Key Notes
- Fordefi's MPC-based wallet technology will integrate into Paxos' custody infrastructure while maintaining independent operations.
- The acquisition marks Paxos' second purchase in a year, following its Membrane Finance deal as institutional DeFi interest surges.
- Paxos continues expanding beyond stablecoins like PYUSD and USDG to offer comprehensive regulated crypto services.
Paxos, a company known for issuing stablecoins like PayPal USD, is acquiring Fordefi, an institutional crypto wallet startup, for over $100 million. The acquisition addresses rising demand from Paxos’ customers for regulated access to decentralized finance (DeFi) products, according to the company.
Fordefi operates multi-party computation (MPC)-based wallets that enable secure crypto custody and DeFi protocol interaction for about 300 clients, based on the announcement . The startup will continue operating independently while its technology is integrated into Paxos’ custody infrastructure.
“Together, Paxos and Fordefi provide customers with a world-class custody solution built upon advanced wallet technology and regulated, qualified custody. We’re excited to welcome Fordefi to our team as we enter this new phase of growth,” Charles Cascarilla, CEO and co-founder of Paxos, commented.
The specifics of the deal were not made public, and a Paxos spokesperson revealed to Fortune that the agreement was valued at more than $100 million.
Paxos is acquiring @FordefiHQ , the leading custody and wallet technology platform for on-chain operations.
This strengthens our ability to support institutions with more flexible and sophisticated digital asset infrastructure. pic.twitter.com/t7aFVhyflu
— Paxos (@Paxos) November 25, 2025
Paxos Keeps Growing its Portfolio of Products
This deal is the second acquisition Paxos has made in the last year, following its purchase of Finnish stablecoin issuer Membrane Finance . These moves reflect growing institutional interest in tokenized assets and decentralized lending, despite ongoing industry risks such as hacks.
Since 2023, Paxos has launched new stablecoins, including PayPal’s PYUSD PYUSD $1.00 24h volatility: 0.1% Market cap: $3.74 B Vol. 24h: $149.31 M , which is expected to keep growing in 2025; USDG , which aims to challenge USDT’s dominance; and USDH for the Hyperliquid platform, which is scheduled to launch in 2025.
Paxos, initially founded in 2012 and regulated by New York State, has been a notable player in bridging traditional finance and blockchain technology. With this acquisition, it is reinforcing its strategy to offer customers more ways to participate in the crypto economy, including stablecoins, custody, and DeFi, under regulatory oversight.
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