Paxos Makes a Major Move Into DeFi
Paxos acquires Fordefi for more than $100m. The blockchain infrastructure firm confirmed the deal on Tuesday. It said the wallet developer will support its push into decentralised finance.
Fordefi is based in New York. It focuses on secure crypto wallet systems. It works with decentralised finance users. It also supports large institutions that want safe on-chain access.
Paxos said demand for DeFi access is rising. It said clients want a regulated path into on-chain markets. It also said they want stronger controls for digital assets.
“We have customers that want to be able to access DeFi and have the right capacity to do that,” said Charles Cascarilla, Paxos’ cofounder and CEO.
The company issues major stablecoins. It helps partners such as PayPal and Nubank offer crypto trading. It also supports new tokenised products. This deal expands that capability.
Fordefi has around 40 employees. It works with about 300 institutions. It was valued at $83m in its last fundraising round. The new deal places a far higher value on its technology and market fit.
Fordefi Brings Institutional Wallet Strength
Fordefi specialises in multi-party computation wallets. These wallets split signing authority. They remove single points of failure. They suit institutions that want secure DeFi exposure.
The company said it supports more than $120bn in monthly transaction volume. It connects to many DeFi apps. It also provides systems that approve transactions safely.
Its tools offer strong custody options. They also blend traditional and decentralised finance. They support compliance. They protect assets against common attack vectors.
Fordefi has staff in New York and Tel Aviv. It will continue to operate independently for now. Paxos plans a gradual integration. It wants to combine the wallet stack with its broader infrastructure.
Josh Schwartz, Fordefi’s CEO, said the deal expands the company’s reach. He said security remains its core priority. He also said innovation will continue.
The wider industry sees Fordefi as a strong entry point into DeFi. Its systems already support major protocols. Many institutions view its approach as safer than typical retail wallets.
Market Signals Shift Toward Safer DeFi Access
DeFi has carried risk for years. Lending protocols offer high yields. They also suffer frequent hacks and exploits. That reputation kept many large institutions away.
Conditions changed over the past year. Major exchanges now offer DeFi-linked features. Coinbase introduced lending access through the Morpho protocol. Banks started tokenising money-market funds. Investors see this as a step toward broader on-chain finance.
Paxos said it hears similar demands from its clients. It said many want safer DeFi choices. It said regulated infrastructure is the missing link.
The company’s regulated status supports this shift. It has a New York trust charter. It also gained MiCA compliance in Europe after it acquired Membrane Finance earlier this year.
Paxos plans to use Fordefi to strengthen its DeFi roadmap. It wants clients to access new yield products. It wants secure settlement on decentralised networks. It also wants consistent audit and compliance processes.
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Paxos Expands Its Global Infrastructure
The acquisition continues Paxos’ expansion strategy. It builds on its earlier deal for Membrane Finance. It also follows the launch of Paxos Labs. The unit helps partners embed DeFi tools into their platforms.
Fordefi’s technology will support this ecosystem. It will provide wallet-level access. It will offer transaction controls. It will help clients handle tokenised assets.
Paxos said it wants to create safer market rails. It said the future of finance will be on-chain. It sees regulated DeFi as a key step.
Fordefi’s systems match this vision. They allow institutions to use decentralised tools without major risk. They add clear permissions. They reduce operational complexity.
The company’s rapid growth reflects these needs. Its user base spans global institutions. Its tools help clients manage large transaction volumes. Many see it as a reliable path to institutional-grade DeFi.
A New Phase for On-Chain Institutions
The crypto market continues shifting toward regulated solutions. It focuses on transparency. It focuses on secure infrastructure. It focuses on bridging traditional finance and DeFi.
Paxos acquires Fordefi at a crucial moment. The deal shows how enterprises now treat DeFi. It also shows how wallet technology becomes central to that transition.
The company plans to integrate DeFi yields. It plans to expand tokenised assets. It plans to support new markets. Fordefi’s systems will support these steps.
The industry expects more acquisitions. Many firms want secure infrastructure. They want compliance. They want trust in decentralised systems. Paxos aims to lead this transition.
Fordefi will operate independently while integration begins. Paxos will onboard partners to the new wallet stack. Institutions will gain secure DeFi access. The market will gain stronger guardrails.
The acquisition marks a significant shift. It shows that regulated firms now take DeFi seriously. It also shows that the future of on-chain finance depends on secure wallets and stable infrastructure.
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