Cryptocurrency market maker Wintermute is reportedly in advanced discussions with Tencent Holdings and other potential investors to raise fresh capital at a valuation of $2 billion**, according to Bloomberg, citing sources familiar with the matter. The funding round could see early investors and employees offload part of their stakes, while new shares are issued by the company—potentially bringing the total transaction size to between **$200 million and $300 million.
This move, if finalized, would mark one of the largest venture capital investments in the crypto sector in 2025, a year marked by cautious investor sentiment despite Bitcoin’s strong performance earlier in the year. With venture funding still subdued across the digital asset landscape, a strategic investment from a tech giant like Tencent could signal renewed institutional confidence in blockchain infrastructure players.
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Wintermute: A Key Player in Global Crypto Liquidity
Wintermute Trading Ltd., headquartered in London, is one of the world’s most prominent algorithmic trading firms and a top-tier liquidity provider in digital asset markets. It actively trades on over 50 major exchanges, including Binance, Bybit, and Coinbase, facilitating seamless price discovery and deep order books across centralized and decentralized platforms.
To date, Wintermute has driven nearly $5 trillion in cumulative trading volume, underpinning its reputation as a critical backbone of crypto market efficiency. Its high-frequency trading systems leverage advanced quantitative models to manage risk and optimize execution across volatile assets like Bitcoin and Ethereum.
The firm’s infrastructure enables smoother onboarding for institutional participants by reducing slippage and ensuring reliable pricing—key factors in the growing adoption of crypto-based financial products.
Pivotal Role in Hong Kong’s Spot Crypto ETF Launch
In May 2025, Wintermute played a central role in the launch of Hong Kong’s spot cryptocurrency ETFs, a landmark development for regulated digital asset investment vehicles in Asia. The company committed to providing market-making services for OSL and HashKey—Hong Kong’s only two licensed digital asset trading platforms authorized to offer retail crypto trading.
By supplying continuous liquidity for Bitcoin (BTC) and Ethereum (ETH), Wintermute ensures that ETF shares can be created and redeemed efficiently, aligning their market prices closely with underlying net asset values. This function is vital for preventing premium/discount distortions and fostering investor trust in newly launched funds.
This strategic positioning not only strengthens Wintermute’s presence in Asia but also highlights its ability to operate within regulated frameworks—a growing necessity as global markets demand compliance and transparency from crypto market participants.
Proven Track Record in Fundraising and Strategic Investments
Wintermute has previously raised funds in multiple rounds, demonstrating consistent appeal among top-tier investors. In January 2021, it secured $20 million in Series B funding led by Silicon Valley powerhouse Lightspeed Venture Partners, with participation from renowned crypto-focused firms such as Blockchain Ventures, Pantera Capital, and HackVC.
Beyond raising capital, Wintermute itself acts as an active investor in the blockchain ecosystem. Through its venture arm, it has participated in over 100 early-stage investments spanning more than 30 countries. Its investment portfolio covers a diverse range of sectors within Web3, including:
- Cryptocurrency exchanges
- Lending and credit protocols
- Middleware and developer tools
- Blockchain gaming and NFT platforms
- Infrastructure and node services
- Security and auditing solutions
- Digital asset management platforms
This dual role—as both a liquidity engine and a strategic capital allocator—positions Wintermute uniquely at the intersection of market structure and innovation acceleration.
Tencent’s Expanding Footprint in Blockchain and Web3
While cryptocurrency is not part of Tencent’s core business, the Chinese tech giant has shown increasing interest in blockchain-enabled technologies. Prior investments include stakes in companies like Everledger, a blockchain and AI-powered platform for luxury goods authentication, and Immutable, a leading developer of blockchain-based gaming infrastructure.
A potential investment in Wintermute would further solidify Tencent’s quiet but strategic push into Web3 infrastructure. Unlike direct involvement in speculative assets, backing established players in trading and liquidity allows Tencent to gain exposure to blockchain’s financial plumbing without regulatory overreach.
Moreover, such a partnership could open doors for future collaborations in areas like tokenized assets, digital identity, or even metaverse economies—sectors where Tencent already has significant R&D investments.
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Frequently Asked Questions (FAQ)
Q: What is Wintermute’s primary business?
A: Wintermute is a leading algorithmic trading firm specializing in providing liquidity across cryptocurrency markets. It operates on over 50 exchanges globally and helps stabilize prices through automated market-making strategies.
Q: Why is Tencent investing in a crypto firm?
A: While Tencent doesn’t operate directly in cryptocurrency trading, its investments reflect a broader strategy to support blockchain infrastructure—such as identity verification, gaming economies, and tokenization—that aligns with its long-term digital ecosystem goals.
Q: How does Wintermute contribute to ETFs?
A: As a market maker, Wintermute ensures sufficient buying and selling activity for Bitcoin and Ethereum, enabling smooth creation and redemption of ETF shares. This helps keep ETF prices closely tied to actual asset values.
Q: Is this funding round confirmed?
A: As of now, neither Wintermute nor Tencent has officially commented on the talks. The details are based on anonymous sources cited by Bloomberg.
Q: What makes this deal significant for the crypto industry?
A: A $2 billion valuation and potential $300 million raise would be among the largest crypto VC deals of 2025, especially notable during a period of restrained investment—highlighting enduring confidence in foundational crypto infrastructure.
Q: Where is Wintermute based?
A: The company is headquartered in London, UK, but operates globally with teams supporting exchanges and institutional clients across Asia, Europe, and North America.
Looking Ahead: Institutional Validation Meets Market Infrastructure
The reported talks between Wintermute and Tencent underscore a growing trend: traditional tech giants are increasingly recognizing the value of robust crypto market infrastructure. Rather than chasing speculative trends, they’re placing bets on companies that enable stability, scale, and compliance.
For Wintermute, securing strategic capital from a player like Tencent could accelerate its expansion into regulated markets, enhance its technological capabilities, and deepen partnerships with institutional financial entities.
As digital assets continue evolving from fringe experiments to mainstream financial instruments, firms like Wintermute will remain at the forefront—ensuring markets function efficiently, transparently, and securely.
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