Standard Chartered Bank subsidiary enters cryptocurrency market to expand its over-the-counter (OTC) services

Zodia Markets Ltd., a subsidiary of Standard Chartered Bank, is currently in acquisition talks with Elwood Capital Management Ltd., a crypto asset firm backed by billionaire hedge fund manager Alan Howard. It is reported that Zodia Markets plans to acquire a stake in Elwood Capital, a deal expected to close this month.

Bloomberg reported on July 9 that Elwood Capital, as a company that provides over-the-counter (OTC) cryptocurrency trading and settlement services, will bring strategic expansion to Zodia Markets.

The acquisition is strongly supported by Alan Howard, an influential figure in the financial world, whose participation may add new development opportunities to Zodia Markets’ development in the cryptocurrency market.

Layout of large banksCryptocurrency field

Standard Chartered Bank’s cryptocurrency subsidiary Zodia Markets Ltd. is taking a strategic step by acquiring a stake in Elwood Capital Management Ltd. This will not only provide Zodia Markets brings virtual asset service provider and investment business licenses to Jersey and will also facilitate its transition to over-the-counter settlement services. In addition, Standard Chartered Bank has also made previous moves. According to a report by CryptoPotato in June, the bank plans to launch Bitcoin (BTC) and Ethereum (ETH) trading desks in London.

Elwood Capital, as Elwood Technologies, which was founded in 2018 by Alan Howard, has raised $70 million from investors including Goldman Sachs Group Inc. Howard’s investment in the cryptocurrency space in January 2024 demonstrated his confidence in the industry’s prospects and his intention to reinvest the proceeds in his company, Brevan Howard Digital.

Zodia Markets, established in 2021, is the result of a joint venture between the venture capital arm of Standard Chartered Bank and Hong Kong BC Technology Group. Although Zodia's cryptocurrency exchange launched in mid-2022 as the market entered a bear market and shut down services in early 2024 due to lack of demand, CEO Usman Ahmad revealed to Bloomberg that the company is currently focused on leveraging its partnership with Standard Chartered Bank , providing high-speed wholesale cross-border settlement services between fiat currencies and stablecoins.

Ahmad also pointed out that the daily trading volume of its OTC settlement business has reached $50 million to $60 million, showing the company’s strong momentum and potential in the field of cryptocurrency services.

Standard Chartered Bank actively embraces cryptocurrency

Standard Chartered is positive about the prospects for cryptocurrencies, specifically highlighting the enduring role of stablecoins in the financial industry in its earlier blog post. The article clearly states: “Standard Chartered Bank believes that digital assets, especially stablecoins, are an integral part of the future development of financial services and recognizes their potential.”

In a move that further demonstrates its confidence in the cryptocurrency, Geoff Kendrick, an analyst and head of digital asset research at Standard Chartered Bank, predicted in April that Bitcoin is expected to see a strong upward trend in 2024 and may even reach a peak of $150,000 per coin. . This prediction not only highlights Standard Chartered’s long-term optimism about the value of Bitcoin, but also reflects its deep understanding of the potential of the cryptocurrency market.

Although Bitcoin has experienced a degree of correction since reaching an all-time high in March, with prices falling 26% from its peak last week, Standard Chartered's analysis remains firm. Such short-term fluctuations are not uncommon in financial markets, and Standard Chartered’s stance demonstrates its confidence in the long-term potential of cryptocurrencies to appreciate. As the market develops and matures, Standard Chartered expects cryptocurrencies to continue to play an important role in the financial sector.

Conclusion:

Standard Chartered Bank has demonstrated its confidence and forward-looking layout in the cryptocurrency market through the acquisition of its subsidiary Zodia Markets Ltd. This strategic move not only strengthens its competitiveness in the financial services field, but also heralds the important position of cryptocurrency in the future financial market.

In the face of short-term volatility in the market, Standard Chartered has maintained its optimism about the long-term value of cryptocurrencies. As the technology matures and the market deepens, Standard Chartered Bank expects that cryptocurrencies will bring new impetus for innovation and growth to the global financial ecosystem. Let’s look forward to seeing how this transformation shapes the future of financial services.

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