Stablecoin issuer Paxos acquires Fordefi, bolstering its crypto custody and wallet offering
Quick Take Fortune reported Paxos’ second acquisition of the year was for more than $100 million. Fordefi offers an institutional-grade multi-party computation (MPC) wallet solution that reportedly safeguards over $120 billion in monthly transaction volume.
Stablecoin issuer Paxos appears to be ramping up its M&A activity. On Tuesday, the firm said it has acquired digital asset storage platform Fordefi to bolster its crypto custody and wallet offerings.
Fortune reported the acquisition was for more than $100 million and that the terms were undisclosed. The startup, founded in 2021, has raised at least $28 million , as of its last publicly announced funding round in 2024.
The New York- and Tel Aviv-based Fordefi will continue operating independently while Paxos works to integrate its “wallet-as-a-service” tech and operations, according to the statement.
Fordefi offers an institutional-grade multi-party computation (MPC) wallet solution that reportedly safeguards over $120 billion in monthly transaction volume. Paxos noted that via the integrated companies, “Clients will be able to build upon a single, trusted platform to issue stablecoins, tokenize assets, and build complex payment flows.”
“[Fordefi provides] robust transaction processing, a market-leading policy engine, support for more than 90 chains and integrated compliance tools,” Paxos wrote on X. “Together we will accelerate the future of secure institutional on-chain finance.”
Paxos is one of the dominant stablecoin providers — often the company tapped by brands like Binance and PayPal when they want to launch bespoke and branded stablecoins. PayPal’s PYUSD is now the sixth-largest dollar-pegged stable with a $3.7 billion market cap, according to The Block’s data .
In August, Paxos Trust Company agreed to pay a $26.5 million fine to settle a years-long legal dispute with the New York State Department of Financial Services over the 2018 launch of Binance USD, a.k.a. BUSD.
Earlier this year, Paxos acquired Finland-based stablecoin issuer Membrane Finance, giving it access to the European market under the MiCA compliance regime.
Both deals come amid a flurry of crypto M&A activity, particularly in the stablecoin sector, as firms like Coinbase and Stripe look to gain a foothold in one of the most promising blockchain segments.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Bitcoin wavers under $88K as traders brace for $14B BTC options expiry

The likelihood of a bitcoin short squeeze to $90,000 increases as funding rates turn negative
After dropping from $106,000 to $80,600, Bitcoin has stabilized and started to rebound, sparking discussions in the market about whether a local bottom has been reached. While whales and retail investors continue to sell, mid-sized holders are accumulating. Negative funding rates suggest a potential short squeeze. Summary generated by Mars AI. The accuracy and completeness of this summary are still being iteratively improved by the Mars AI model.

TGE tonight: A quick look at the ecosystem projects mentioned by Monad on the first day
Including prediction markets, DeFi, and blockchain games.

In-depth Conversation with Sequoia Capital Partner Shaun: Why Does Musk Always Defeat His Rivals?
Shaun not only led the controversial 2019 investment in SpaceX, but is also one of the few investors who truly understands Elon Musk's operational system.

