Zodia Markets, a cryptocurrency-focused trading firm supported by the venture arm of Standard Chartered, has announced the acquisition of Elwood Technologies’ over-the-counter (OTC) trading division. This move comes following reports that the unit was up for sale and discussions were underway for its acquisition.
After divesting the OTC business, Elwood Technologies, backed by crypto-friendly billionaire Alan Howard, will shift its focus towards enhancing its trading technology Software-as-a-Service (SaaS) products and services, as stated on Monday.
The institutional crypto space is currently witnessing a surge in confidence, with regulated bank-backed projects and qualified custodians expanding trading infrastructure to cater to the requirements of traditional capital markets.
Zodia Markets’ OTC business now manages trading volumes of up to $60 million daily, according to CEO Usman Ahmad. While specific details of the customer volume expected to transition to Zodia were not disclosed, Ahmad mentioned that the firm anticipates a significant increase in daily trading volumes post-acquisition. Financial terms of the deal were not disclosed.
Standard Chartered, recently rumored to be entering the crypto spot trading arena, supports both Zodia Markets and its sister entity, Zodia Custody, through its SC Ventures arm.
Usman clarified that the acquisition would not conflict with Standard Chartered’s crypto trading plans. He emphasized that the transaction is aimed at facilitating Zodia Markets’ growth and does not intersect with the bank’s potential involvement in spot crypto trading.
Despite the volatility in the crypto markets, following a prolonged bear market, Elwood CEO Chris Lawn emphasized that the decision to sell the OTC business was not influenced by market conditions. Instead, it underscores the maturation of the digital assets industry, with new market participants demanding sophisticated institutional-grade SaaS solutions.
Lawn commented, “Increased competition and mergers and acquisitions will compel companies to reevaluate their core identity. For us, we identify ourselves as a technology company, hence the strategic choice to concentrate all efforts on our technology business and sell the OTC segment.”