Zodia Markets, the crypto arm of British multinational bank Standard Chartered, is reportedly in discussions to acquire Elwood Capital Management. Billionaire hedge fund manager Alan Howard backs the crypto firm, which focuses on over-the-counter (OTC) crypto trading and settlement services.
According to sources, the deal between Zodia Markets and Elwood Capital is expected to finalize by the end of this month. This acquisition will provide Zodia Markets with licenses as a virtual asset provider and investment business in Jersey, a British Crown dependency off the coast of Northern France. Consequently, this move is anticipated to strengthen Zodia’s focus on OTC settlement services.
Background on Zodia Markets
Launched in 2021, Zodia Markets is a crypto exchange created through a joint venture between Standard Chartered’s venture capital subsidiary and Hong Kong’s BC Technology Group. Despite its initial launch, Zodia Markets paused its services earlier this year due to low demand for crypto products. Usman Ahmad, the firm’s CEO, mentioned this in a June interview with Bloomberg.
Alan Howard, the billionaire hedge fund manager of Brevan Howard Asset Management, began selling several of his private holdings in crypto companies in February. He plans to reinvest the proceeds from these sales into Brevan Howard Digital, the hedge fund’s crypto subsidiary.
Also Read: Bitcoin to Hit $100,000? Standard Chartered’s 2024 Prediction
Standard Chartered’s Expanding Crypto Presence
Standard Chartered has been actively expanding its presence in the crypto industry. On June 21, reports indicated that the bank might be planning to launch its own trading desk for Bitcoin and Ether. If this launch proceeds, Standard Chartered would become one of the first global banking institutions to engage in the spot trading of cryptocurrencies.
This acquisition and the bank’s ongoing crypto initiatives could position Standard Chartered as a significant player in the cryptocurrency market. By integrating Elwood Capital’s expertise in OTC trading and leveraging new licenses, Zodia Markets can enhance its service offerings and potentially attract more clients. Furthermore, Standard Chartered’s potential trading desk for Bitcoin and Ether underscores the bank’s commitment to embracing digital assets and meeting growing market demand.
