Paxos Acquires Fordefi for Over $100M to Power Enterprise DeFi

Blockchain infrastructure platform Paxos has acquired institutional-grade custody and wallet technology provider Fordefi. The deal marks Paxos’ strategic push into decentralized finance as major enterprises seek regulated access to DeFi protocols.

The acquisition was valued at over $100 million, according to sources familiar with the transaction. Fordefi was last valued at $83 million during its previous fundraising round.

Paxos is acquiring @FordefiHQ, the leading custody and wallet technology platform for on-chain operations.

This strengthens our ability to support institutions with more flexible and sophisticated digital asset infrastructure. pic.twitter.com/t7aFVhyflu

— Paxos (@Paxos) November 25, 2025

Fordefi will continue operating independently while Paxos integrates its technology over time. The Tel Aviv and New York-based startup serve nearly 300 institutional clients with its multi-party computation wallet platform.

Charles Cascarilla, CEO and co-founder of Paxos, stated the acquisition addresses customer demand for DeFi access through regulated infrastructure. He declined to name specific clients requesting these capabilities.

Paxos Push into Decentralized Finance

The deal combines Paxos’ decade of regulated custody experience with Fordefi’s MPC wallet architecture and DeFi integrations. Clients will access stablecoin issuance, asset tokenization, and complex payment flows through a unified platform.

Founded in 2021, Fordefi employs approximately 40 people and specializes in solving security and policy challenges unique to decentralized finance. Its platform uses MPC technology alongside policy engines for institutional-grade security.

Josh Schwartz, CEO of Fordefi, said joining Paxos enables broader distribution of its wallet technology while maintaining focus on security and usability. The combined infrastructure aims to support real-world digital asset deployments at scale.

Paxos provides crypto infrastructure for PayPal and Nubank, enabling these companies to offer digital asset trading. The firm also issues PayPal’s stablecoin, which holds over $3.6 billion in market capitalization.

Meanwhile, DeFi has gained traction among traditional institutions despite historical security concerns. Coinbase launched borrowing features through Morpho protocol in September, while banks have begun tokenizing money-market funds.

Second Acquisition in Twelve Months

This marks Paxos’ second acquisition within a year. In February, the company purchased Membrane Finance, a Finnish stablecoin issuer, to achieve MiCA compliance for European Union operations.

This morning, we finalized the acquisition of Membrane Finance, officially becoming a fully licensed EMI in Finland and the EU. 🇫🇮🇪🇺

This milestone allows us to expand our regulated platform to serve European customers safely and responsibly, while paving the way for MiCA… pic.twitter.com/hzYocgdrT3

— Paxos (@Paxos) February 4, 2025

The Membrane deal provided Paxos with regulatory authorization under the EU’s crypto framework. Paxos holds a trust charter from New York’s Department of Financial Services, issued in 2015.

Following the Fordefi acquisition, Paxos will offer enterprises unified custody combining regulated qualified custody with advanced wallet technology. The integration addresses institutional requirements for complex custody solutions across multiple use cases.

Cascarilla emphasized that market participants consistently request regulated platforms capable of meeting diverse custody needs. The Fordefi technology stack and API-driven approach complement Paxos’ enterprise-grade infrastructure.

Paxos continues international expansion with preliminary approval in Singapore and regulatory clearance from Abu Dhabi. These authorizations cover stablecoin issuance and broader digital asset services.

The company previously faced regulatory challenges, including ceasing Binance USD issuance earlier in 2023 following NYDFS direction. Despite setbacks, Paxos maintains positioning as a heavily regulated stablecoin issuer.

Fordefi’s customer base includes institutions requiring seamless web3 connectivity alongside robust security frameworks. The startup’s policy engine enables granular control over transaction approvals and risk management protocols.

As institutional adoption of blockchain infrastructure accelerates, regulated custody solutions have become critical for enterprise participation. The Paxos-Fordefi combination provides compliant pathways into previously inaccessible DeFi ecosystems.