Zodia Markets Acquires Elwood Technologies’ OTC Trading Division

Zodia Markets, a cryptocurrency-focused trading firm backed by the venture arm of Standard Chartered, has announced the acquisition of the over-the-counter trading division of Elwood Technologies. This move confirms recent media reports about the unit being up for sale and undergoing sale discussions.

Following the sale of the OTC business, Elwood Technologies, supported by crypto-friendly billionaire Alan Howard, will shift its focus towards its trading technology software-as-a-service (SaaS) products and services, the company revealed on Monday.

Confidence is on the rise within the institutional crypto space, with regulated bank-backed projects and qualified custodians expanding trading infrastructure to meet the requirements of traditional capital markets.

Zodia Markets’ OTC business currently manages trading volumes of up to $60 million per day, as stated by CEO Usman Ahmad. While specific details regarding the volume that will transition to Zodia Markets through this deal were not disclosed, Ahmad mentioned that the firm anticipates a significant increase in daily volumes as a result of the acquisition.

Standard Chartered, which was recently rumored to be entering the crypto spot trading sector, supports both Zodia Markets and its sister company, Zodia Custody, through the SC Ventures initiative.

Regarding any potential overlap with Standard Chartered’s crypto trading plans, Usman clarified that the deal serves as a growth catalyst for Zodia Markets and does not conflict with Standard Chartered’s direct involvement in spot crypto trading.

Elwood CEO Chris Lawn emphasized that the decision to sell the OTC business was not influenced by market conditions but rather reflects the maturation of the digital assets industry. New players are now seeking institutional-grade SaaS solutions, prompting increased competition and M&A activities.

Lawn commented, “Increased competition and M&A will force companies to ask tough questions as to who and what they really are. For us, the answer is we are a technology company, hence the strategic decision to focus all of our efforts on this part of our business and to sell the OTC business.”