Standard Chartered-backed Zodia Markets in talks to acquire Alan Howard-linked investment company: report

Quick Take

  • Standard Chartered subsidiary Zodia Markets is in talks to acquire Elwood Capital, an investment firm backed by billionaire hedge fund manager Alan Howard.
  • The deal, expected to close this month, will grant Zodia licenses in the island nation of Jersey.

Zodia Markets, a subsidiary of Standard Chartered, is in acquisition talks with Jersey-based over-the-counter digital asset trading and settlement services business Elwood Capital Management, according to Bloomberg. The deal, which would represent Standard Chartered’s latest foray into crypto, is reportedly expected to close this month.

Standard Chartered, the U.K.-based multinational bank, announced last month it is building a spot trading desk for bitcoin and ether as part of its foreign exchange business, citing demand from institutional investors. The firm also launched a blockchain-powered bond trading platform called Libeara.

Acquiring Elwood Capital would give Zodia Markets virtual asset service provider licenses in the self-governing British island nation of Jersey as well as a functioning OTC trading services business. Elwood is backed by billionaire hedge fund manager Alan Howard, who co-founded Elwood Technologies in 2018.

Elwood Technologies raised $70 million from investors including Goldman Sachs and Dawn Capital in 2022. It operated at a loss of $16.9 million in the previous fiscal year, Bloomberg reported.

Standard Chartered’s venture capital arm co-founded Zodia Markets in 2021 with Hong Kong’s BC Technology Group. It launched a crypto exchange in 2022 that was shuttered earlier this year.

On Tuesday, sister firm Zodia Custody — backed by the likes of SBI Holdings, Northern Trust, and National Australia Bank — announced a partnership with decentralized lending startup Maple Finance. This follows an earlier deal with 21Shares to provide custody services for physically backed crypto exchange-traded products (ETPs) in the European market.


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About Author

Daniel Kuhn is a Senior Journalist and Editor at The Block, where he covers the crypto industry with a particular focus on tech. He previously served as deputy managing editor of opinion/features at CoinDesk. He first appeared in print in Financial Planning, a trade publication magazine. Before journalism, he studied philosophy as an undergrad, English literature in graduate school and business and economic reporting at an NYU professional program. You can connect with him on Twitter and Telegram @danielgkuhn or find him on Urbit as ~dorrys-lonreb.

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