Web3 investment firm Borderless Capital acquires CTF Capital to bring artificial intelligence and quant expertise

Borderless Capital, a web3-focused investment firm, announced on Tuesday that it will acquire CTF Capital, a Miami-based quantitative trading and asset management firm with technology and operations teams based in Latin America. Financial details of the deal were not disclosed. The deal is Borderless’s first acquisition since its founding in 2018.

With this acquisition, Borderless Capital will add AI-infused quantitative trading expertise to its business. The deal also marks the company’s geographic expansion into Latin America, with plans to open a new office in Argentina, one of the leading hubs of web3 technology innovation, in the second quarter of this year.

CTF Capital builds trading models and features that leverage artificial intelligence (AI) and machine learning (ML) strategy engines; automated market making (AMM), a decentralized exchange that uses algorithms to trade digital assets; and maximum extractable value (MEV) strategy. The MEV strategy allows block miners to profit from transaction order manipulation in decentralized finance. In the rapidly evolving world of web3, where tokens and blockchains can rise and fall quickly, flexible trading is crucial for any cryptocurrency-focused investment firm.

After merging with CTF Capital, Borderless will have more than $500 million in assets under management (AUM). Borderless manages six funds, including a $50 million cross-chain fund and Algorand fund. All existing funds managed by CTF Capital will be folded into Borderless’ Multi-Strategy Fund V LP., which launched last year and currently has $100 million under management. The multi-strategy fund is an “open-end hedge fund focused on generating maximum risk-adjusted returns for investors in liquid and soon-to-be liquid digital assets.”

The entire CTF team of 11 employees, including two partners, joined Wujiang Capital. After the acquisition, the total number of Wujiang Capital’s teams increased to nearly 40 employees.

“From a technology perspective, the CTF Capital team has been working for over three years on developing a machine learning and artificial intelligence driven blockchain investment platform, as well as new innovations and emerging on-chain opportunities such as participation in MEV or Maximum Extractable Borderless Capital co-founder and managing partner David Garcia told TechCrunch.

In terms of financial capabilities, Borderless anticipates synergies from the acquisition, which brings a new group of limited partners (LPs) from Latin America. It will help Borderless Investments position and create new opportunities in the region.

“Borderless already has significant exposure through several portfolio companies in the region [Latin America].On top of that, we have a large base of investors and clients from Latin America, many of whom were part of CTF Capital Funds prior to the acquisition and have opened local offices in the region [Argentina]we will be able to provide them with better, more customized, more direct service,” Garcia said.

Borderless Capital’s portfolio companies include Securitize, an end-to-end platform for digital tokenized securities; Wormhole, a blockchain infrastructure company; Blockdaemon, one of Borderless’ first unicorns, a blockchain infrastructure company; and Helium Network, a A decentralized network of physical infrastructure that provides wireless connectivity for IoT devices and mobile devices.