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Standard
Chartered-backed Zodia Markets has agreed to acquire Elwood Capital Management
Ltd (ECML), the digital asset over-the-counter (OTC) trading business of Elwood
Technologies, in a deal announced today (Wednesday). The acquisition, set to be
completed by August, will expand Zodia Markets’ regulated presence and enhance
its services to institutional clients worldwide.
Elwood
Technologies, a provider of digital asset execution and portfolio management
software, is divesting its OTC trading arm to focus on its core
software-as-a-service (SaaS) offerings. The sale aligns with Elwood’s plan to
develop its execution management system (EMS) and portfolio management system
(PMS) for institutional clients.
Today’s
announcement confirms last week’s reports that Zodia
Markets is preparing for an acquisition, as reported by Bloomberg.
“This
sale marks an important new chapter for Elwood and strengthens our position as
a leading provider of execution and portfolio management software for global
institutions that trade and manage digital assets,” said Chris Lawn, CEO of
Elwood. “The sale of our OTC trading business supports Elwood’s strategic plan
to build a world-class end-to-end EMS and PMS software platform and allows us
to fully dedicate our resources to the SaaS business.”
For Zodia
Markets, the acquisition represents a next step in its expansion strategy. The
deal will provide the company with licenses for virtual asset service provider
services and investment businesses in Jersey, enhancing its ability to offer
OTC settlement services.
The
transaction comes as Standard Chartered, Zodia Markets’ parent company, is
reportedly exploring the establishment of its own trading desk for Bitcoin and
Ethereum . This move could position Standard Chartered as one of the first
global financial institutions to engage directly in cryptocurrency spot
trading.
“This
acquisition is a significant progression to create greater diversification in
our service offering and footprint, enabling scale and accelerating product
capability,” Usman Ahmad, Co-Founder and CEO of Zodia Markets, commented. “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.”
Following
the completion of the transaction, ECML will be rebranded as Zodia Markets
Jersey Ltd. The deal is expected to boost Zodia Markets’ daily OTC trading
volumes, which currently range from $50 million to $60 million.
A few
months ago, Zodia
Markets also partnered with Fireblocks, an enterprise platform specializing
in digital asset operations and blockchain-based innovation. The strategic
collaboration, announced today (Thursday), aims to tackle existing challenges
in the correspondent banking landscape while enhancing operational efficiency
through the utilization of digital assets.
Regarding
Standard Chartered, the bank announced its latest
collaboration two months ago, forming an agreement with Clearstream to
enable users to access funds domiciled in the United Arab Emirates (UAE). This
collaboration aims to enhance fund processing and execution and aligns with
recent regulatory changes from the Securities and Commodity Authority of the
UAE
Standard
Chartered-backed Zodia Markets has agreed to acquire Elwood Capital Management
Ltd (ECML), the digital asset over-the-counter (OTC) trading business of Elwood
Technologies, in a deal announced today (Wednesday). The acquisition, set to be
completed by August, will expand Zodia Markets’ regulated presence and enhance
its services to institutional clients worldwide.
Elwood
Technologies, a provider of digital asset execution and portfolio management
software, is divesting its OTC trading arm to focus on its core
software-as-a-service (SaaS) offerings. The sale aligns with Elwood’s plan to
develop its execution management system (EMS) and portfolio management system
(PMS) for institutional clients.
Today’s
announcement confirms last week’s reports that Zodia
Markets is preparing for an acquisition, as reported by Bloomberg.
“This
sale marks an important new chapter for Elwood and strengthens our position as
a leading provider of execution and portfolio management software for global
institutions that trade and manage digital assets,” said Chris Lawn, CEO of
Elwood. “The sale of our OTC trading business supports Elwood’s strategic plan
to build a world-class end-to-end EMS and PMS software platform and allows us
to fully dedicate our resources to the SaaS business.”
For Zodia
Markets, the acquisition represents a next step in its expansion strategy. The
deal will provide the company with licenses for virtual asset service provider
services and investment businesses in Jersey, enhancing its ability to offer
OTC settlement services.
The
transaction comes as Standard Chartered, Zodia Markets’ parent company, is
reportedly exploring the establishment of its own trading desk for Bitcoin and
Ethereum . This move could position Standard Chartered as one of the first
global financial institutions to engage directly in cryptocurrency spot
trading.
“This
acquisition is a significant progression to create greater diversification in
our service offering and footprint, enabling scale and accelerating product
capability,” Usman Ahmad, Co-Founder and CEO of Zodia Markets, commented. “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.”
Following
the completion of the transaction, ECML will be rebranded as Zodia Markets
Jersey Ltd. The deal is expected to boost Zodia Markets’ daily OTC trading
volumes, which currently range from $50 million to $60 million.
A few
months ago, Zodia
Markets also partnered with Fireblocks, an enterprise platform specializing
in digital asset operations and blockchain-based innovation. The strategic
collaboration, announced today (Thursday), aims to tackle existing challenges
in the correspondent banking landscape while enhancing operational efficiency
through the utilization of digital assets.
Regarding
Standard Chartered, the bank announced its latest
collaboration two months ago, forming an agreement with Clearstream to
enable users to access funds domiciled in the United Arab Emirates (UAE). This
collaboration aims to enhance fund processing and execution and aligns with
recent regulatory changes from the Securities and Commodity Authority of the
UAE
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