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Paxos, the regulated blockchain infrastructure platform, has announced the acquisition of Fordefi, an institutional-grade custody and wallet technology provider. The move represents a strategic consolidation in the digital asset infrastructure space, aiming to merge Paxos' regulatory framework with Fordefi’s multi-party computation (MPC) technology and decentralised finance (DeFi) connectivity.
The acquisition comes as institutional adoption of digital assets accelerates, driving demand for custody solutions that are both secure and modular. By integrating Fordefi’s technology, Paxos intends to offer a unified platform where clients can issue stablecoins, tokenize assets, and manage complex payment flows without compromising on security or compliance standards.
“We've built Paxos as a neutral, enterprise-grade platform that ushers the world's leading enterprises into the digital asset economy,” said Charles Cascarilla, CEO and co-Founder of Paxos. “Fordefi has built an impressive stack and customer base founded on easy-to-use APIs and seamless web3 connectivity. Market participants require a regulated platform partner that meets their range of complex custody needs. Together, Paxos and Fordefi provide customers with a world-class custody solution built upon advanced wallet technology and regulated, qualified custody. We're excited to welcome Fordefi to our team as we enter this new phase of growth.”
Founded in 2021, Fordefi has established itself by addressing the specific security and policy challenges of DeFi operations. The company currently facilitates over $120 billion in monthly transaction volume for nearly 300 institutional clients.
According to the announcement, Fordefi will initially continue to operate its product independently, ensuring continuity for existing customers. Over time, Paxos plans to fully integrate Fordefi’s technology and operations into its broader infrastructure. The financial terms of the transaction were not disclosed.
“Fordefi has built a best-in-class wallet platform trusted by nearly 300 institutions,” said Josh Schwartz, CEO of Fordefi. “Joining Paxos allows us to bring our technology to an even broader audience while maintaining our focus on security, usability and innovation. Together, we will offer enterprises the unified custody and stablecoin infrastructure they need to deploy real-world digital asset use cases at scale.”
The deal underscores a growing trend of vertical integration within the crypto infrastructure sector, as regulated entities seek to enhance their technological capabilities to support complex, on-chain financial products.
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