Investment bank Zodia Markets Ltd. is discussing buying part of Elwood Capital Management Ltd. The firm is backed by billionaire hedge fund manager Alan Howard, and the deal is expected to close later this month. Elwood Capital offers over-the-counter (OTC) crypto trading and settlement services. 🏦💰
For Zodia Markets, the move will be strategic as it will provide it with licenses as a virtual asset service provider and investment business in Jersey and support a shift towards OTC settlement services. Zodia's crypto exchange launched in mid-2022 when the industry entered a bear market and discontinued its services in early 2024.
The company's main goal is now to "deliver fast, wholesale, cross-border settlement services between fiat currencies and stablecoins, leveraging its relationship with Standard Chartered," he said. OTC settlement operations now handle $50 to $60 million in daily trading volume.
Standard Chartered stated in a blog post earlier this year that cryptocurrencies, particularly stablecoins, are a permanent part of the future of finance. However, the asset has been in a downward trend since its all-time high in March.