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

Institutional cryptocurrency trading firm Zodia Markets has officially confirmed that it has acquired the OTC subsidiary of Alan Howard-backed Elwood.

Cryptocurrency trading firm Zodia Markets has confirmed that it has acquired Elwood Capital, the over-the-counter (OTC) crypto subsidiary of Elwood Technologies, with backing from Alan Howard.

The Standard Chartered-backed firm said in a blog post that the acquisition includes an execution management system (EMS) with liquidity access tools as well as a portfolio and risk management system (PMS). Commenting on the sale, Elwood CEO Chris Lawn said the deal was a “significant new chapter for Elwood” as it “strengthened” the company’s position in the market.

“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.” Chris Lawn

Although no financial details were disclosed, the combined entity will operate under the name Zodia Markets Jersey, according to the announcement. The acquisition follows recent reports that the deal positions Zodia Markets to leverage Elwood’s licenses for its virtual asset service provider services and investment businesses in Jersey.

Founded in 2018 with initial backing from Alan Howard, Elwood Technologies has raised $70 million from investors including Goldman Sachs and Dawn Capital. As Crypto.news previously reported, Elwood witnessed a $16.9 million loss for the fiscal year ending March 2023, leading to a strategic pivot from trading to portfolio and risk management services, culminating in the decision to sell off part of its business as of the end of May.