Bloomberg reported that Zodia Markets, a cryptocurrency subsidiary of Standard Chartered Bank, is negotiating to acquire digital asset trading and settlement company Elwood Capital. This move is seen as paving the way for the launch of a Bitcoin and Ethereum trading platform that was revealed last month. , is also one of the company’s latest moves to expand its crypto business.

(Standard Chartered Bank plans to launch Bitcoin and Ethereum trading platforms: actively support customer needs)

Standard Chartered’s Zodia Markets intends to acquire crypto settlement company Elwood Capital

The report pointed out that Zodia Markets, the encryption trading arm of Standard Chartered Bank, is negotiating with Elwood Capital, a digital asset trading and settlement services company for institutions, to acquire a partial stake:

Relevant negotiations are expected to be completed this month, which will allow Zodia Markets to indirectly obtain a virtual asset service provider license (VASP) from the British Isles of Jersey (JFSC) and provide a more complete cryptocurrency OTC trading business.

It is reported that Elwood Capital was founded in 2018 by Brevan Howard, a macro hedge fund with more than US$20 billion in assets under management, and its co-founder Alan Howard.

What are Zodia Markets?

Zodia Markets, a subsidiary of Standard Chartered Bank, focuses on digital asset trading and settlement services. It was co-founded in 2021 by its venture capital arm SC Ventures and Hong Kong's BC Technology.

What is Elwood Capital?

Elwood Capital, part of Elwood Technologies, was founded in 2018 by Brevan Howard, co-founder of Alan Howard, a macro hedge fund with over $20 billion in assets under management.

The company previously raised $70 million in a funding round co-led by Goldman Sachs and venture capital fund Dawn Capital in 2022.

However, the company lost $16.9 million in the year ended March 2023, according to its latest financial statements cited by Bloomberg.

Standard Chartered actively expands crypto business

Just last month, Standard Chartered Bank claimed that it would establish a spot trading platform for Bitcoin and Ethereum due to the relevant needs of institutional investors:

We have been working closely with regulators to support clients across the broader digital asset ecosystem, from custody and tokenization to operability.

In November last year, SC Ventures, the venture capital arm of Standard Chartered, also launched Libeara, a tokenized bond trading platform, aiming to enable fund managers, governments and issuers to put real-world assets (RWA) on the chain or issue regulated security tokens. :

First, we will focus on the tokenization of Singapore Government Bond Funds.

(RWA｜Standard Chartered Bank launches digital platform Libeara to assist the tokenization of Singapore bond funds)

Yesterday, its crypto custody company Zodia Custody also reached a cooperation with the lending agreement Maple Finance to provide custody services for its pledged collateral.

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