Blockchain infrastructure firm Paxos has announced the acquisition of Fordefi, a New York-based startup specializing in institutional crypto wallet and custody technology.
This purchase aims to integrate Fordefi’s multi-party computation (MPC) wallet technology with Paxos’ regulated custody framework, thereby providing institutions with a unified platform for issuing stablecoins, asset tokenization, and managing on-chain transactions.
While specific transaction details were not revealed, a spokesperson from Paxos mentioned to Fortune that the acquisition was valued at over $100 million. Fordefi, established in 2021, is noted for creating one of the pioneering institutional MPC wallets designed for DeFi, which includes governance features for authorizing on-chain transactions.
Fordefi is expected to operate independently for the time being, while Paxos plans to incorporate its technology into its existing infrastructure eventually.
Paxos, a regulated blockchain infrastructure provider, delivers custody and tokenization services along with stablecoin offerings for prominent enterprises such as PayPal, Mastercard, and Interactive Brokers. The company is sanctioned in the US, Europe, and Singapore, facilitating several stablecoins such as PayPal USD (PYUSD), Pax Dollar (USDP), Pax Gold (PAXG), and Global Dollar (USDG).
DeFi Expands Across Exchanges
In the broader cryptocurrency industry, firms are increasingly integrating DeFi protocols into their operations, enabling direct user access to on-chain lending, tokenized assets, and yield-generating tools. For instance, in June, Kraken collaborated with Solana-based DeFi Development Corp to launch its xStocks platform, facilitating on-chain trading of Kraken shares. In October, Crypto.com integrated Morpho Lending on its native Cronos blockchain, allowing users to earn yields on stablecoins tied to wrapped Bitcoin (BTC) and Ether (ETH).
Currently, DeFi protocols hold approximately $116 billion in total value locked (TVL); the TVL was around $170 billion prior to a recent large liquidation event.
