Zodia Markets, an institutional crypto trading firm, has officially announced the acquisition of Elwood’s OTC branch, known as Elwood Capital. This move, backed by Alan Howard, marks a significant development in the crypto trading industry. The acquisition includes an execution management system (EMS) and a portfolio & risk management system (PMS), providing Zodia Markets with enhanced tools for accessing liquidity and managing portfolios.
Elwood CEO, Chris Lawn, expressed excitement about the sale, stating that it signifies a new chapter for Elwood and strengthens the company’s position in the market. The decision to sell the OTC trading business aligns with Elwood’s strategic plan to focus on developing a world-class EMS and PMS software platform, allowing them to concentrate resources on their SaaS business.
Although financial details of the acquisition were not disclosed, the combined entity will operate as Zodia Markets Jersey. This acquisition comes after speculation about the deal and positions Zodia Markets to leverage Elwood’s licenses for virtual asset service provider services and investment businesses in Jersey. Elwood Technologies, founded in 2018 with initial backing from Alan Howard, raised $70 million from investors such as Goldman Sachs and Dawn Capital. Despite experiencing a fiscal year loss of $16.9 million ending in March 2023, Elwood’s strategic pivot towards portfolio and risk management services led to the decision to sell part of its business in late May.
The acquisition of Elwood’s OTC branch by Zodia Markets highlights the competitive nature of the crypto trading industry and the importance of strategic partnerships and acquisitions in staying ahead in the market. With the integration of Elwood’s tools and licenses, Zodia Markets is poised to strengthen its position and expand its offerings to clients. This acquisition also underscores the evolving landscape of crypto trading, where companies are adapting their business models to meet the changing needs of investors and traders.
Overall, the acquisition of Elwood’s OTC branch by Zodia Markets reflects the dynamic nature of the crypto industry and the ongoing efforts of firms to innovate and provide cutting-edge solutions to their clients. As the market continues to evolve, we can expect more strategic moves and collaborations among companies to drive growth and success in the crypto trading sector.