Elwood will deal with its buying and selling know-how software-as-a-service services and products.
Zodia Markets’ $50 million-$60 million a day OTC enterprise expects to “enhance every day volumes considerably,” because of the deal.
Zodia Markets, a cryptocurrency-focused buying and selling agency backed by the enterprise arm of Normal Chartered, mentioned it’s shopping for the over-the-counter buying and selling division of Elwood Applied sciences, confirming media stories the unit was on the block and sale talks had been in course of.
After offloading the enterprise, Elwood, which was championed by crypto-friendly billionaire Alan Howard, will deal with its buying and selling know-how software-as-a-service (SaaS) services and products, the corporate mentioned on Monday.
Confidence is working excessive within the institutional crypto area, with regulated bank-backed initiatives and certified custodians constructing out a base of buying and selling infrastructure to satisfy the calls for of conventional capital markets.
Zodia Markets’ OTC enterprise now handles buying and selling volumes of as a lot as $60 million a day, in response to CEO Usman Ahmad. He didn’t share particulars of how a lot buyer quantity is more likely to come Zodia’s approach from the deal, however mentioned by way of e mail that the agency expects to “enhance every day volumes considerably.” He additionally declined to share monetary phrases of the deal.
Normal Chartered, which was reported not too long ago to be getting into the crypto spot buying and selling area, is a backer (by way of the SC Ventures enterprise) of each Zodia Markets and its sister operation, Zodia Custody.
Usman mentioned the deal wouldn’t overlap with Normal Chartered’s crypto buying and selling aspirations. “This transaction is an enabler for Zodia Markets’ progress and doesn’t overlap with what Normal Chartered could or could not do instantly in buying and selling spot crypto,” he mentioned.
Crypto markets, popping out of an extended bear market, stay uneven. Elwood CEO Chris Garden mentioned the choice to promote the OTC enterprise was not a couple of bull or bear market, however as an alternative an illustration of how the digital belongings trade is maturing, with new entrants demanding institutional-grade SaaS options.
“Elevated competitors and M&A will pressure corporations to ask powerful questions as to who and what they are surely,” Garden mentioned in an e mail. “For us, the reply is we’re a know-how firm, therefore the strategic determination to focus all of our efforts on this a part of our enterprise and to promote the OTC enterprise.”
