Paxos Expands DeFi Services with $100 Million Fordefi Acquisition

TLDR

• Paxos has acquired the DeFi wallet startup Fordefi for over $100 million.
• The acquisition will allow Paxos to integrate Fordefi’s wallet into its infrastructure gradually.
• Paxos aims to offer its clients safer and more flexible access to decentralized finance.
• Fordefi specializes in institutional-grade custody and multi-party computation wallets.
• The acquisition will help Paxos enhance its DeFi services for enterprise customers.

Paxos has announced its acquisition of Fordefi, a DeFi wallet startup, for over $100 million. The deal, finalized on November 25, 2025, will allow Paxos to gradually integrate Fordefi’s wallet into its own infrastructure. This acquisition strengthens Paxos’ position in the DeFi space, providing its enterprise clients with safer and more flexible access to decentralized finance.

Paxos Expands into DeFi

Paxos aims to provide its clients with regulated, secure access to decentralized finance. The company has been expanding its offerings, particularly in on-chain finance. Charles Cascarilla, CEO of Paxos, stated that there is a growing demand for better DeFi access within a secure environment.

Paxos has seen opportunities to integrate DeFi solutions for institutional clients. Fordefi’s technology, known for its robust security features, aligns with Paxos’ goal of offering secure DeFi services. The wallet stack will be integrated gradually into Paxos’ broader infrastructure, enhancing their service offerings to clients.

For now, Fordefi will continue to operate independently, and its team will remain in place. The integration process is expected to unfold over time, ensuring a seamless transition. Fordefi’s existing clients and technology will continue to function without disruption during this period.

Fordefi Joins Paxos to Scale DeFi Technology

Fordefi, founded in 2021, has gained traction in the blockchain space by focusing on institutional-grade custody and multi-party computation wallets. These wallets are designed to bridge traditional finance and decentralized finance. The company has also built strong relationships with nearly 300 institutions and processes over $120 billion in monthly transactions.

Josh Schwartz, CEO of Fordefi, expressed confidence that the acquisition would allow the company’s technology to reach a larger audience. He emphasized the company’s commitment to maintaining its focus on security and innovation. The partnership with Paxos offers an opportunity to scale Fordefi’s services while maintaining its core principles.

Earlier in 2025, Paxos acquired Membrane Finance, a Finnish e-money institution. This acquisition helped Paxos expand its operations in Europe, particularly under the MiCA (Markets in Crypto-Assets) regulations. Paxos has continued to strengthen its position in the global crypto market through strategic acquisitions and product launches, including the acquisition of Paxos Labs.

Paxos Labs assists partners in embedding DeFi products such as stablecoins and tokenized assets into their platforms. This expansion strategy reflects Paxos’ commitment to building a broader, more integrated ecosystem for decentralized finance.

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