Standard Chartered's Zodia Markets is interested in acquiring the cryptocurrency trading and settlement firm Elwood Capital.

Bloomberg reported that Zodia Markets, a cryptocurrency subsidiary of Standard Chartered Bank, is in talks to acquire digital asset trading and settlement firm Elwood Capital. This move is seen as paving the way for the potential launch of a Bitcoin and Ethereum trading platform, as revealed last month, and is one of the latest steps in expanding the company's crypto business.

Standard Chartered Bank to Launch Bitcoin and Ethereum Trading Platform: Actively Supporting Customer Demand

Standard Chartered's Zodia Markets in Talks to Acquire Crypto Settlement Firm Elwood Capital

Reports indicate that Zodia Markets, the cryptocurrency trading arm of Standard Chartered Bank, is in negotiations to acquire a stake in Elwood Capital, a digital asset trading and settlement service provider for institutions:

The discussions are expected to be finalized this month, enabling Zodia Markets to indirectly obtain the VASP license from the Jersey Financial Services Commission (JFSC) in the UK and enhance its cryptocurrency over-the-counter trading business.

Elwood Capital, founded in 2018, is part of Elwood Technologies and backed by Brevan Howard, a macro hedge fund with assets under management exceeding $20 billion, co-founded by Alan Howard.

What is Zodia Markets?

Zodia Markets, a subsidiary of Standard Chartered Bank, focuses on digital asset trading and settlement services and was jointly established in 2021 by its venture arm SC Ventures and BC Technology in Hong Kong.

What is Elwood Capital?

Elwood Capital, part of Elwood Technologies, was founded in 2018 by Alan Howard, co-founder of Brevan Howard, a macro hedge fund with assets under management exceeding $20 billion.

Prior to this, the company raised $70 million in a funding round in 2022 led by Goldman Sachs and venture capital fund Dawn Capital, as reported by TechCrunch. However, its latest financial statements as cited by Bloomberg show a loss of $16.9 million for the fiscal year ending in March 2023.

Standard Chartered Expanding Crypto Business

Just last month, Standard Chartered Bank announced plans to establish a spot trading platform for Bitcoin and Ethereum, citing demand from institutional investors:

We have been working closely with regulators to support clients in the broader digital asset ecosystem, from custody to tokenization and interoperability.

In November last year, Standard Chartered's venture arm SC Ventures also launched Libeara, a tokenized bond trading platform aimed at enabling fund managers, governments, and issuers to tokenize real-world assets or issue regulated security tokens:

Initially, we will focus on tokenizing Singapore government bond funds.

RWA | Standard Chartered Bank Launches Digital Platform Libeara to Assist Tokenization of Singapore Bond Funds

Yesterday, its cryptocurrency custody subsidiary Zodia Custody partnered with lending protocol Maple Finance to provide custody services for the collateral pledged by borrowers.