Paxos Bridges Regulated Infrastructure and Web3 with $100M Fordefi Acquisition

Paxos, a leading regulated blockchain infrastructure platform, has acquired Fordefi to strengthen its custodial offerings and meet growing demand for secure digital asset solutions. The transaction, valued at over $100 million, combines Paxos' decade-long expertise in regulated infrastructure with Fordefi's multi-party computation (MPC) wallet architecture and decentralized finance (DeFi) integrations. The move underscores Paxos' strategy to position itself as a one-stop platform for enterprises seeking to tokenize assets, issue stablecoins, and execute complex payment flows while adhering to stringent compliance standards according to the report.

Fordefi, founded in 2021 and headquartered in New York with offices in Tel Aviv, operates a wallet platform trusted by nearly 300 global institutions and secures over $120 billion in monthly transaction volume. Its MPC technology enables secure, institutional-grade custody by distributing cryptographic keys across multiple parties, reducing the risk of single points of failure. Charles Cascarilla, CEO and co-founder of Paxos, emphasized that the acquisition aligns with the company's mission to provide neutral, enterprise-grade infrastructure for the digital asset economy. "Fordefi's stack and customer base, built on APIs and seamless web3 connectivity, complement our regulated custody expertise," he stated.

The acquisition follows a period of aggressive expansion for Paxos, which previously acquired Finland-based stablecoin issuer Membrane Finance earlier this year to gain a foothold in the European market under MiCA compliance. The company, which issues stablecoins such as PayPal USD (PYUSD) and Pax Dollar (USDP), has faced regulatory scrutiny in the past, including a $26.5 million settlement with the New York State Department of Financial Services over the 2018 launch of Binance USD (BUSD). Despite these challenges, Paxos continues to attract institutional clients, with its infrastructure supporting major brands like PayPal, Mastercard, and Nubank.

Josh Schwartz, CEO of Fordefi, noted that joining Paxos will allow the firm to scale its technology while maintaining its focus on security and innovation. "Together, we will offer enterprises the unified custody and stablecoin infrastructure they need to deploy real-world digital asset use cases at scale," he said. Fordefi will continue operating independently in the short term, with integration into Paxos' infrastructure planned over time.

The deal reflects broader trends in the crypto industry, where firms are consolidating to address institutional demand for secure, compliant solutions. As digital asset adoption accelerates, the integration of Fordefi's MPC technology into Paxos' platform is expected to enhance the latter's ability to serve clients across both centralized and decentralized finance ecosystems.