Coinspeaker Standard Chartered-Backed Zodia Markets to Acquire Elwood Technologies’ OTC Trading Desk
Zodia Markets, a digital asset trading firm backed by Standard Chartered’s SC Ventures business, has said it will purchase the over-the-counter trading arm of digital asset analysis and management software provider Elwood Technologies. Zodia Markets is purchasing Elwood Capital Management Ltd (ECML) for an undisclosed amount.
Elwood Giving Up ECML to Zodia For Better Software Focus
According to a press release, Elwood is selling ECML to Zodia Markets to focus on its institutional-grade Software as a Service (SaaS) products and services. These products include a Portfolio & Risk Management System (PMS) and an Execution Management System (EMS). While the EMS offers clients better access to liquidity, the PMS provides advanced portfolio management with risk capabilities.
Elwood CEO Chris Lawn says the sale is a new chapter for the company as it solidifies its contribution to global execution and portfolio management for crypto trading institutions. Lawn said:
“The sale of our OTC trading business supports Elwood’s strategic plan to build a world-class end-to-end EMS and PMS software platform and allows us to fully dedicate our resources to the SaaS business. In line with our vision, Elwood has been investing heavily in our software platform and we recently completed the build-out and integration of our new PMS with advanced capabilities.”
Lawn also expressed Elwood’s confidence in Zodia Markets, adding that both firms will work closely to guarantee a smooth transition. After the sale, the OTC trading arm will be rebranded as Zodia Markets Jersey Ltd.
In an email to CoinDesk, Lawn expanded on the reasons behind the sale. The Elwood CEO said that as the crypto industry matures, increased competition, as well as mergers and acquisitions, will force companies to make difficult decisions. He noted that for Elwood, the strategic decision is to focus on its technology services as a core, which means giving up its OTC business.
Zodia to Diversify and Deepen Standard Chartered’s Crypto Foray
For Zodia, the plan is to diversify its services. According to CEO and co-founder Usman Ahmad, acquiring ECML will help with diversification, and also scale the company’s product capability. Usman said Zodia Markets is ready to offer clients “a broader suite of capabilities and value”, while driving sustained growth and innovation in the digital asset sector. Zodia Markets’ OTC arm currently handles trading volumes of up to $60 million daily, according to Usman. The CEO expects these numbers to increase significantly.
The development confirms recent news that Zodia Markets and Elwood were in talks for a possible sale. According to a Bloomberg report last week, people familiar with the private negotiations said both companies were nearing an agreement.
Standard Chartered has been making careful moves to deepen its involvement with crypto. Last month, Coinspeaker reported that the global financial services giant is working on a trading desk for Bitcoin (BTC) and Ether (ETH) services. When launched, Standard Chartered will operate the platform from London. The platform will be one of the first spot cryptocurrency trading services from a global financial bank.
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Standard Chartered-Backed Zodia Markets to Acquire Elwood Technologies’ OTC Trading Desk