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<p>Paxos is expanding well beyond its stablecoin roots with the acquisition of Fordefi, a crypto wallet startup known for its institutional-grade MPC security infrastructure.</p>
<p><strong><a href="https://www.morningstar.com/news/pr-newswire/20251125ny32638/paxos-acquires-fordefi-to-build-the-custody-infrastructure-layer-to-power-the-on-chain-economy#:~:text=USDG%20is%20also%20issued%20by,Founders%20Fund%20and%20PayPal%20Ventures.&amp;text=Fordefi%20is%20the%20leading%20custody,visit%20www.fordefi.com." rel="noopener noreferrer nofollow">The deal</a></strong>, reportedly valued at over $100 million, brings advanced wallet technology directly into Paxos’ regulated ecosystem as demand for secure on-chain financial services accelerates among enterprises and financial institutions.</p>
<h3 id="a-strategic-push-into-institutional-defi">A Strategic Push Into Institutional DeFi</h3>
<p>Paxos CEO Charles Cascarilla said clients increasingly want a regulated partner that can help them access DeFi without sacrificing compliance or security. By acquiring Fordefi, Paxos positions itself to provide the full stack: custody, tokenization, stablecoin issuance, and permissioned DeFi rails, all inside a single regulated platform.</p>
<p>This move signals Paxos’ intention to build far more than stablecoins like PayPal USD (PYUSD). It reflects a broader industry trend where major fintech firms are buying wallet infrastructure to support the next phase of institutional blockchain adoption.</p>
<h3 id="fordefi-s-mpc-technology-becomes-a-core-paxos-asset">Fordefi’s MPC Technology Becomes a Core Paxos Asset</h3>
<p>Fordefi brings its multi-party computation (MPC) wallet architecture, one of the highest-security standards used in institutional custody. The technology eliminates single points of failure and enables secure, policy-controlled access to DeFi protocols. Fordefi’s integrations are already used by nearly 300 institutional clients, making it a mature and battle-tested infrastructure layer.</p>
<p><strong>The acquisition enables Paxos to offer enterprises:</strong></p>
<ul>
 <li>Secure enterprise-grade MPC custody</li>
 <li>On-chain payment flows</li>
 <li>Asset tokenization tools</li>
 <li>Stablecoin issuance rails</li>
 <li>Regulated access to DeFi</li>
</ul>
<p>All under the umbrella of Paxos’ trust-chartered, compliance-first framework.</p>
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<h3 id="integration-timeline-and-future-plans">Integration Timeline and Future Plans</h3>
<p>Fordefi will continue to operate independently for now, maintaining its existing products and team. Over time, its wallet technology will be merged into Paxos’ core systems, forming the backbone of a unified institutional platform.</p>
<p>This is Paxos’ second acquisition in a year, following its purchase of Membrane Finance, the Finnish firm behind the EUROe stablecoin. Both moves align with tightening European regulatory standards and the rising need for secure, compliant digital-asset infrastructure across global markets.</p>
<p>As fintechs increasingly compete to provide institutional crypto rails, Paxos’ acquisition of Fordefi positions it as a leading regulated provider capable of supporting everything from DeFi access to enterprise stablecoin deployment.</p>
<p>The post <a href="https://www.ethnews.com/paxos-acquires-fordefi-to-strengthen-institutional-crypto-custody/" rel="noopener noreferrer nofollow">Paxos Acquires Fordefi to Strengthen Institutional Crypto Custody</a> appeared first on <a href="https://www.ethnews.com" rel="noopener noreferrer nofollow">ETHNews</a>.</p>

Paxos Acquires Fordefi to Strengthen Institutional Crypto Custody

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