Zodia Markets, a trading firm focused on cryptocurrency, has acquired the over-the-counter trading division of Elwood Technologies with the backing of Standard Chartered’s venture arm. This move comes as Elwood Technologies decides to shift its focus to trading technology software-as-a-service (SaaS) products and services, as announced by the company.
The acquisition is expected to have a significant impact on Zodia Markets’ daily trading volumes, which currently range from $50 million to $60 million in over-the-counter (OTC) business. Usman Ahmad, CEO of Zodia Markets, expressed confidence in the deal, stating that the firm anticipates a substantial increase in daily trading volumes as a result of this acquisition. However, specific details regarding the expected customer volume from the deal were not disclosed.
Standard Chartered, which has been reportedly entering the crypto spot trading space, has investments in both Zodia Markets and Zodia Custody through its SC Ventures business. Despite this, Usman clarified that the acquisition of Elwood’s OTC business will not interfere with Standard Chartered’s own crypto trading plans. He emphasized that the transaction is designed to facilitate the growth of Zodia Markets without conflicting with Standard Chartered’s activities in the crypto trading sector.
The decision by Elwood Technologies to sell its OTC business reflects the maturation of the digital assets industry, according to Elwood CEO Chris Lawn. He highlighted that the move is not influenced by market conditions, but rather by the evolving landscape of the industry, with new players demanding sophisticated SaaS solutions tailored to institutional standards. Lawn emphasized that increased competition and merger and acquisition activities in the sector are prompting companies to reevaluate their core identities, leading Elwood to focus solely on its technology offerings.
As the cryptocurrency market transitions from a prolonged bear market, the acquisition of Elwood’s OTC business by Zodia Markets underscores the growing interest in institutional-grade trading infrastructure. With established banks backing crypto projects and custodians, the industry is witnessing a shift towards more robust trading solutions to meet the evolving needs of traditional capital markets.
In conclusion, the acquisition of Elwood’s OTC trading division by Zodia Markets signifies a strategic move to enhance trading volumes and expand market reach. The deal is expected to strengthen Zodia Markets’ position in the cryptocurrency trading sector while allowing Elwood Technologies to concentrate on its core competency in trading technology SaaS products and services. This acquisition reflects the ongoing evolution and maturation of the digital assets industry, driven by increasing demand for institutional-grade solutions and services.