Zodia Markets, the institutional crypto trading firm backed by Standard Chartered, has officially announced the acquisition of Elwood Capital, the over-the-counter (OTC) crypto trading offshoot of Elwood Technologies, backed by billionaire investor Alan Howard. This acquisition has the potential to change the balance of power in the cryptocurrency trading world.

According to the information in Zodia Markets’ blog announcement, the acquisition includes not only Elwood’s OTC trading branch, but also an order management system (EMS) and portfolio & risk management system (PMS), which provide tools to access liquidity. This shows that Zodia Markets has incorporated Elwood’s infrastructure and technology.

In his statement on the subject, Elwood CEO Chris Lawn stated that the agreement “opens an important new page” for Elwood and strengthens the company’s position in the market. Stating that the sale supports Elwood’s goals in the software field, Lawn says, “The sale of our OTC trading company supports Elwood’s strategic plan to create a world-class end-to-end EMS and PMS software platform and allows us to fully devote our resources to the SaaS business.”

Financial details of the acquisition have not yet been disclosed. However, it was announced that the merged company will operate under the name Zodia Markets Jersey. This means Zodia Markets can use Elwood’s virtual asset service provider services and investment business licenses in Jersey. This acquisition could enable Zodia Markets to offer a wider range of services and strengthen its position in the cryptocurrency market.

This acquisition news also confirmed the previous speculations about the sale of Elwood. Elwood Technologies was founded in 2018 with the initial investment of Alan Howard. The company, which has the support of important investors such as Goldman Sachs and Dawn Capital, reported a loss of $ 16.9 million in the fiscal year ending in March 2023. This financial loss led to a change in Elwood’s strategy. The company decided to focus on portfolio and risk management services rather than trading activities. As part of this strategic transformation, the decision was made to sell the OTC trading branch at the end of May.

Zodia Markets’ acquisition of Elwood’s OTC branch can be considered a sign of consolidation in the cryptocurrency market. This purchase also shows that institutional investors’ interest in the cryptocurrency market is increasing and investments in this field are diversifying. Zodia Markets can take a stronger position in the cryptocurrency market with Elwood’s technology and licenses. This could lead to significant developments for both investors and the general functioning of the cryptocurrency market.

In short, Zodia Markets’ acquisition of Elwood’s OTC branch is an important development that resonates in the cryptocurrency market. Time will tell the long-term effects of this acquisition and the future of the cryptocurrency market.