Bitget Launches $300M Project Archimedes To Fund Institutional Traders

Bitget exchange has announced the Project Archimedes. The project will mobilise institutional investment in the amount of $300 million. It is aimed at firms in the quantitative trading business, asset managers and market makers.

Bitget’s $300M Capital Program Targets Quant Firms

There are two funding tracks in the Bitget program. There is an allocation of $100 million for the first one. It is aimed at new and developing quantitative companies. Eligible companies will have to be engaged in market neutral strategies. Bitget will issue capital based on the terms agreed upon for returns and risks.

Interest free loans are available on the second track for $200 million. Designed for existing institutions with proved strategies. Bitget noted that qualifying is based on specified trading volume and/or position criteria. The idea behind the structure is to reduce funding expenses and increase trading capital.

The first stage of the program will begin with strategies that are market neutral. Firms need to have operating records in place. They will also be subject to strategy reviews and due diligence. An assessment of drawdown will be carried out as part of the evaluation.

“Strong strategies often reach a point where talent is no longer the constraint but capital might,” stated Bitget CEO Gracy Chen. She even added, “Project Archimedes gives capable teams the acceleration it needs to scale, while aligning capital, risk and execution around sustainable performance. Our goal is to boost over fifty projects in the next six months with this capital.”

Bitget stated that quantitative companies are facing new difficulties within the market. The profits of the traditional crypto arbitrage have been narrowed. Competition has risen in well-established markets.

Companies are thus looking for other ventures. Examples of these are basis spreads and funding-rate differences.

Focus On Tokenization Push

The crypto exchange has also placed its focus is on tokenized assets. One such use case that Bitget mentioned was tokenized US stocks. Spot and derivatives markets can be used for arbitrage strategies. These types of trades often involve money on both sides. This can result in account margins being locked as a result of different accounts.

It also has another structure, its Unified Account. rToken spot positions that are eligible may be used as collateral in derivatives trading. Institutions are not required to transfer funds from one account to another. The underlying stock Friday closing price will be used for weekend collateral values.

Project Archimedes will be accepting participants on a first come first served basis. Capital will be used in a phased manner. Bitget Institutional will update participation and deployed funds. It will also provide research and institutional case studies.

The program will match the participating firms with Bitget’s liquidity and trading services. It will also make available its institutional network.

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