🌎 Zodia Markets to Acquire Elwood’s Crypto OTC Business

Standard Chartered’s crypto arm, Zodia Markets, is currently in discussions to acquire part of Elwood Technologies’ crypto over-the-counter (OTC) business. This move would mark a significant step for Zodia Markets as it aims to establish a trading desk for Bitcoin (BTC) and Ethereum (ETH).

According to a Bloomberg report, the deal is nearing completion and is expected to close by August. However, the transaction size remains undisclosed. By acquiring Elwood’s crypto OTC business, Zodia Markets would secure licenses for virtual asset service provider services and investment businesses in Jersey. A source familiar with the matter revealed that Zodia is keen on expanding its OTC settlement services.

Elwood Technologies, founded in 2018 by Alan Howard, raised $70 million from investors including Goldman Sachs and Dawn Capital. Despite reporting a loss of $16.9 million for the fiscal year ending March 2023, Elwood has been contemplating the sale of part of its business since late May. The firm has shifted its focus towards portfolio management and risk management services rather than trading.

In addition to its trading platform, Zodia Markets offers custodian services through its entity, Zodia Custody. In late June, Zodia Custody secured funding from NAB Ventures, the venture capital arm of National Australia Bank (NAB). This funding will be used to enhance its operations in Australia, especially in onboarding local digital asset exchanges in light of expected regulatory changes by 2025.