Paxos Acquires Fordefi to Fuel Institutional Crypto's Secure Custody Revolution

Paxos, a leading regulated blockchain infrastructure provider, has acquired Fordefi for over $100 million. The acquisition, announced on November 25, 2025, aims to strengthen Paxos's position in the growing institutional crypto market by integrating Fordefi's multi-party computation (MPC) wallet architecture and decentralized finance (DeFi) integrations into its existing custody infrastructure. Fordefi, founded in 2021, operates a platform trusted by nearly 300 global institutions. The move underscores the accelerating demand for secure custody solutions as enterprises increasingly engage with on-chain financial systems.

Paxos CEO Charles Cascarilla emphasized that the acquisition aligns with the company's mission to provide enterprises with a "neutral, enterprise-grade platform" for navigating the digital asset economy. By combining Fordefi's MPC-based wallet technology-which splits transaction approvals across multiple parties to reduce private key risks-with Paxos's decade-long expertise in regulated infrastructure, the firm aims to offer a unified solution for issuing stablecoins, tokenizing assets, and executing complex payment flows. Fordefi CEO Josh Schwartz noted that the partnership would enable the firm to "bring our technology to an even broader audience" while maintaining its focus on security and innovation.

The deal marks Paxos's second major acquisition in 2025, following its purchase of Membrane Finance. This expansion reflects broader industry trends, as institutional demand for DeFi tools and tokenized assets grows despite persistent risks like hacks and regulatory uncertainty. Paxos, which issues stablecoins such as PayPal USD (PYUSD) and Global Dollar (USDG), has positioned itself as a bridge between traditional finance and blockchain technology, serving clients like PayPal, Mastercard, and Nubank. The integration of Fordefi's technology is expected to enhance Paxos's ability to meet these clients' evolving needs, particularly in secure custody and DeFi connectivity .

Financial details of the transaction were not disclosed in the official announcement, though a Paxos spokesperson confirmed the valuation exceeded $100 million. Fordefi will continue operating independently during the transition period, with its technology gradually incorporated into Paxos's infrastructure. The startup had previously raised $28 million across two funding rounds, including a $10 million extension led by Electric Capital in 2024, in which Paxos participated as an investor.

The acquisition also highlights the increasing strategic importance of wallet infrastructure in the crypto ecosystem. As stablecoins and tokenized assets gain mainstream adoption, financial firms are prioritizing secure, scalable solutions to manage digital assets. This trend is evident in recent moves by companies like Stripe and Ripple, which have also pursued wallet-related acquisitions to bolster their offerings. With Fordefi's expertise in institutional-grade MPC wallets, Paxos is well-positioned to capitalize on this demand while maintaining regulatory compliance across jurisdictions including the U.S., Europe, and Singapore.