Wintermute OTC Head: Bank participation in crypto trading is essentially a brokerage model, and they cannot hold positions or engage in proprietary trading.

Odaily Planet Daily reported that in response to the interpretive letter issued by the Office of the Comptroller of the Currency (OCC), which clarifies that nationwide banks participating in risk-free transactions involving digital assets are considered legitimate banking activities and can serve as intermediaries in cryptocurrency trading, Wintermute OTC head Jake stated on social media that the process of banks participating in crypto trading is fundamentally different from proprietary trading. He pointed out that typically, banks purchase crypto assets from clients during transactions and immediately transfer the positions to liquidity providers (LPs). At the technical level, they only acquire ownership of the crypto assets for a very short period to facilitate trade matching, but do not actually hold inventory nor bear price fluctuation risks. From an economic substance perspective, this model is considered brokerage business; banks can facilitate buy and sell transactions between parties but cannot hold positions or engage in proprietary trading.