Paxos Acquires Wallet Startup Fordefi in $100M DeFi Push
Paxos will acquire Fordefi for $100M+ to expand into DeFi wallet infrastructure and services.
- Paxos is buying wallet startup Fordefi in a $100M+ deal
- The move signals Paxos’ entry into DeFi infrastructure
- Acquisition boosts Paxos’ wallet and custody capabilities
Paxos Buys Fordefi in Major DeFi Expansion
In a major move signaling its entrance into the decentralized finance (DeFi) space, Paxos has announced the acquisition of Fordefi, a New York–based crypto wallet startup, in a deal worth over $100 million. The deal represents a strategic shift for Paxos, known for its regulated stablecoin and blockchain infrastructure services.
Fordefi is well-regarded for its multi-party computation (MPC) wallet infrastructure, offering secure and scalable solutions for institutions operating in DeFi. The acquisition will allow Paxos to directly offer wallet custody, key management, and transaction signing tools tailored for both institutional and DeFi use cases.
Why Paxos Is Betting Big on Wallet Infrastructure
Paxos has long maintained a reputation as one of the most compliance-focused blockchain companies, having issued regulated stablecoins and powered crypto services for platforms like PayPal and Revolut. However, its limited direct exposure to DeFi has been seen as a gap in its offerings.
With this acquisition, Paxos gains a strong foothold in DeFi—enabling it to serve clients that need direct access to decentralized protocols while maintaining robust regulatory standards. It’s a significant pivot that combines Paxos’ trust-first model with Fordefi’s agile, developer-centric wallet infrastructure.
By bringing wallet services in-house, Paxos aims to control more of the crypto stack—offering regulated custody, asset issuance, and now, secure wallet solutions.
What This Means for the Crypto Ecosystem
The Paxos-Fordefi deal is more than a typical acquisition—it reflects the growing demand for institutional-grade DeFi tools. As traditional finance players explore decentralized opportunities, secure wallets are a critical gateway. Paxos now positions itself as a key player offering both the backend (compliance, custody) and the front end (wallet access) for future DeFi integration.
With regulatory clarity increasingly shaping market strategies, Paxos is signaling that regulated DeFi is the next frontier, and it intends to lead from the front.
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