The acquisition enhances Paxos’ regulated blockchain framework with institutional-grade MPC wallet technology and deeper DeFi integrations
Paxos has announced the acquisition of Fordefi, a New York–based institutional wallet and custody technology firm, in a move that significantly expands its capabilities across stablecoin issuance, tokenization, and institutional on-chain operations. The strategic deal brings together Paxos’ regulated infrastructure with Fordefi’s advanced multi-party computation (MPC) wallet technology, strengthening the company’s position as a leading provider of secure digital-asset services for global enterprises.
Paxos Expands Regulated Infrastructure With Fordefi Technology
Paxos said the integration of Fordefi will provide institutions with a single platform to issue stablecoins, tokenize assets, and manage on-chain transactions. The company emphasized that combining custody oversight with MPC technology will allow clients to execute blockchain operations with higher security and compliance.
Fordefi, founded in 2021, created one of the first institutional MPC wallets tailored for DeFi participation. The technology includes granular governance controls enabling companies to authorize and sign on-chain activity securely. For now, Fordefi will continue operating independently as Paxos gradually incorporates its platform.
Paxos Strengthens Its Global Role in Stablecoins and Tokenization
Paxos already provides regulated blockchain services to large enterprises, including PayPal, Mastercard, and Interactive Brokers. The company issues multiple stablecoins, such as PayPal USD (PYUSD), Pax Dollar (USDP), Pax Gold (PAXG), and Global Dollar (USDG), and is licensed across the United States, Europe, and Singapore.
With Fordefi’s infrastructure, Paxos aims to deliver expanded functionality to institutions seeking to tokenize financial products, manage custody, or integrate permissioned DeFi into their operations.
DeFi protocols currently hold around $116 billion in total value locked, down from nearly $170 billion before the October liquidation shock, according to DefiLlama.
DeFi Adoption Surges Across Major Exchanges
The acquisition comes amid a broader industry trend of major exchanges embedding DeFi features directly into their platforms.
- Kraken partnered with Solana-based DeFi Development Corp to bring tokenized Kraken shares on-chain through xStocks.
- Coinbase integrated the Morpho lending protocol, enabling users to lend USDC directly within the app and earn yields up to 10.8%.
- Crypto.com added Morpho to its Cronos blockchain, allowing users to earn yields on wrapped Bitcoin and Ether.
By acquiring Fordefi, Paxos is positioning itself at the center of institutional blockchain adoption. The combined infrastructure — regulated custody, MPC security, and integrated tokenization tools — reflects the accelerating shift toward institutional-grade on-chain finance, where compliance and secure execution are becoming essential pillars of digital-asset growth.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.