Wintermute will allocate $1 billion to AI infrastructure and expansion into TradFi
Major cryptocurrency market maker Wintermute has announced plans to invest about $1 billion over the next five years in developing infrastructure for high-frequency trading and artificial intelligence systems. This is a strategic move that fundamentally changes the company's positioning in the market.
The project will be funded exclusively through retained earnings, underscoring the firm's financial stability. As CEO Evgeny Gaevoy explained, entering traditional markets requires enormous investment, as Wintermute will have to compete with players who have "spent decades honing their trading systems and infrastructure."
Currently, non-crypto-related areas bring the market maker only about 10% of its revenue. However, by the end of 2027, the company has set an ambitious goal to increase their share to more than 50%. Notably, Wintermute's average daily trading volume in 2026 fell to approximately $10 billion, down from $15 billion a year earlier, which likely spurred the search for new revenue sources.
Gaevoy sees Wintermute's future in transforming from a predominantly crypto market maker into a universal trading firm comparable in scale to giants like Jane Street or Citadel Securities. This is a logical evolution given the growing convergence of digital and traditional assets.
One of the key investment areas will be data centers optimized for AI and quantitative models. According to Gaevoy, modern trading strategies require not only minimal latency in trade execution but also the ability to continuously train models on vast arrays of market data. This demands significant computing power, storage systems, and high-speed network infrastructure.
In parallel, Wintermute is expanding its workforce. In 2027, the company plans to double the staff of its New York office, which currently employs 17 people, and increase its global headcount by approximately 40%. This signals the seriousness of its intentions to establish a foothold in the U.S. market.
Beyond Cryptocurrencies
The expansion into traditional assets began earlier this year. In February, the market maker added tokenized gold PAXG and XAUT to its OTC platform, offering clients the ability to settle in cryptocurrencies, stablecoins, and fiat.
In March, the company's Asian division launched 24/7 OTC trading in WTI oil CFDs, including weekends and holidays. This was a response to growing demand for using crypto infrastructure to work with traditional assets.
Wintermute analysts also note intensifying competition between stocks and digital assets for retail capital. Investors are increasingly reallocating funds between these asset classes rather than building positions in both simultaneously.
Recall that on August 7, the company entered the regulated U.S. securities market: affiliated entity Wintermute USA LLC registered with the SEC as a broker-dealer.
My take: This is a bold but timely move. Declining trading volumes in the crypto sector are forcing major players to diversify. However, competing with established TradFi giants will require not only money but also unique technological solutions. Wintermute's success will depend on how effectively the company can transfer its algorithmic expertise from the crypto world into a far more regulated and competitive environment.