Digital Asset Liquidity Provider Wintermute Closes $20 Million

By Annie Baker ● February 1, 2021
  • Wintermute — an algorithmic liquidity provider for digital assets — recently announced the close of a $20 million Series B round led by Lightspeed Venture Partners. These are the details.

Wintermute — an algorithmic liquidity provider for digital assets — recently announced the close of a $20 million Series B round led by Lightspeed Venture Partners with participation from Pantera Capital. And Jeremy Liew, Partner at Lightspeed, will join Wintermute’s Board of Directors.

Other investors joining the funding round include Sino Global Capital, Kenetic Capital, Rockaway Blockchain Fund, Hack VC, DeFi Alliance, and Avon Ventures, a venture capital fund affiliated with FMR LLC, the parent company of Fidelity Investments. And all existing investors, including Blockchain.com Ventures also participated.

Wintermute is a crypto-native market maker, focused on building a decentralized financial system by creating efficient liquid markets with transparent prices. And since the company’s launch in 2017, the team has become one of the largest liquidity providers in crypto markets, covering thousands of pairs across almost 50 crypto exchanges and trading platforms on CeFi, DeFi, and OTC.

The company has seen tremendous growth in 2020 growing at a 60% monthly rate and reaching $30 billion monthly trading volume by December. And Wintermute also provided liquidity for some of the most prominent projects in 2020 and is planning to support many more in 2021.

The team has big growth plans for 2021. And Wintermute is currently piloting its own RFQ platform with beta counterparties and is planning to launch it for institutional players within the first quarter.

Wintermute is also looking to scale the derivatives business. And while most of the team is based in London, Wintermute has always operated globally across venues in Asia, the US, and Europe.

The firm believes that with the launch of its RFQ and derivatives businesses, it will also expand its physical presence into Asia. And Wintermute plans to open its first international office in Singapore in the first quarter of 2021.

KEY QUOTES:

“Since we have some of the most competitive pricing in the market, we were literally pulled into this business by our counterparties and partners that we work with. The algorithms we use for OTC are the same we use for our proprietary trading, so we have an advantage when it comes to pricing. We take no fees on our OTC activities so counterparties can eliminate intermediaries and cut fees by trading with us directly. With the launch of RFQ we’ll be able to offer OTC trades at a greater scale.”

“We have historically focused on spot, but coming from traditional HFTs like Optiver, we have all the expertise in-house to provide liquidity in derivatives markets across perpetuals, futures, and options.”

— Evgeny Gaevoy, CEO of Wintermute

“Wintermute has grown almost 25x since Lightspeed led the company’s Series A round just six months ago. That rarely happens! We are excited to continue supporting Wintermute and their ambitious expansion plans going forward.”

— Jeremy Liew, Partner at Lightspeed.

“As crypto markets grow in size and complexity, and as decentralized exchanges begin to more directly connect market makers and users, the space will require liquidity providers that can evolve in tandem and keep markets efficient. We believe that Wintermute’s agile and sophisticated approach to market making will be key to unlocking liquid and efficient markets for this growing financial system.”

— Joey Krug, Co-CIO of Pantera Capital