Wintermute plans $1B investment in HFT and AI infrastructure to break into traditional markets

Wintermute, one of the largest algorithmic trading firms in crypto, is committing roughly $1 billion over five years to build out high-frequency trading systems and AI data-center infrastructure. The goal: transform from a crypto market maker into a full-service trading firm that can compete with the likes of Jane Street and Citadel Securities. That’s an ambitious target for a company founded around 2017 that made its name providing liquidity to digital asset markets. But CEO Evgeny Gaevoy appears to be reading the room. In an interview with Bloomberg, he acknowledged that average daily trading volumes at the firm have dropped from about $15 billion last year to $10 billion this year as crypto markets have cooled. The pivot to traditional finance Wintermute isn’t just talking about entering traditional markets. It’s already taken concrete regulatory steps. The firm’s US affiliate has registered as a broker-dealer with the SEC and joined FINRA, unlocking the ability to trade equities and related products on American exchanges. Right now, non-crypto trading accounts for roughly 10% of Wintermute’s revenue. The company wants to flip that ratio dramatically, targeting more than 50% of ...