Zodia Markets Acquires Elwood’s OTC Trading Arm, Bolstering Institutional Crypto Services

Zodia Markets, the digital asset trading business backed by Standard Chartered, has agreed to acquire Elwood Capital Management Ltd (ECML), the over-the-counter (OTC) trading arm of Elwood Technologies. This strategic move, announced on July 17, 2024, marks a significant development in the institutional cryptocurrency market.

The acquisition will see ECML, based in Jersey and regulated by the Jersey Financial Services Commission, integrated into Zodia Markets’ growing portfolio of services. Following the completion of the transaction, the entity will be rebranded as Zodia Markets Jersey Ltd.

Usman Ahmad, Co-Founder and CEO of Zodia Markets, emphasized the strategic importance of the acquisition: “This acquisition is a significant progression to create greater diversification in our service offering and footprint, enabling scale and accelerating product capability. 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.”

For Elwood Technologies, the sale represents a strategic shift towards focusing on its core software-as-a-service (SaaS) offerings. Chris Lawn, CEO of Elwood, stated, “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.”

Elwood will continue to develop its institutional-grade products, including an Execution Management System (EMS) with advanced liquidity access tools and a Portfolio & Risk Management System (PMS) with enhanced capabilities.

The deal is expected to significantly boost Zodia Markets’ daily OTC trading volumes, which currently range from $50 million to $60 million. The acquisition also expands Zodia Markets’ regulated presence, complementing its existing registrations with the UK’s Financial Conduct Authority and the Central Bank of Ireland.

This move comes amid growing institutional interest in the cryptocurrency sector. Zodia Markets, with its backing from Standard Chartered’s SC Ventures, is positioning itself as a key player in bridging traditional finance with the digital asset space.

The acquisition aligns with recent developments in the crypto market, including Zodia Markets’ partnership with Fireblocks to enhance digital asset operations and Standard Chartered’s reported exploration of establishing its own trading desk for Bitcoin and Ethereum.