Paxos Buys Fordefi for $100M+ to Boost Institutional Crypto Services

Paxos acquires Fordefi for over $100 million, integrating its MPC wallet technology to expand regulated custody and DeFi services for institutional clients, reflecting rising demand for secure digital asset solutions.

Paxos has acquired Fordefi, an institutional crypto wallet startup, for over $100 million to expand its regulated custody and DeFi offerings. Fordefi, which operates multi-party computation (MPC)-based wallets for about 300 clients and safeguards over $120 billion in monthly transactions, will continue to operate independently while its technology is integrated into Paxos’ infrastructure. The acquisition aims to address growing institutional demand for secure, compliant digital asset custody and access to DeFi products. Paxos plans to leverage Fordefi’s wallet technology, policy engine, and API-driven DeFi connectivity to enhance its platform, enabling clients to issue stablecoins, tokenize assets, and build complex payment flows. This move follows Paxos’ earlier purchase of Membrane Finance and reflects its strategy to provide unified, secure, and regulated infrastructure for tokenization, stablecoin issuance, and on-chain financial operations. The deal positions Paxos as a key player in the institutional crypto market, offering advanced wallet technology and regulated custody solutions.