According to PANews, Standard Chartered Bank's cryptocurrency subsidiary Zodia Markets Ltd. is negotiating a partial equity acquisition with Elwood Capital Management Ltd., a digital asset business backed by billionaire hedge fund manager Alan Howard. People familiar with the matter said Zodia Markets is about to reach an agreement to acquire Jersey-based Elwood Capital, which provides over-the-counter trading and settlement services, and the transaction is expected to be completed this month.
The talks come as Standard Chartered Bank furthers its foray into the digital asset space, following news in June that it plans to set up a Bitcoin and Ethereum trading desk. The acquisition of Elwood Capital will enable Zodia Markets to obtain Jersey virtual asset service provider and investment business licenses, supporting the company to focus more on over-the-counter settlement services.
Elwood Capital is part of Elwood Technologies, a company Brevan Howard Asset Management co-founder founded in 2018. Elwood Technologies raised $70 million from investors including Goldman Sachs Group Inc. and Dawn Capital in 2022. The company reported a loss of $16.9 million for the year ended March 2023, according to its latest financial statements.
