Paxos Acquires Fordefi for Over $100M to Expand DeFi Custody Solutions

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.

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 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: $149.72 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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