Shift

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<p>Zodia Markets, a crypto subsidiary of Standard Chartered Plc, is set to acquire part of a digital-asset business backed by billionaire hedge fund manager Alan Howard as reported by <a href="https://www.bloomberg.com/news/articles/2024-07-09/alan-howard-backed-crypto-firm-in-deal-talks-with-stanchart-s-zodia" class="ek-link">Bloomberg</a>. This strategic move will enhance Zodia Markets’ services and expand its reach in the digital asset market. </p> 
<h2 class="wp-block-heading" id="h-details-of-the-acquisition">Details of the Acquisition</h2> 
<p>Zodia Markets is finalizing an agreement to acquire Jersey-based Elwood Capital Management Ltd. Elwood Capital offers over-the-counter trading and settlement services. The deal, expected to close this month, will give Zodia Markets licenses as a virtual asset service provider and investment business in Jersey. This acquisition aligns with Standard Chartered’s push into digital assets, including plans to set up a trading desk for Bitcoin and Ether.</p> 
<h2 class="wp-block-heading" id="h-zodia-markets-strategy-shift">Zodia Markets’ Strategy Shift</h2> 
<p>Elwood Capital is part of Elwood Technologies, founded by Brevan Howard Asset Management co-founder Alan Howard in 2018. Elwood Technologies raised $70 million in 2022 from investors like Goldman Sachs Group Inc. Despite reporting a loss of $16.9 million for the fiscal year ending March 2023, the company remains a significant player in digital asset infrastructure.</p> 
<h2 class="wp-block-heading" id="h-standard-chartered-s-digital-asset-vision">Standard Chartered’s Digital Asset Vision</h2> 
<p>Standard Chartered launched Zodia Markets in 2021 as a joint venture with Hong Kong’s BC Technology Group. Despite initial challenges and low trading volumes, Zodia Markets shifted focus to high-speed, wholesale cross-border settlement services between fiat currencies and stablecoins. This strategy has led to a significant increase in OTC settlement operations, now exceeding $50-$60 million a day.</p> 
<h2 class="wp-block-heading" id="h-adgm-in-principle-approval">ADGM In-Principle Approval</h2> 
<p>Zodia Markets, in September 2023, <a href="https://www.unlock-bc.com/113465/zodia-custody-joins-metaco-network-integration/" class="ek-link">received </a>In-Principle Approval from Abu Dhabi Global Market (ADGM) to operate as a cryptocurrency broker-dealer within the UAE’s over-the-counter (OTC) market. This approval is a significant step towards enhancing their presence in the Middle East.</p> 
<h2 class="wp-block-heading" id="h-expansion-in-the-middle-east">Expansion in the Middle East</h2> 
<p>In April, Co-Founder and Head of Partnerships Nick Philpott <a href="https://zodiamarkets.com/insights/press-release/zodia-markets-cofounder-relocates-to-abu-dhabi/" class="ek-link">relocated </a>to Abu Dhabi, highlighting Zodia Markets’ commitment to the region. Philpott joins a team of senior executives already based in the UAE, emphasizing the company’s dedication to the local market and its clients.</p> 
<p>Unlock Blockchain reached out to Zodia Markets for comments on the acquisition plan but has not yet received a response.</p> 
<p>The post <a href="https://www.unlock-bc.com/125580/zodia-markets-elwood-capital-acquisition/">Zodia Markets Expands with Elwood Capital Acquisition</a> appeared first on <a href="https://www.unlock-bc.com">UNLOCK Blockchain</a>.</p>

Zodia Markets Expands with Elwood Capital Acquisition

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