into traditional finance (TradFi) by investing up to $1 billion over the next five years. The funds will be allocated to artificial intelligence (AI) data center infrastructure and high-frequency trading (HFT).
This strategic move aims to increase Wintermute's non-crypto market activities to over 50% of its total business by the end of 2027, a substantial rise from its current 10%. CEO Evgeny Gaevoy indicated that the company will also double its staff in its New York office next year and increase its global headcount by approximately 40%.
Wintermute's expansion aligns with a broader trend of crypto-native firms venturing into TradFi. This includes major crypto exchanges like Coinbase, Binance, and Kraken, as well as Crypto.com, which recently announced its entry into offering tokenized traditional assets. These platforms are seeking new revenue streams by integrating tokenized stocks and funds.
Traditional financial institutions are also exploring blockchain technology for trading. In March, the U.S. Securities and Exchange Commission approved Nasdaq's pilot program for trading tokenized stocks. Additionally, the New York Stock Exchange has partnered with Securitize to develop blockchain-based trading infrastructure for tokenized shares and ETFs.