Paxos Acquires Fordefi to Secure Enterprise-Grade DeFi Adoption

Paxos, a leading regulated blockchain infrastructure platform, has acquired Fordefi, an institutional-grade custody and wallet technology provider, in a deal valued at over $100 million. The acquisition aims to strengthen institutional-grade decentralized finance (DeFi) wallet infrastructure, combining Paxos' decade-long expertise in regulated custody with Fordefi's multi-party computation (MPC) wallet architecture and DeFi integrations according to the company announcement.

The move underscores growing demand for secure, scalable solutions in the digital asset space, particularly as enterprises seek to tokenize assets, issue stablecoins, and execute complex on-chain transactions. Fordefi's platform, which already serves nearly 300 institutions, offers advanced MPC technology that eliminates single points of failure by distributing cryptographic control across multiple parties. This aligns with Paxos' mission to provide "enterprise-grade" infrastructure for the on-chain financial economy as stated in the announcement.

Charles Cascarilla, CEO and co-founder of Paxos, emphasized the strategic synergy: "Fordefi has built an impressive stack and customer base founded on easy-to-use APIs and seamless web3 connectivity. Together, we provide customers with a world-class custody solution built upon advanced wallet technology and regulated, qualified custody." The integration will allow Paxos clients to leverage Fordefi's MPC-based security and DeFi capabilities while benefiting from Paxos' regulatory compliance framework per the company's statement.

Fordefi's CEO, Josh Schwartz, noted that the acquisition enables the company to expand its reach while maintaining its focus on security and innovation. "Joining Paxos allows us to bring our technology to an even broader audience," Schwartz said, adding that the combined platform will empower enterprises to deploy "real-world digital asset use cases at scale" according to company leadership.

The acquisition reflects broader trends in the DeFi sector, where institutional adoption is accelerating. Fordefi's MPC technology, which secures over $120 billion in monthly transaction volume, addresses critical concerns around custody and governance. By integrating Fordefi's infrastructure, Paxos aims to offer clients a unified solution for custody, stablecoin issuance, and compliance, positioning itself as a key player in the evolving digital asset ecosystem as reported by industry analysts.

Paxos, which is licensed by regulators in the U.S., Europe, Singapore, and the UAE, has long positioned itself as a bridge between traditional finance and blockchain. Its clients include PayPal, Mastercard, and Nubank, and it issues regulated digital assets such as PayPal USD (PYUSD) and Pax Dollar (USDP). The company has raised over $500 million from investors including Founders Fund and PayPal Ventures according to company disclosures.

Fordefi, founded in 2021, has emerged as a leader in institutional custody solutions, operating in New York and Tel Aviv. Its technology enables secure, policy-driven digital asset operations across centralized and decentralized workflows, with built-in DeFi connectivity. The acquisition terms were not disclosed, but industry analysts suggest the deal could set a precedent for further consolidation in the custody technology sector.

As digital assets continue to gain traction among institutional investors, the demand for robust custody solutions is expected to rise. Paxos' acquisition of Fordefi highlights the growing importance of MPC-based security and regulatory compliance in attracting enterprise clients. With this move, the combined entity aims to solidify its position as a foundational infrastructure provider for the on-chain financial economy according to company statements.