According to PANews, Zodia Markets Ltd., a subsidiary of Standard Chartered Bank, is reportedly in negotiations to acquire a stake in a digital asset business supported by billionaire and hedge fund manager Alan Howard. Insiders reveal that Zodia Markets is close to finalizing a deal to acquire Elwood Capital Management Ltd., a company based in Jersey Island that provides over-the-counter trading and settlement services. The deal is expected to be completed this month.
The negotiations come at a time when Standard Chartered Bank is making further inroads into the digital asset sector. In June, it was reported that the bank planned to establish Bitcoin and Ethereum trading desks. An insider stated that the acquisition of Elwood Capital would enable Zodia Markets to obtain a virtual asset service provider and investment business license in Jersey Island, thereby allowing the company to focus more on over-the-counter settlement services.
Elwood Capital is part of Elwood Technologies, a company co-founded in 2018 by the co-founder of Brevan Howard Asset Management. In 2022, Elwood Technologies raised $70 million from investors including Goldman Sachs Group and Dawn Capital. According to its latest financial statement, the company reported a loss of $16.9 million for the fiscal year ending in March 2023.