Zodia Markets in Acquisition Talks

Zodia Markets, the crypto subsidiary of British multinational Standard Chartered, is reportedly in talks to buy Elwood Capital Management.

Elwood Capital is a crypto firm backed by billionaire hedge fund manager Alan Howard. The potential acquisition is making waves in the crypto industry.

According to a Bloomberg report published on July 9, citing people familiar with the matter, the deal between Zodia Markets and Elwood Capital is expected to close before the end of this month.

Elwood Capital offers over-the-counter crypto trading and settlement services, making it a valuable target for Zodia.

Acquiring Elwood Capital would grant Zodia Markets licenses as a virtual asset provider and investment business in Jersey. Jersey is an island British crown dependency off the coast of Northern France.

This strategic move could significantly enhance Zodia's operational capabilities and market reach.

Elwood Capital shuttered its services earlier this year due to tepid demand for crypto products.

The firm's CEO, Usman Ahmad, disclosed this information to Bloomberg in June. Despite the closure, Elwood's assets remain attractive for acquisition.

"Howard put several of his private holdings in crypto companies up for sale in February, aiming to reinvest the earnings into Brevan Howard Digital," the crypto subsidiary of his hedge fund.

Standard Chartered has been making significant efforts to expand its footprint in the crypto industry.

On June 21, reports surfaced that the bank might launch its trading desk for Bitcoin (BTC) and Ether (ETH).

If realized, this would make Standard Chartered one of the first global banking institutions to engage in the spot trading of cryptocurrencies.

Zodia Markets and Elwood Capital Management waited to respond to Cointelegraph's request for comment. The industry is watching closely as this potential acquisition could set a precedent for future deals in the crypto space.