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Match made in Miami: Web3 VC Borderless Capital acquires AI-focused CTF Capital

Nancy Dahlberg
Nancy Dahlberg
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By Nancy Dahlberg

Borderless Capital, a Miami-based investment firm that specializes in web3, announced Tuesday that it is acquiring CTF Capital, a quantitative trading and asset management firm also headquartered in the Magic City.

For Borderless Capital, which relocated its HQ to Miami in 2021, the deal enriches its investment suite with AI-driven strategies and advanced quant trading methodologies. What’s more, CTF already had operations, portfolio companies and LPs in Latin America. This will give the Borderless team a head start on its planned expansion to the region, where grassroots adoption of digital assets is one of the strongest in the world, Borderless said. Borderless plans to open an HQ for its LatAm operations in Argentina in Q2. 

Borderless is an early investor in Miami startups Securitize, an end-to-end platform for tokenized securities and IntoTheBlock, a crypto market intelligence company. The firm also backs blockchain technology company Algorand, the blockchain infrastructure unicorn Blockdaemon, and Helium Network, a decentralized physical infrastructure network for wireless connectivity that has been expanding in Miami. Borderless has over $500 million in assets under management across one hedge fund and five venture capital funds.

CTF Capital is a quantitative crypto asset investment manager focused on exploiting investment opportunities through digital assets. For the quickly moving web3 world, the firm built trading models and capabilities that leverage AI and machine learning.

David Garcia, co-founder and managing partner of Borderless Capital, said the “synergistic and complementary” merger positions Borderless for its next phase of growth, in a time when institutions and large organizations are driving the market adoption and validating this asset class.

“We are committed to supporting local innovators like Securitize, IntoTheBlock and emerging companies and look forward to extending our reach to the LatAm community by establishing a new base in Argentina. Our goal is to maintain a strong collaboration, bridging these two regions in technology innovation,” Garcia added in comments to Refresh Miami.

“The integration between CTF Capital and Borderless Capital will help us scale the business in terms of volume and product development, ultimately translating into better returns, investment allocation and risk management,” said Brian Prilick, former CEO of CTF Capital and now a Borderless partner, in a statement.

With this acquisition, the existing funds managed by CTF Capital will merge with Borderless Capital’s Multi-Strategy Fund V LP, an open-ended hedge fund that was launched earlier last year with $100 million under management. Terms of the acquisition were not disclosed.

Borderless and CTF were doing business together before Borderless Capital’s relocation to Miami, but the companies got closer after Borderless’ move, Garcia said. The 11-person team of CTF Capital, including two partners, is now part of the Borderless Capital team and its affiliate group of companies. With the acquision, Borderless Capital’s team has grown to nearly 40 people.

As to what this means for Miami, Garcia adds: “We now have four partners working from Miami after this acquisition and planning more initiatives through our DePIN Funds for Miami. DePIN is a new paradign of innovation that leverages web3 incentive models to crowdsource, fund and scale a global network of physical infrastructure for real world utility.”

Follow Nancy Dahlberg on X @ndahlberg and email her at [email protected].

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