Zodia Markets reportedly in talks to acquire Alan Howard-backed crypto OTC firm

Summary of Main Points:

  • Zodia Markets in discussions with Elwood to acquire part of its crypto OTC business.
  • Standard Chartered setting up a trading desk for Bitcoin (BTC) and Ethereum (ETH).
  • Deal between Zodia Markets and Elwood expected to be finalized by August.
  • Zodia Markets to expand OTC settlement services through acquisition.
  • Elwood Technologies considering selling part of its business to focus on portfolio management.
  • Zodia offers custodian services through Zodia Custody.
  • Zodia Custody securing funding for expansion in Australia.

Zodia Markets Acquiring Elwood’s Crypto OTC Business

Zodia Markets, an institutional crypto trading firm, is currently in discussions with Elwood Technologies to acquire part of its crypto over-the-counter (OTC) business. This move aligns with Standard Chartered’s plans to establish a trading desk for Bitcoin (BTC) and Ethereum (ETH). The deal, expected to be finalized by August according to Bloomberg, will enable Zodia Markets to expand its OTC settlement services and gain licenses for virtual asset service provider services and investment businesses in Jersey.

Elwood Technologies Considering Business Restructuring

Founded by Alan Howard in 2018, Elwood Technologies is contemplating selling part of its business to focus more on portfolio management and risk management services rather than trading. The company raised $70 million from investors like Goldman Sachs and Dawn Capital but reported a loss of $16.9 million for the fiscal year ending March 2023. By re-evaluating its roadmap, Elwood Technologies aims to realign its business strategy while Zodia Markets moves towards acquiring its crypto OTC business.

Zodia Custody Securing Funding for Expansion

In addition to its trading platform, Zodia offers custodian services through Zodia Custody. In late June, Zodia Custody received funding from NAB Ventures, the venture capital arm of National Australia Bank (NAB). This funding will support Zodia Custody’s efforts to expand in Australia, particularly in onboarding local digital asset exchanges amidst anticipated regulatory changes by 2025, positioning the company for growth and innovation in the cryptocurrency market.

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