Crypto infrastructure firm Paxos has acquired New York–based wallet startup Fordefi in a deal valued at over $100 million.
The acquisition marks a significant expansion of Paxos’ product stack as the company accelerates efforts to provide secure, regulated crypto services to institutional clients worldwide.
Fordefi's Role in Decentralized Finance
Fordefi, founded in 2021, has built a reputation as a leading provider of wallet technology tailored for decentralized finance (DeFi) applications. Its flagship offering is a multi-party computation (MPC) wallet designed to give institutions granular control over on-chain operations while minimizing security risks.
The platform is already used by a range of trading firms, crypto funds, and on-chain asset managers that rely on advanced signing and policy tools to interact safely with DeFi protocols.
Integration and Future Vision
Paxos stated that bringing Fordefi under its umbrella will enhance its ability to support institutions that increasingly require secure access to both centralized and decentralized digital asset environments. While the acquisition is now complete, Fordefi will continue operating independently for the time being, maintaining its existing client base and product roadmap.
Paxos intends to integrate Fordefi’s MPC wallet technology into its broader infrastructure, which includes tokenization platforms, stablecoin issuance services, and regulated custody solutions.
The company believes the combined capabilities will give institutional users a more seamless and compliant way to engage with blockchain networks, trade digital assets, and experiment with emerging DeFi tools.
Strategic Implications for the Crypto Market
The deal underscores Paxos’ strategy of strengthening its regulatory-first positioning while competing with other major crypto service providers expanding into institutional custody and settlement.
It also highlights growing demand for secure DeFi access among large financial firms, an area where traditional custodians have moved cautiously due to compliance and operational challenges.
For Fordefi, the acquisition provides scale, capital, and access to Paxos’ global regulatory partnerships, potentially accelerating adoption of its wallet technology.
As both companies begin integration, the transaction could signal a new phase in institutional DeFi participation, blending regulated infrastructure with advanced on-chain capabilities.