Zodia Markets, a cryptocurrency trading entity supported by Standard Chartered’s venture arm, has announced the acquisition of the over-the-counter (OTC) trading division of Elwood Technologies. This confirmation follows media speculations regarding the unit’s availability and ongoing sale negotiations.

Post-divestiture, Elwood, under the stewardship of crypto-enthusiast billionaire Alan Howard, will pivot its focus to its trading technology software-as-a-service (SaaS) products and services, as declared on Monday.

Confidence is burgeoning within the institutional crypto sphere, with regulated bank-backed initiatives and certified custodians fortifying a foundation of trading infrastructure to cater to the requisites of traditional capital markets.

Zodia Markets’ OTC business currently handles trading volumes of up to $60 million daily, according to CEO Usman Ahmad. Although he refrained from disclosing the expected customer volume influx from the deal, he expressed via email that the firm anticipates a “significant increase in daily volumes.” Financial terms of the agreement remain undisclosed.

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Standard Chartered, which has been recently reported to be venturing into the crypto spot trading domain, backs both Zodia Markets and its sister enterprise, Zodia Custody, through its SC Ventures arm. Ahmad emphasized that this transaction will propel Zodia Markets’ growth and does not intersect with Standard Chartered’s potential direct crypto trading activities.

“The crypto markets, emerging from an extended bear phase, remain volatile,” noted Elwood CEO Chris Lawn. He clarified that the decision to sell the OTC business was not influenced by market conditions but rather reflected the maturation of the digital assets sector, with new entrants necessitating institutional-grade SaaS solutions.

“Increased competition and mergers & acquisitions will compel companies to introspect on their core identity and purpose,” Lawn elaborated in an email. “For us, the resolution is clear: we are a technology company, thus the strategic choice to concentrate all our efforts on this aspect of our business and divest the OTC division.”