Standard Chartered-Backed Zodia Markets to Acquire Elwood Technologies’ OTC Trading Desk

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As a seasoned crypto investor with a background in finance and technology, I’ve witnessed the rapid evolution of the digital asset industry over the past few years. I’ve seen countless companies emerge and some unfortunately fade away. The latest development between Zodia Markets and Elwood Technologies is an intriguing move that speaks volumes about the maturing crypto market.

Zodia Markets, a digitally focused securities trading company funded by Standard Chartered’s investment arm SC Ventures, has announced its intent to acquire Elwood Capital Management Ltd (ECML), the over-the-counter (OTC) trading division of Elwood Technologies – a prominent software provider in the digital asset sector. The financial details of this deal remain undisclosed.

Elwood Giving Up ECML to Zodia For Better Software Focus

Based on the press announcement, Elwood is transferring its ECML asset to Zodia Markets in order to devote more resources to developing and offering top-tier Software as a Service (SaaS) solutions for institutions. Among these offerings are a Portfolio & Risk Management System (PMS) and an Execution Management System (EMS). The EMS facilitates enhanced access to liquidity for clients, whereas the PMS delivers sophisticated portfolio management features with risk assessment capabilities.

According to Chris Lawn, the CEO of Elwood, the recent sale signifies a fresh start for our company as we strengthen our role in providing top-tier execution and portfolio management services for international crypto trading firms on a global scale.

“The sale of our OTC trading business contributes to Elwood’s goal of constructing a premier end-to-end Electronic Trading Platform (ETP) and Portfolio Management System (PMS) software solution. This allows us to allocate all our resources towards our Software-as-a-Service (SaaS) business in alignment with our mission. Notably, we have been putting substantial funds into enhancing our software platform, recently finishing the development and linking of a new PMS featuring advanced functionalities.”

I, too, shared Elwood’s faith in Zodia Markets during our discussion. Furthermore, we are committed to collaborating closely to ensure a seamless transition following the sale. Post-deal, the OTC trading arm will undergo a name change and operate as Zodia Markets Jersey Ltd.

In an email to CoinDesk, Elwood’s CEO, Lawn, elaborated on the rationale behind the sale. He expressed that as the crypto market evolves, intensified competition and consolidation will compel businesses to make tough choices. For Elwood specifically, the tactical move is to concentrate on its technology offerings as a primary focus, thereby relinquishing its Over-the-Counter (OTC) business.

Zodia to Diversify and Deepen Standard Chartered’s Crypto Foray

According to Usman Ahmad, the CEO and co-founder of Zodia, the company’s strategy involves expanding its range of offerings. The acquisition of ECML is a key step towards achieving this diversification and enhancing Zodia Markets’ product capabilities. Usman expressed his intention to provide clients with an extended array of features and benefits, thereby fueling continuous expansion and advancement in the digital asset market. Currently, Zodia Markets’ OTC division manages daily trading volumes of approximately $60 million, a figure that Usman anticipates will see substantial growth following this development.

Recent reports from Bloomberg indicated that Zodia Markets and Elwood were in advanced stages of discussion regarding a potential sale. Insider sources privy to the confidential negotiations claimed an imminent deal was forthcoming.

Standard Chartered has been strategically expanding its role in the crypto sector. According to recent reports by Coinspeaker, this international financial institution is developing a dedicated trading desk for Bitcoin (BTC) and Ether (ETH) transactions. Upon completion, Standard Chartered will oversee operations from London, marking one of the first such platforms offered by a global bank.

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2024-07-17 13:45