Exploring the Potential Acquisition of Elwood Capital Management Ltd.
An investment bank’s crypto division, Zodia Markets Ltd., is in discussions regarding acquiring a portion of Elwood Capital Management Ltd., which is supported by billionaire hedge fund manager Alan Howard. The deal is anticipated to be finalized this month, as per a report by Bloomberg on July 9, citing sources familiar with the matter.
Strategic Move for Zodia Markets
If the acquisition goes through, it would be a strategic move for Zodia Markets, granting them licenses as a virtual asset service provider and an investment business in Jersey. It would also support their shift towards offering over-the-counter (OTC) settlement services. Previous reports from June mentioned that Standard Chartered was gearing up to launch a Bitcoin and Ethereum trading desk in London.
- Elwood Capital is connected to Elwood Technologies, established by Alan Howard in 2018.
- It secured $70 million from investors, including Goldman Sachs Group.
The Journey of Zodia Markets
Zodia Markets, a creation of Standard Chartered in 2021, emerged as a joint venture between its venture capital arm and Hong Kong’s BC Technology Group. The crypto exchange under Zodia was launched mid-2022 amid a bear market but ceased operations in early 2024 due to low demand. CEO Usman Ahmad now emphasizes providing fast, wholesale cross-border settlement services between fiat currencies and stablecoins.
The OTC settlement operations under Zodia handle daily trading volumes of $50 to $60 million, according to Ahmad.
Standard Chartered’s Positive Stance on Cryptocurrencies
In a post earlier this year, Standard Chartered expressed confidence in cryptocurrencies, especially stablecoins, seeing them as a permanent fixture in the future of finance. Geoff Kendrick, the bank’s head of digital assets research, predicted Bitcoin’s potential to reach $150,000 during 2024, even though it has been on a downtrend since hitting an all-time high in March with a 26% correction recently.
Hot Take: Navigating the Crypto Landscape
As the crypto industry continues to evolve with new collaborations and acquisitions, the landscape presents both challenges and opportunities for participants. Stay informed about the latest developments, market trends, and regulatory updates to make informed decisions in your crypto journey.
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