Fundraising Reaches $18.25 Million at Zodia Markets
Zodia Markets, a digital asset platform focused on stablecoin-enabled wholesale trading and cross-border payments, recently secured $18.25 million in a Series A funding round. This capital raise aims to accelerate the firm’s global expansion, enhance stablecoin infrastructure, and develop new stablecoin payment solutions and multi-asset trading products for institutional clients.
Key details about Zodia Markets and its latest developments include:
- Background and Backing: Founded in 2021 by SC Ventures (Standard Chartered’s innovation arm) and Hong Kong crypto firm OSL Group, Zodia Markets targets institutional crypto trading and brokerage services with a strong emphasis on regulatory compliance and fiat access. Standard Chartered retains a significant stake (around 84%) in the company.
- Strategic Focus: The platform is non-custodial, allowing users to retain control of their assets, and it aims to bridge traditional finance (TradFi) and decentralized finance (DeFi) ecosystems, facilitating real-time wholesale stablecoin settlement across borders.
- Market Positioning: Zodia competes with institutional crypto platforms like Coinbase Institutional and Fidelity Digital Assets but differentiates through its focus on stablecoins such as USDC and on regulatory clarity.
- Use of Funds: The raised capital will fuel geographic expansion and strengthen the firm’s stablecoin orchestration solutions, positioning Zodia as a key player in enabling same-day FX settlements in Asia and worldwide, addressing challenges arising from traditional T+1 settlement timings.
- Partnerships and Investors: The funding round was led by Pharsalus Capital and included prominent participants such as Circle Ventures (linked to the USDC stablecoin), Tokenbay Capital, XVC Tech, and others.
- Transaction Scale: By mid-2024, Zodia’s over-the-counter stablecoin FX settlement was transacting $50-$60 million daily, indicating growing institutional adoption.
- Vision: CEO Usman Ahmad emphasizes reengineering traditional foreign exchange through stablecoin real-time settlement, marking the “next era of finance” leveraging blockchain technology.
Overall, Zodia Markets is actively strengthening its position as a regulated, institution-focused platform that harnesses stablecoins for efficient, real-time, cross-border trading and payments, backed by significant traditional financial players and venture capital. The funding round is significant as it reflects the conviction of globally respected investors in the company's strategy, vision, and execution.
The Series A funding round secured by Zodia Markets, a digital asset platform, aims to use technology to enhance stablecoin infrastructure and develop new payment solutions, aligning with its focus on strengthening stablecoin-enabled wholesale trading and cross-border payments. This investment, led by Pharsalus Capital, indicates the global finance community's confidence in Zodia's strategic use of digital assets and blockchain technology for reshaping traditional finance.
