PANews reported on July 9 that according to Bloomberg, Standard Chartered Bank's cryptocurrency subsidiary Zodia Markets Ltd. is negotiating to acquire a portion of the digital asset business supported by billionaire hedge fund manager Alan Howard, according to people familiar with the matter. People familiar with the matter said Zodia Markets is about to reach an agreement to acquire Jersey-based Elwood Capital Management Ltd., 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. A person familiar with the matter said that the acquisition of Elwood Capital will enable Zodia Markets to obtain Jersey virtual asset service provider and investment business licenses, thereby supporting the company to focus more on over-the-counter settlement services.
Elwood Capital is part of Elwood Technologies, which 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.