Paxos Acquires Institutional Wallet Provider Fordefi in Deal Reportedly Valued Over $100 Million

Blockchain infrastructure firm Paxos has announced the acquisition of Fordefi, a New York-based startup specializing in institutional crypto wallets and custody technology. While official terms were not disclosed, a Paxos spokesperson reportedly confirmed to Fortune that the deal is valued at over $100 million.

Fordefi, founded in 2021, is known for its multi-party computation (MPC) wallet technology designed specifically for decentralized finance (DeFi). The platform allows institutions to set governance rules for on-chain approvals and transaction signing, addressing the challenge of interacting with DeFi protocols without compromising compliance or security.

Paxos stated that the acquisition aims to merge its existing regulated custody and settlement capabilities with Fordefi’s MPC wallet technology. This combination is intended to create a unified platform where institutions can issue and manage stablecoins, tokenize assets, store private keys in a regulated environment, and interact directly with DeFi protocols.

"The deal shows that 'custody only' is no longer enough," the report noted, highlighting a shift where institutions now require both regulated storage and execution capabilities.

For the immediate future, Fordefi will continue to operate independently, with plans for Paxos to gradually integrate its technology into its broader infrastructure stack used by banks and fintechs.