Elwood sells crypto OTC branch to Standard Chartered-backed Zodia Markets

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As a seasoned researcher with extensive experience in the crypto market, I have closely followed the developments between Zodia Markets and Elwood Technologies with great interest. The confirmation of Zodia Markets’ acquisition of Elwood Capital, Elwood Technologies’ OTC crypto branch, comes as no surprise to me given recent industry rumors.

Zodia Markets, a prominent institutional crypto trading firm, has announced the completion of the purchase of Alan Howard’s Over-the-Counter (OTC) division within Elwood.

Zodia Markets has announced the completion of its purchase of Elwood Technologies’ over-the-counter (OTC) cryptocurrency division, Elwood Capital, which is financed by Alan Howard.

In a recent blog post, Elwood, which is supported by Standard Chartered, revealed that the acquisition comprises an Execution Management System (EMS) and a Portfolio & Risk Management System (PMS). Elwood’s CEO, Chris Lawn, expressed his excitement about the deal, stating that it signifies a “significant milestone” for Elwood as it “enhances” the company’s presence in the market.

The proceeds from selling our Over-the-Counter (OTC) trading business align with Elwood’s broader objective of creating a top-tier, end-to-end Electronic Market System (EMS) and Portfolio Management System (PMS) software suite. This transaction enables us to entirely focus our efforts on expanding our Software-as-a-Service (SaaS) business.

The announcement revealed that the two companies will join forces as Zodia Markets Jersey, without sharing specific financial information. This deal comes after rumors suggesting it was imminent, allowing Zodia Markets to utilize Elwood’s licenses for virtual asset service provision and investment businesses in Jersey.

Established in 2018 and initially funded by Alan Howard, Elwood Technologies garnered $70 million in investments from prominent firms such as Goldman Sachs and Dawn Capital. Previously reported by crypto.news, the company experienced a fiscal year loss of approximately $16.9 million during the period ending March 2023. As a result, Elwood shifted its focus towards providing portfolio and risk management services rather than trading activities. This transition led to the decision to sell a portion of its business, which commenced in late May.

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2024-07-17 15:10