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Elwood Technologies ("Elwood"), a leading provider of digital asset execution and portfolio management software, and Zodia Markets, a UK-headquartered digital asset trading business backed by Standard Chartered, have announced that Zodia Markets has agreed to acquire Elwood Capital Management Ltd ("ECML"), Elwood's Digital Asset OTC trading business based in Jersey and regulated by the Jersey Financial Services Commission.
Elwood, known for its digital asset execution and portfolio management software, will now concentrate on enhancing its institutional-grade products. These include an Execution Management System (EMS) with advanced liquidity access tools and a Portfolio & Risk Management System (PMS) with improved portfolio and risk capabilities.
ECML, based in Jersey and regulated by the Jersey Financial Services Commission, has been a key player in providing liquidity solutions to a diverse global clientele. Its acquisition by Zodia Markets, which operates businesses registered with the UK's FCA, Central Bank of Ireland, and approved in principle in Abu Dhabi Global Market, is seen as a strategic move to expand Zodia's regulated presence and enhance its services to institutional clients worldwide.
Chris Lawn, CEO of Elwood, commented on the transaction: "This sale marks an important new chapter for Elwood and strengthens our position as a leading provider of execution and portfolio management software for global institutions that trade and manage digital assets. The sale of our OTC trading business supports Elwood's strategic plan to build a world-class end-to-end EMS and PMS software platform and allows us to fully dedicate our resources to the SaaS business. In line with our vision, Elwood has been investing heavily in our software platform and we recently completed the build-out and integration of our new PMS with advanced capabilities."
“We are confident that our strategic partner Zodia Markets will continue to provide exceptional service to OTC clients and we will be working closely with them to ensure a smooth transition.”
For Zodia Markets, this acquisition represents a significant step in its expansion strategy. Following the transaction, the acquired entity will be renamed Zodia Markets Jersey Ltd.
Usman Ahmad, Co-Founder and CEO of Zodia Markets, also commented: “This acquisition is a significant progression to create greater diversification in our service offering and footprint, enabling scale and accelerating product capability. Building on our exceptional growth in the first half of the year, we are well-positioned to further capitalise on the global institutional demand for digital asset solutions.”
Usman continued, "Acquiring a successful, established business with a similar regulatory-first mindset allows us to extend our offering to the clients we will welcome and provide our existing clients with a broader suite of capabilities and value. Our commitment to driving sustained growth remains paramount, as we continue to innovate at the forefront of the digital asset sector and be the go-to trading partner for institutions."
