Alan Howard-backed Elwood to sell OTC business to Standard Chartered's Zodia Markets

Zodia Markets, a subsidiary of Standard Chartered, has agreed to acquire Elwood Technologies' Jersey-based digital asset over-the-counter trading business, Elwood Capital Management, for an undisclosed sum.

Following the completion of the sale, the entity will become Zodia Markets Jersey, while Elwood Technologies will continue to focus on its institutional-grade SaaS products, according to a statement on Wednesday.

"The sale of our OTC trading business supports Elwood’s strategic plan to build a world-class end-to-end EMS and PMS software platform and allows us to fully dedicate our resources to the SaaS business,” Elwood CEO Chris Lawn said.

The announcement confirms reports from last week that Zodia Markets was in talks to acquire the company, providing the Standard Chartered subsidiary virtual asset service provider licenses in the self-governing British Channel Island of Jersey, in addition to its existing UK Financial Conduct Authority and Central Bank of Ireland registrations, as well as a functioning OTC trading services business.

“This acquisition is a significant progression to create greater diversification in our service offering and footprint, enabling scale and accelerating product capability,” Zodia Markets co-founder and CEO Usman Ahmad said. “Building on our exceptional growth in the first half of the year, we are well-positioned to further capitalize on the global institutional demand for digital asset solutions.”

Elwood Technologies is backed by billionaire hedge fund manager Alan Howard, who co-founded the company in 2018. Standard Chartered’s venture capital arm co-founded Zodia Markets' digital asset trading business in 2021 with Hong Kong’s BC Technology Group.