Markets
Zodia Markets in talks to acquire Elwood Capital
Standard Chartered’s cryptocurrency subsidiary Zodia Markets is reportedly in advanced talks to acquire Elwood Capital Management, a firm associated with billionaire Alan Howard, with the transaction expected to close by the end of the month, Bloomberg reports.
Elwood Capital Management focuses on providing OTC cryptocurrency trading and settlement services to its clients. In the event of the acquisition, Zodia Markets will be able to obtain licenses for it as a virtual asset provider and investment business in Jersey, which will enhance its OTC settlement services.
Launched in 2021 by Standard Chartered Bank’s venture capital arm and Hong Kong-based BC Technology Group, Zodia Markets had to halt operations earlier this year due to low demand for cryptocurrency products, according to the company’s CEO Usman Ahmad in June.
According to BloombergMeanwhile, Alan Howard, who is associated with Brevan Howard Asset Management, sold several of his private crypto holdings in February to invest the proceeds in the hedge fund’s new crypto division, Brevan Howard Digital.
Standard Chartered is reportedly exploring entry into the cryptocurrency space, with plans to launch a trading desk for Bitcoin and Ether, potentially becoming a pioneer among global banks in direct cryptocurrency trading.
The potential acquisition of Elwood Capital Management is a clear sign of Standard Chartered’s increasing focus on the burgeoning cryptocurrency market, as the bank seeks to strengthen its OTC crypto services in light of ongoing changes in the sector.
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