World Crypto Global
- Written by: Damian Chmiel
- Wed, 17 Jul 2024
- Israel
StandardChartered-backed Zodia Markets has agreed to acquire Elwood Capital ManagementLtd (ECML), the digital asset over-the-counter (OTC) trading business of ElwoodTechnologies, in a deal announced today (Wednesday). The acquisition, set to becompleted by August, will expand Zodia Markets' regulated presence and enhanceits services to institutional clients worldwide.Zodia Markets AcquiresElwood's OTC Trading Business ElwoodTechnologies, a provider of digital asset execution and portfolio managementsoftware, is divesting its OTC trading arm to focus on its coresoftware-as-a-service (SaaS) offerings. The sale aligns with Elwood's plan todevelop its execution management system (EMS) and portfolio management system(PMS) for institutional clients.Today'sannouncement confirms last week's reports that ZodiaMarkets is preparing for an acquisition, as reported by Bloomberg.Thissale marks an important new chapter for Elwood and strengthens our position asa leading provider of execution and portfolio management software for globalinstitutions that trade and manage digital assets, said Chris Lawn, CEO ofElwood. The sale of our OTC trading business supports Elwoods strategic planto build a world-class end-to-end EMS and PMS software platform and allows usto fully dedicate our resources to the SaaS business.Zodia Markets is pleased to announce that it has agreed to acquire Elwood Capital Management Ltd, Elwoods Digital Asset OTC trading business based in Jersey and regulated by the Jersey Financial Services Commission. https://t.co/IQN8WMf8AL #ZodiaMarkets #OTC #DigitalAssets pic.twitter.com/mejcEL5IvW Zodia Markets (@zodiamarkets) July 17, 2024For ZodiaMarkets, the acquisition represents a next step in its expansion strategy. Thedeal will provide the company with licenses for virtual asset service providerservices and investment businesses in Jersey, enhancing its ability to offerOTC settlement services. Thetransaction comes as Standard Chartered, Zodia Markets' parent company, isreportedly exploring the establishment of its own trading desk for Bitcoin andEthereum. This move could position Standard Chartered as one of the firstglobal financial institutions to engage directly in cryptocurrency spottrading.Thisacquisition is a significant progression to create greater diversification inour service offering and footprint, enabling scale and accelerating productcapability, commented Usman Ahmad, Co-Founder and CEO of Zodia Markets. Buildingon our exceptional growth in the first half of the year, we are well-positionedto further capitalize on the global institutional demand for digital assetsolutions.Followingthe completion of the transaction, ECML will be rebranded as Zodia MarketsJersey Ltd. The deal is expected to boost Zodia Markets' daily OTC tradingvolumes, which currently range from $50 million to $60 million.A fewmonths ago, ZodiaMarkets also partnered with Fireblocks, an enterprise platform specializingin digital asset operations and blockchain-based innovation. The strategiccollaboration, announced today (Thursday), aims to tackle existing challengesin the correspondent banking landscape while enhancing operational efficiencythrough the utilization of digital assets.RegardingStandard Chartered, the bank announced its latestcollaboration two months ago, forming an agreement with Clearstream toenable users to access funds domiciled in the United Arab Emirates (UAE). Thiscollaboration aims to enhance fund processing and execution. It also aligns withrecent regulatory changes from the Securities and Commodity Authority of theUAE.This article was written by Damian Chmiel at www.financemagnates.com.
