Stablecoin issuer Paxos acquires Fordefi, bolstering its crypto custody and wallet offering
Quick Take Fortune reported Paxos’ second acquisition of the year was for more than $100 million. Fordefi offers an institutional-grade multi-party computation (MPC) wallet solution that reportedly safeguards over $120 billion in monthly transaction volume.
Stablecoin issuer Paxos appears to be ramping up its M&A activity. On Tuesday, the firm said it has acquired digital asset storage platform Fordefi to bolster its crypto custody and wallet offerings.
Fortune reported the acquisition was for more than $100 million and that the terms were undisclosed. The startup, founded in 2021, has raised at least $28 million , as of its last publicly announced funding round in 2024.
The New York- and Tel Aviv-based Fordefi will continue operating independently while Paxos works to integrate its “wallet-as-a-service” tech and operations, according to the statement.
Fordefi offers an institutional-grade multi-party computation (MPC) wallet solution that reportedly safeguards over $120 billion in monthly transaction volume. Paxos noted that via the integrated companies, “Clients will be able to build upon a single, trusted platform to issue stablecoins, tokenize assets, and build complex payment flows.”
“[Fordefi provides] robust transaction processing, a market-leading policy engine, support for more than 90 chains and integrated compliance tools,” Paxos wrote on X. “Together we will accelerate the future of secure institutional on-chain finance.”
Paxos is one of the dominant stablecoin providers — often the company tapped by brands like Binance and PayPal when they want to launch bespoke and branded stablecoins. PayPal’s PYUSD is now the sixth-largest dollar-pegged stable with a $3.7 billion market cap, according to The Block’s data .
In August, Paxos Trust Company agreed to pay a $26.5 million fine to settle a years-long legal dispute with the New York State Department of Financial Services over the 2018 launch of Binance USD, a.k.a. BUSD.
Earlier this year, Paxos acquired Finland-based stablecoin issuer Membrane Finance, giving it access to the European market under the MiCA compliance regime.
Both deals come amid a flurry of crypto M&A activity, particularly in the stablecoin sector, as firms like Coinbase and Stripe look to gain a foothold in one of the most promising blockchain segments.
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.
You may also like
The "Bankruptcy" of Metcalfe's Law: Why Are Cryptocurrencies Overvalued?
Currently, the pricing of crypto assets is largely based on network effects that have yet to materialize, with valuations clearly outpacing actual usage, retention, and fee capture capabilities.

Need Funding, Need Users, Need Retention: A Growth Guide for Crypto Projects in 2026
When content becomes saturated, incentives become more expensive, and channels become fragmented, where lies the key to growth?

EOS faces renewed turmoil as the community accuses the Foundation of running away with the funds
The collapse of Vaulta is not only a tragedy for EOS, but also a reflection of the shattered ideals of Web3.

Exclusive: Revealing the Exchange’s New User Acquisition Strategy—$50 for Each New User
Crypto advertising has evolved from being barely noticeable to becoming pervasive everywhere.

