Crypto market maker Wintermute lands SEC approval to trade equities and ETF blocks

Crypto market maker Wintermute has secured broker-dealer status in the U.S., giving the firm a regulated route into Wall Street as crypto trading and traditional securities markets draw closer together.

New York-based Wintermute USA LLC registered with the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). The unit will operate as a proprietary trading firm rather than a retail broker.

The registration lets Wintermute trade stocks and equity options, provide liquidity to exchanges and over-the-counter counterparties, and act as an authorized participant for exchange-traded funds (ETFs), including crypto-linked funds.

Authorized participants create and redeem large blocks of ETF shares, a process that helps keep an ETF's market price close to the value of its holdings.

Wintermute described the unit as proprietary-only and did not announce retail brokerage services.

Authorized participants create and redeem blocks of ETF shares directly with fund issuers, helping keep fund prices aligned with their underlying assets.

The registration also lets Wintermute seek market-making roles on exchanges including the New York Stock Exchange and Nasdaq. The firm has already lined up ETF issuers to work with, the Wall Street Journal reported.