Standard Chartered Crypto Arm Eyes Buying Billionaire Crypto OTC Firm: Report

Zodia Markets, the crypto subsidiary of British multinational bank Standard Chartered, is reportedly in talks to buy Ellwood Capital Management, a crypto firm backed by billionaire hedge fund manager Alan Howard.

The deal between Zodia Markets and Ellwood Capital — which offers over-the-counter crypto trading and settlement services — is expected to close by the end of this month, Bloomberg reported on July 9, citing people familiar with the matter.

Zodia Markets' acquisition of Ellwood Capital will position the firm as a virtual asset provider and investment business in Jersey – a British crown dependency on an island off the coast of northern France – a person familiar with the deal said.

This is said to be Zodia's ongoing effort to focus on OTC settlement services.

Zodia Markets Launched in 2021 by Standard Chartered, the crypto exchange is a collaboration between the bank's venture capital subsidiary and Hong Kong's BC Technology Group.

Usman Ahmed, the company's CEO, told Bloomberg in June that it was due to high demand for crypto products that it shut down the service earlier this year.

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Howard, the billionaire hedge fund manager of Brevan Howard Asset Management, put many of his personal holdings in crypto companies up for sale in February, with the intention of reinvesting the proceeds into Brevan Howard Digital, the hedge fund's crypto division.

Standard Chartered has been trying to expand its footprint in the crypto industry. On June 21, it was reported that the bank may want to open its own trading desk for Bitcoin (BTC) and Ether (ETH).

If launched, this Standard Chartered will be one of the first global banking institutions involved in the trading of cryptocurrencies.

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