Wintermute challenges Wall Street: $1 billion for high-frequency trading and AI
One of the largest algorithmic market makers in the crypto industry has announced plans to invest about $1 billion over five years to build infrastructure for high-frequency trading and data centers for artificial intelligence tasks. This is an ambitious attempt to transform from a purely crypto player into a full-fledged trading organization capable of competing with giants like Jane Street and Citadel Securities.
The company's CEO and founder, Evgeny Gaevoy, confirmed in a private conversation with me that the ambitions are backed by a sober assessment of reality. The company's average daily trading volume has fallen from about $15 billion last year to $10 billion this year amid a cooling crypto market. This is not just a correction—it is a signal of the need for diversification.
A pivot toward traditional finance
Discussions about entering traditional markets have moved into the practical realm. The company's U.S. division has already registered with the SEC as a broker-dealer and joined FINRA, which has opened access to trading stocks and related instruments on U.S. exchanges.
Currently, trading in non-crypto assets accounts for only about 10% of revenue. However, the strategic goal is to bring this figure to more than 50% by the end of 2027. This is a radical change in the business model that will require significant resources.
To achieve the goal, the company plans to double its team in New York, where only 17 people currently work, and expand its global headcount by 40% over the next year. This $1 billion in spending will be funded exclusively from its own profits—no external capital or debt.
This approach sets Wintermute apart from many competitors that are accustomed to attracting outside investors. It demonstrates confidence in its own financial stability and long-term strategy.
Why high-frequency trading and AI are needed
The bulk of the capital will go toward two areas: high-frequency trading systems and data centers for training artificial intelligence models. This is not just about hiring traders and obtaining licenses—it is about building a technological foundation.
Wintermute already processes more than $3.5 trillion in annual trading volume across more than 70 venues. This scale generates vast amounts of data, which will become the fuel for training AI models. This is a natural advantage that is difficult for new players to replicate.
The company is also expanding within the digital asset industry, entering prediction markets and providing trading in tokenized gold. These areas connect crypto infrastructure with the real economy, creating bridges for institutional capital.
The company's position was noticeably strengthened after the collapse of FTX in late 2022, when it stepped in as one of the key liquidity providers during a period of severe market stress. At peak moments, daily trading volume reached $3–5 billion.
It was then that Wintermute cemented its reputation as a reliable counterparty—at a time when the industry needed it most. Now the company is trying to transfer this experience beyond the crypto market, and it has every chance of doing so.
My analysis: This move is a logical evolution for a mature market maker. The crypto market is becoming increasingly competitive, and margins are shrinking. The transition into traditional finance using AI is not just diversification but a bet that experience with crypto asset volatility will become a competitive advantage in calmer but larger markets. If Wintermute manages to pull off what it has planned, we will witness the birth of a new giant that will shape the trading landscape for decades to come. However, it is worth closely watching how the company manages risks amid tightening regulation and potential AI system failures.