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Paxos Purchases Fordefi to Enhance Institutional DeFi Growth Security

Paxos Purchases Fordefi to Enhance Institutional DeFi Growth Security

Bitget-RWA2025/11/25 20:10
By:Bitget-RWA

- Paxos acquires Fordefi for $100M+ to enhance DeFi custody, stablecoin issuance, and asset tokenization capabilities. - Fordefi's MPC wallet technology, securing $120B+ monthly volume across 90+ blockchains, will integrate into Paxos' infrastructure. - The deal expands institutional access to secure on-chain solutions for clients like PayPal and Mastercard amid rising DeFi adoption. - Paxos faces regulatory scrutiny after a $26.5M fine but aims to address institutional DeFi compliance challenges through t

Paxos, a prominent provider of regulated blockchain infrastructure, has

, a company specializing in institutional-level crypto custody and wallet solutions, aiming to enhance its capabilities in stablecoin creation, asset tokenization, and blockchain-based operations. The transaction, reportedly exceeding $100 million in value , merges Paxos’ extensive experience in regulated asset custody with Fordefi’s advanced multi-party computation (MPC) wallet framework and DeFi connectivity . Established in 2021, Fordefi introduced one of the earliest institutional MPC wallets designed for DeFi, in monthly transaction activity.

This acquisition broadens Paxos’ capacity to deliver an integrated platform for institutional clients to issue stablecoins, tokenize assets, and oversee on-chain transactions

. Fordefi’s solutions, which feature a leading policy engine and compatibility with over 90 blockchain networks, will gradually become part of Paxos’ infrastructure . In the interim, Fordefi will maintain its independent operations, ensuring current clients can continue their processes during the transition .

Paxos CEO Charles Cascarilla highlighted the strategic alignment,

enhances Paxos’ goal of delivering secure, regulated custody for sophisticated digital assets. Fordefi CEO Josh Schwartz remarked that the collaboration will help scale real-world digital asset applications . The unified company will serve major partners including PayPal, Mastercard, and Interactive Brokers, with Paxos responsible for issuing stablecoins such as PayPal USD (PYUSD) and (USDP) .

This move is in line with the wider trend of integrating DeFi protocols into mainstream financial platforms. For example,

and Crypto.com have recently added DeFi lending features such as to provide users with increased returns on stablecoins . As of October 2025, DeFi protocols collectively manage about $116 billion in total value locked , reflecting the rising institutional appetite for robust and secure blockchain infrastructure.

This latest acquisition follows Paxos’ earlier purchase of Finland-based Membrane Finance in 2025, a move to strengthen its presence in Europe under the MiCA regulatory regime

. Paxos, which holds licenses in the U.S., Europe, and Singapore, is operating under increased regulatory scrutiny. Earlier this year, the company agreed to pay $26.5 million to resolve a dispute with New York’s financial regulator regarding its involvement in the 2018 launch of Binance USD .

This transaction highlights the surge in mergers and acquisitions within the stablecoin industry, as companies like Stripe and Coinbase work to solidify their roles in the fast-changing blockchain sector

. By leveraging Fordefi’s MPC technology, Paxos seeks to tackle the security and compliance issues that institutions encounter in decentralized finance, for the on-chain economy.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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