Today Elwood Technologies confirmed a Bloomberg report last week that Zodia Markets has bought Elwood’s Jersey-regulated OTC trading desk for cryptocurrencies, Elwood Capital Management Ltd (ECML). Zodia Markets is an indirect subsidiary of Standard Chartered’s SC Ventures.
The divestment means Elwood will now focus on its existing digital assets software-as-a-service (SaaS) business, which includes an execution management system (EMS) and a portfolio and risk management system (PMS).
The companies did not share the terms of the deal. However, in May Zodia Markets Holdings received a funding injection of $8 million, according to corporate filings, following an identical funding amount in October 2023. It’s unclear whether the May funding related to the acquisition.
Zodia Markets
Zodia Markets launched a crypto brokerage and exchange in 2022, shortly before the FTX collapse. Hong Kong crypto exchange OSL was a partner for the project and is a minority shareholder. It shuttered the platform earlier this year and has been focusing on an OTC FX settlement solution involving stablecoins which processes $50-$60 million daily. The new offering bridges Zodia’s position in the crypto market and Standard Chartered’s standing as a global settlement bank.
“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 capitalise on the global institutional demand for digital asset solutions,” said Usman Ahmad, Co-Founder and CEO of Zodia Markets.
“Acquiring a successful, established business with a similar regulatory-first mindset allows us to extend our offering to the clients we will welcome and provide our existing clients with a broader suite of capabilities and value. Our commitment to driving sustained growth remains paramount, as we continue to innovate at the forefront of the digital asset sector and be the go-to trading partner for institutions.”
Zodia Market’s growth in the first half has been mirrored by sister firm Zodia Custody, which announced a string of new clients this year.
