Paxos Places Its Bet on DeFi Evolution, Blending Safety and Decentralization
Bitget-RWA2025/11/25 16:26
By: Bitget-RWA
- Paxos acquires Fordefi in a $100M+ strategic move to enhance on-chain economy offerings through MPC wallet tech and DeFi integrations. - Fordefi's $120B+ monthly transaction volume and 300+ institutional clients will expand Paxos' secure custody solutions for tokenized assets. - The acquisition aligns with growing institutional demand for regulated platforms bridging traditional finance and decentralized infrastructure. - As Paxos' second major acquisition this year, it reinforces the company's position
Paxos, a prominent regulated blockchain infrastructure provider,
has acquired Fordefi
in a strategic effort to enhance its capabilities within the on-chain economy. While Paxos did not reveal the financial details of the deal, it was reported by a spokesperson to be over $100 million
. This acquisition brings together Paxos' extensive experience in regulated custody services with Fordefi's advanced multi-party computation (MPC) wallet technology
and robust DeFi integrations. The collaboration is designed to offer clients a comprehensive solution for stablecoin issuance, asset tokenization, and managing complex payment processes, all while upholding stringent security and regulatory standards. Founded in 2021, Fordefi is based in New York and has an office in Tel Aviv. The company
supports close to 300 institutional clients worldwide
and secures more than $120 billion in monthly transaction value. Its MPC wallet platform allows for safe and efficient digital asset management across both centralized and decentralized systems, helping to solve major challenges in DeFi integration
and governance. "Fordefi has developed a top-tier wallet platform that nearly 300 institutions rely on," stated Josh Schwartz, CEO of Fordefi, stressing that joining forces with Paxos
will broaden their impact while maintaining a commitment to innovation. 
Charles Cascarilla, CEO of Paxos, described the acquisition as a response to the increasing need for secure and flexible custody solutions as digital assets become more widely adopted. "Participants in the market are looking for a regulated partner that can address their diverse and complex custody requirements," he said,
highlighting that Fordefi's intuitive APIs
and web3 integration support Paxos' goal of connecting traditional finance with the digital asset world. The process of merging Fordefi's technology into Paxos' infrastructure will happen gradually, with Fordefi operating independently for the time being. This transaction is Paxos' second significant acquisition within a year,
following its earlier purchase of Finnish stablecoin provider Membrane Finance
to enhance compliance with EU regulations. Through these moves, Paxos further establishes itself as a major player in the $4.65 billion crypto venture capital market, serving clients such as PayPal, Mastercard
and Nubank. The company is licensed by authorities like the New York Department of Financial Services (NYDFS) and the Monetary Authority of Singapore, and issues stablecoins including PayPal USD (PYUSD)
as well as Pax Dollar
(USDP). This acquisition also mirrors larger trends in the industry. Traditional banks such as Standard Chartered and Citi
are increasing their involvement in crypto infrastructure
, while regulators around the world—including Japan, which is considering new reserve requirements for exchanges—are stepping up regulatory scrutiny
. For Paxos, the Fordefi acquisition signals a calculated move into DeFi, a space once considered too volatile for institutions but now drawing corporate interest in decentralized lending
and asset tokenization. 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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