Paxos Connects Compliant Infrastructure and Web3 Through $100M Purchase of Fordefi

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Paxos Connects Compliant Infrastructure and Web3 Through $100M Purchase of Fordefi

Bitget-RWA2025/11/25 17:30

By:Bitget-RWA

- Paxos acquired Fordefi for $100M+ to enhance custodial services with MPC technology and DeFi integrations. - Fordefi's $120B+ monthly volume and institutional-grade security align with Paxos' mission to provide compliant digital asset infrastructure. - The deal follows Paxos' earlier acquisition of Membrane Finance and reflects crypto industry consolidation to meet institutional demand for secure solutions. - Despite past regulatory challenges, Paxos continues expanding its enterprise client base includi

Paxos, a prominent provider of regulated blockchain infrastructure, has

taken over Fordefi

to enhance its custody services and address the rising need for robust digital asset security. This deal,

worth more than $100 million

, merges Paxos' extensive experience in compliant infrastructure with Fordefi's advanced multi-party computation (MPC) wallet system and

DeFi integration capabilities

. This acquisition highlights Paxos' commitment to becoming a comprehensive platform for businesses looking to tokenize assets, launch stablecoins, and manage complex payments, all while maintaining strict regulatory compliance

as outlined in the report

Established in 2021, Fordefi is based in New York with an office in Tel Aviv, and its wallet platform is trusted by close to 300 institutions worldwide,

safeguarding over $120 billion

in monthly transactions. Its MPC solution provides secure, institutional-level custody by splitting cryptographic keys among several parties, minimizing single-point failure risks. Paxos CEO and co-founder Charles Cascarilla remarked that this acquisition supports the company's vision of delivering impartial, enterprise-level infrastructure for the digital asset sector. "

Fordefi’s technology stack and client network

, built on API-driven and seamless web3 access, are a strong fit with our regulated custody strengths," he commented.

This purchase comes after a phase of rapid growth for Paxos, which

earlier this year acquired Membrane Finance, a Finnish stablecoin provider

to expand its presence in Europe under MiCA regulations. Paxos, known for issuing stablecoins like PayPal USD (PYUSD) and

Pax Dollar

(USDP), has previously encountered regulatory challenges, such as a

$26.5 million settlement

with the New York State Department of Financial Services related to the 2018 launch of Binance USD (BUSD). Despite these hurdles, Paxos continues to draw institutional partners,

with its technology powering leading companies

including PayPal, Mastercard, and Nubank.

Fordefi CEO Josh Schwartz stated that becoming part of Paxos will enable the company to expand its technology while keeping its focus on security and innovation. "

By working together, we can deliver

the integrated custody and stablecoin infrastructure enterprises require to implement large-scale digital asset solutions," he said. Fordefi will maintain its independent operations for now,

with plans to merge into Paxos’ infrastructure

in the future.

This acquisition mirrors a larger trend in the crypto sector, where companies are joining forces to better serve institutional needs for secure and compliant services.

As adoption of digital assets continues to grow

, bringing Fordefi’s MPC technology into the Paxos ecosystem is set to boost Paxos’ ability to support clients in both centralized and decentralized finance markets.

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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