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Blockchain infrastructure firm Paxos has acquired institutional wallet provider Fordefi, the company announced Tuesday.
The acquisition combines Paxos' regulated custody platform with Fordefi's multi-party computation wallet technology and decentralized finance integrations, serving growing institutional demand for on-chain access.
Terms of the deal were not disclosed, but Fortune has reported, citing a Paxos spokesperson, that the acquisition was made for more than $100 million.
Founded in 2021, Fordefi has about 40 employees and serves around 300 clients. The startup was valued at $83 million in its last funding round, according to Pitchbook data.
Paxos, which issues PayPal's $3.6 billion PYUSD stablecoin and other regulated digital assets, provides crypto infrastructure for major institutions including PayPal, Mastercard and Nubank. The Fordefi deal signals that Paxos customers are seeking to expand into DeFi, a realm large companies once avoided.
"Market participants require a regulated platform partner that meets their range of complex custody needs," said Charles Cascarilla, Paxos CEO. "Together, Paxos and Fordefi provide customers with a world-class custody solution built upon advanced wallet technology and regulated, qualified custody."
Fordefi will continue operating independently while Paxos integrates its technology into the broader infrastructure. The company's MPC wallet architecture splits private keys across multiple parties to reduce security risks.
The deal marks Paxos' second acquisition this year, following its February purchase of Finnish stablecoin issuer Membrane Finance, which brought MiCA compliance for European operations.
