Institutional crypto trading firm Zodia Markets has officially confirmed the acquisition of Alan Howard-backed Elwood’s OTC branch.

Crypto trading firm Zodia Markets has confirmed its acquisition of Elwood Technologies’ over-the-counter (OTC) crypto branch, known as Elwood Capital, backed by Alan Howard.

In a blog announcement, the Standard Chartered-backed firm said the acquisition includes an execution management system (EMS) with tools for accessing liquidity as well as portfolio & risk management system (PMS). Commenting on the sale, Elwood chief executive Chris Lawn said the deal marks an “important new chapter for Elwood” as it “strengthens” the company’s position on the market.

“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.” Chris Lawn

While financial details were not disclosed, the combined entity will operate under the name Zodia Markets Jersey, according to the announcement. The acquisition follows recent reports speculating on the deal, positioning Zodia Markets to leverage Elwood’s licenses for virtual asset service provider services and investment businesses in Jersey.

Founded in 2018 with initial backing from Alan Howard, Elwood Technologies raised $70 million from investors including Goldman Sachs and Dawn Capital. As Coin Insider Daily reported previously, Elwood witnessed a fiscal year loss of $16.9 million ending March 2023, prompting a strategic pivot towards portfolio and risk management services over trading, culminating in the decision to sell part of its business starting late May.