Standard Chartered's crypto division, Zodia Markets, is reportedly in talks to acquire a portion of Elwood Capital Management, a firm backed by billionaire hedge fund manager Alan Howard. The deal, expected to be finalized this month, would provide Zodia with licenses as a virtual asset service provider and investment business in Jersey, supporting a shift towards over-the-counter (OTC) crypto trading and settlement services.

Elwood Capital is part of Elwood Technologies, established by Howard in 2018. It raised $70 million from investors, including Goldman Sachs Group. Zodia Markets, launched by Standard Chartered in 2021, is now focusing on leveraging its relationship with Standard Chartered to offer high-speed, wholesale cross-border settlement services between fiat currencies and stablecoins.

Standard Chartered has expressed optimism about the future of cryptocurrencies, particularly stablecoins, in the financial landscape. Despite the recent downtrend in Bitcoin's value, the bank's head of digital assets research, Geoff Kendrick, predicted a potential rise to $150,000 in 2024.