Paxos Combines Regulated Asset Storage with DeFi Protection Through Fordefi Acquisition
- Paxos acquires Fordefi for over $100M to enhance DeFi custody solutions via MPC wallet integration. - The deal combines Fordefi's institutional-grade security with Paxos' regulated infrastructure for on-chain transaction management. - This marks Paxos' second major acquisition in 2024, following Membrane Finance, as DeFi protocols hold $116B in total value locked. - The move aligns with global regulatory shifts toward DeFi oversight and growing institutional demand for secure crypto infrastructure.
Paxos, a prominent provider of blockchain infrastructure, has purchased Fordefi, a crypto wallet startup focused on institutional clients, for more than $100 million. This strategic acquisition is designed to enhance Paxos’ decentralized finance (DeFi) custody offerings. The transaction,
Established in 2021, Fordefi
Paxos CEO and co-founder Charles Cascarilla highlighted the synergy between the two firms. “By joining forces, Paxos and Fordefi deliver a top-tier custody platform that leverages advanced wallet innovation and regulated, qualified custody,” he said. This acquisition demonstrates the increasing institutional appetite for secure and compliant DeFi access, a sector that continues to grow rapidly despite ongoing risks like security breaches and regulatory ambiguity.
Licensed in the United States, Europe, and Singapore, Paxos has played a pivotal role in connecting traditional finance with blockchain technology.
This transaction also reflects a wider movement in the industry, with institutional players increasingly adopting DeFi protocols in their service offerings. Firms like Kraken,
Paxos’ move into DeFi custody comes as regulators worldwide start to establish formal guidelines for decentralized finance. For example, new regulations in the UAE now cover DeFi and Web3 technologies. Paxos’ commitment to compliance positions the company to benefit from the increasing need for institutional-grade crypto infrastructure.
Although the specific details of the Fordefi acquisition have not been made public,
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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