Paxos Combines Regulated Asset Storage with DeFi Protection Through Fordefi Acquisition

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Paxos Combines Regulated Asset Storage with DeFi Protection Through Fordefi Acquisition

Bitget-RWA2025/11/25 23:28

By:Bitget-RWA

- 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,

as verified by several sources

, will see Fordefi’s multi-party computation (MPC) wallet technology incorporated into Paxos’ regulated custody platform, allowing institutional users to securely handle on-chain transactions and interact with DeFi services. This marks Paxos’ second significant acquisition within a year, following its purchase of Finnish stablecoin provider Membrane Finance.

Established in 2021, Fordefi

is known for its expertise in MPC wallet solutions

that protect digital assets for more than 300 institutional customers, overseeing over $120 billion in monthly transaction value. Fordefi’s platform enables decentralized transaction management, allowing institutions to approve and

authorize

on-chain activities without depending on conventional custodians.

Merging Fordefi’s technology

with Paxos’ regulated framework, the company intends to deliver an integrated solution for stablecoin creation, asset tokenization, and on-chain settlements.

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.

The company is responsible for issuing stablecoins

such as PayPal USD (PYUSD) and Global Dollar (USDG), and collaborates with leading organizations like PayPal, Mastercard, and Interactive Brokers. The acquisition of Fordefi highlights Paxos’ broader ambition to provide a full range of crypto services under regulatory compliance, including custody, stablecoin issuance, and DeFi integrations.

This transaction also reflects a wider movement in the industry, with institutional players increasingly adopting DeFi protocols in their service offerings. Firms like Kraken,

Coinbase

, and Crypto.com have recently broadened their on-chain services, incorporating DeFi lending and tokenized assets to attract clients looking for higher returns and improved liquidity. Data from DefiLlama shows that DeFi protocols now manage around $116 billion in total value locked, indicating rising trust in decentralized platforms.

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,

a representative from Paxos has stated

that the deal is valued at over $100 million. This acquisition is set to bolster Paxos’ position in a market where robust and scalable custody solutions are essential for institutional adoption of digital assets.

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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