Zodia Markets Expands with Strategic Acquisition

Zodia Markets, a digital asset trading firm backed by Standard Chartered's SC Ventures, intends to purchase Elwood Technologies' over-the-counter (OTC) trading arm.

Specifically, Zodia Markets will acquire Elwood Capital Management Ltd (ECML) for an undisclosed amount, further solidifying Standard Chartered's foothold in cryptocurrency.

Elwood Refocuses on SaaS

According to a press release, Elwood is offloading ECML to focus on its institutional-grade Software as a Service (SaaS) offerings.

These include a Portfolio and Risk Management System (PMS) and an Execution Management System (EMS). The EMS provides clients enhanced liquidity access, while the PMS delivers advanced portfolio management and risk capabilities.

Elwood CEO Chris Lawn emphasized that this sale marks a new chapter for 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 dedicate our resources to the SaaS business fully," said Lawn.

He added that Elwood has invested heavily in its software platform, recently completing the integration of a new PMS with advanced capabilities.

Lawn also expressed confidence in Zodia Markets, ensuring a smooth transition as the OTC trading arm will be rebranded as Zodia Markets Jersey Ltd.

"As the crypto industry matures, increased competition and mergers will force companies to make tough choices," said Lawn.

Zodiac's Strategic Diversification

For Zodia, acquiring ECML is a move to diversify its services. CEO and co-founder Usman Ahmad stated that the acquisition will scale the company's product capability and offer clients "a broader suite of capabilities and value."

Zodia Markets' OTC arm handles daily trading volumes of up to $60 million. Ahmad expects these numbers to rise significantly, driving sustained growth and innovation in the digital asset sector.

The acquisition confirms recent news that Zodia Markets and Elwood were in advanced talks for a possible sale. Bloomberg reported last week that sources familiar with the negotiations indicated that both companies were nearing an agreement.

Standard Chartered's Crypto Moves

Standard Chartered has been making calculated steps to deepen its involvement in cryptocurrency. Last month, it was reported that Standard Chartered is developing a trading desk for Bitcoin (BTC) and Ether (ETH) services to be operated from London. This would be one of the first spot cryptocurrency trading services a global financial bank offers.

This strategic acquisition and ongoing developments underscore Standard Chartered's commitment to expanding its footprint in the rapidly evolving digital asset space.