• Paxos acquisition of Fordefi strengthens DeFi capabilities with advanced wallet security.

• The deal, announced on November 25, 2025, values Fordefi at over $100 million and supports nearly 300 institutions.

• Fordefi handles more than $120 billion in monthly transaction volume, combining traditional and decentralized finance.

Paxos acquires Fordefi for over $100M, boosting secure DeFi wallet integration. Discover how this enhances blockchain infrastructure for institutions. Stay updated on crypto mergers.

What is the Paxos Acquisition of Fordefi?

Paxos acquisition of Fordefi represents a strategic expansion into decentralized finance for the blockchain infrastructure provider. On November 25, 2025, Paxos announced it would purchase the New York-based startup for more than $100 million, aiming to integrate Fordefi’s secure wallet technology into its own systems. This acquisition allows Paxos to offer enterprise clients regulated access to DeFi applications while maintaining high security standards.

How Does Fordefi’s Technology Enhance Paxos’s Offerings?

Fordefi, founded in 2021, specializes in institutional-grade custody and multi-party computation (MPC) wallets that bridge traditional finance with decentralized systems. With offices in New York and Tel Aviv, the company employs 40 to 50 staff members and serves nearly 300 institutions. Its platform processes over $120 billion in monthly transaction volume, ensuring safe transaction approvals and connections to various DeFi applications.

Paxos’s CEO, Charles Cascarilla, highlighted the growing demand among clients for secure DeFi access within a regulated framework. Fordefi’s MPC technology distributes private keys across multiple parties, reducing single points of failure and enhancing security against hacks. This aligns with Paxos’s focus on compliant blockchain solutions, as evidenced by its regulated stablecoins like Pax Dollar and Pax Gold.

According to Fordefi’s own reports, the wallet’s design supports seamless integration with both centralized and on-chain environments, making it ideal for enterprises navigating crypto regulations. Post-acquisition, Fordefi’s team will operate independently initially, with gradual integration into Paxos’s infrastructure. Josh Schwartz, Fordefi’s CEO, stated that this partnership will broaden the reach of their secure technology while preserving innovation in wallet security.

Paxos’s recent activities underscore its DeFi ambitions. Earlier in 2025, it acquired Membrane Finance, a Finnish e-money institution, to expand operations in Europe under the Markets in Crypto-Assets (MiCA) regulation. Additionally, the launch of Paxos Labs enables partners to embed DeFi products such as stablecoins, yield strategies, and tokenized assets directly into their platforms. These steps demonstrate Paxos’s commitment to building a comprehensive ecosystem for institutional crypto adoption.

Industry experts, including analysts from blockchain research firms, note that such acquisitions are crucial for traditional players entering DeFi. They cite the need for robust custody solutions amid rising cyber threats, with global crypto hacks exceeding $1.7 billion in losses in 2024, per Chainalysis reports. Paxos’s move positions it to capture a larger share of the institutional market, projected to grow to $10 trillion by 2030 according to Deloitte insights.

Frequently Asked Questions

What prompted Paxos to acquire Fordefi?

Paxos sought Fordefi to address client demands for secure DeFi access in a regulated setting. The acquisition provides advanced MPC wallet technology, supporting over $120 billion in monthly volume and serving 300 institutions, enhancing Paxos’s blockchain offerings without compromising compliance.

Will Fordefi’s operations change after the Paxos acquisition?

Fordefi’s team and technology will remain independent for the time being, focusing on security and innovation. Paxos plans a gradual integration of the wallet into its infrastructure, ensuring continuity while expanding reach to more enterprise users seeking DeFi solutions.

How does this acquisition impact institutional DeFi adoption?

This deal bridges traditional finance and DeFi by offering secure, compliant tools. Institutions gain better access to on-chain applications, reducing risks like key vulnerabilities. With Paxos’s regulatory expertise, it fosters broader adoption among enterprises wary of unregulated crypto spaces.

Key Takeaways

• Paxos strengthens DeFi presence: The $100 million+ acquisition of Fordefi integrates secure MPC wallets, meeting enterprise needs for regulated on-chain finance.
• Enhanced security for institutions: Fordefi’s technology supports $120 billion in monthly volume, combining custody with DeFi connectivity to mitigate risks.
• Strategic European expansion: Building on the Membrane Finance deal, Paxos advances MiCA compliance, enabling global DeFi product embedding via Paxos Labs.

Conclusion

The Paxos acquisition of Fordefi marks a pivotal step in merging regulated blockchain infrastructure with advanced DeFi wallet solutions. By incorporating Fordefi’s institutional-grade custody and MPC technology, Paxos empowers clients with safer access to decentralized applications, aligning with MiCA standards and broader crypto trends. As the industry evolves, this integration promises to drive institutional participation in on-chain finance, offering a secure pathway for future innovations in tokenized assets and yield strategies.