Markets
StanChart’s Zodia Markets buys Elwood’s crypto OTC trading desk – Ledger Insights
Today Elwood Technologies confirmed Bloomberg last week’s report what Zodia Markets has acquired Elwood’s Jersey-regulated OTC trading desk for cryptocurrencies, Elwood Capital Management Ltd (ECML). Zodia Markets is an indirect subsidiary of Standard Chartered’s SC Enterprises.
Divestment means Elwood will now focus on its existing digital asset software-as-a-service (SaaS) business, which includes an execution management system (EMS) and a portfolio and risk management system (PMS).
The companies did not share terms of the deal. However, in May, Zodia Markets Holdings received an $8 million funding injection, according to corporate filings, following an identical funding amount in October 2023. It is unclear whether the May funding was related to the acquisition.
Zodia Markets
Zodia Markets launched a cryptocurrency exchange and brokerage in 2022, shortly before the collapse of FTX. Hong Kong-based cryptocurrency exchange OSL was a partner in the project and is a minority shareholder. It shut down the platform earlier this year and has focused on an OTC exchange settlement solution involving stablecoins that processes $50 to $60 million daily. The new offering bridges Zodia’s position in the cryptocurrency market with Standard Chartered’s position as a global settlement bank.
“This acquisition is a significant progression towards creating greater diversification in our service offering and footprint, enabling scale and accelerating product capabilities. Building on our exceptional growth in the first half of the year, we are well positioned to further capitalize on the global institutional demand for digital asset solutions,” said Usman Ahmad, Co-Founder and CEO of Zodia Markets.
“Acquiring a successful, established business with a similar regulatory mindset allows us to extend our offering to our incoming clients and provide our existing clients with a broader set of capabilities and value. Our commitment to driving sustained growth remains paramount as we continue to innovate at the forefront of the digital asset industry and be the go-to trading partner for institutions.”
Zodia Market’s growth in the first half was mirrored by its sister company Zodia Custodywhich announced a number of new clients this year.