Standard Chartered Bank subsidiary Zodia Markets Ltd. is currently in acquisition talks with Elwood Capital Management Ltd., a crypto asset company backed by billionaire hedge fund manager Alan Howard. It is reported that Zodia Markets plans to acquire a portion of Elwood Capital's shares, and the transaction is expected to be completed within this month.
Bloomberg reported on July 9 that Elwood Capital, a company that provides over-the-counter (OTC) cryptocurrency trading and settlement services, will bring strategic expansion to Zodia Markets.
The acquisition has the strong support of Alan Howard, a major influential figure in the financial world, whose involvement may add new development opportunities to Zodia Markets' development in the cryptocurrency market.
Major banks are investing in cryptocurrency
Standard Chartered Bank's cryptocurrency subsidiary Zodia Markets Ltd. is taking a strategic step by acquiring a stake in Elwood Capital Management Ltd. This will not only bring Zodia Markets a license for virtual asset service providers and investment business in Jersey, but will also facilitate its transformation to over-the-counter settlement services. In addition, Standard Chartered Bank has also taken action before. According to CryptoPotato's report in June, the bank plans to launch Bitcoin (BTC) and Ethereum (ETH) trading desks in London.
Elwood Capital, part of Elwood Technologies, was founded in 2018 by Alan Howard, who has raised $70 million from investors including Goldman Sachs Group Inc. Howard’s investment in the cryptocurrency space in January 2024 showed his confidence in the industry’s prospects, and he intends to reinvest the proceeds in his company Brevan Howard Digital.
Zodia Markets, founded in 2021, is a joint venture between Standard Chartered Bank's venture capital arm and Hong Kong's BC Technology Group. Although Zodia's cryptocurrency exchange was launched in mid-2022, the market entered a bear market and closed services in early 2024 due to lack of demand, CEO Usman Ahmad revealed to Bloomberg that the company is currently focused on leveraging its partnership with Standard Chartered Bank to provide high-speed wholesale cross-border settlement services between fiat currencies and stablecoins.
Ahmad also pointed out that the daily trading volume of its OTC settlement business has reached $50 million to $60 million, showing the company’s strong momentum and potential in the cryptocurrency services sector.
Standard Chartered Bank actively embraces cryptocurrencies
Standard Chartered Bank has a positive attitude towards the prospects of cryptocurrencies, especially in its earlier blog post, emphasizing the enduring position of stablecoins in the financial industry. The article clearly stated: "Standard Chartered Bank believes that digital assets, especially stablecoins, are an integral part of the future development of financial services and recognizes their potential."
This move further demonstrates its confidence in cryptocurrencies. Geoff Kendrick, an analyst and head of digital asset research at Standard Chartered Bank, predicted in April that Bitcoin is expected to usher in a strong upward trend in 2024 and may even reach a peak of $150,000 per coin. This prediction not only highlights Standard Chartered Bank's long-term optimism about the value of Bitcoin, but also reflects its deep understanding of the potential of the cryptocurrency market.
Although Bitcoin has experienced a certain degree of correction since reaching an all-time high in March, with prices falling 26% from their peak last week, Standard Chartered's analysis remains firm. Such short-term fluctuations are not uncommon in financial markets, and Standard Chartered's position shows its confidence in the long-term appreciation potential of cryptocurrencies. As the market develops and matures, Standard Chartered expects cryptocurrencies to continue to play an important role in the financial sector.
Conclusion:
Standard Chartered Bank has demonstrated its confidence and forward-looking layout in the cryptocurrency market through its subsidiary Zodia Markets Ltd. This strategic move not only strengthens its competitiveness in the financial services sector, but also foreshadows the important position of cryptocurrency in the future financial market.
In the face of short-term market fluctuations, Standard Chartered Bank remains optimistic about the long-term value of cryptocurrencies. As the technology matures and the market deepens, Standard Chartered Bank expects cryptocurrencies to bring new impetus for innovation and growth to the global financial ecosystem. Let us look forward to how this change will shape the future of financial services. #渣打银行 #加密货币 #场外交易 #OTC服务
