Paxos Purchases Fordefi to Enhance Stablecoin and Tokenization Framework

Paxos Acquires Fordefi: Blockchain infrastructure company Paxos has acquired Fordefi, a New York-based startup specializing in institutional crypto wallet and custody technology, for over $100 million. This acquisition aims to integrate Fordefi's multi-party computation wallet technology with Paxos' regulated custody infrastructure.

Fordefi's Technology and Operations: Founded in 2021, Fordefi developed one of the first institutional MPC wallets for decentralized finance (DeFi), allowing companies to manage onchain transactions. The startup will continue to operate independently while Paxos plans to gradually integrate its technology.

Paxos' Services and Licensing: Paxos is a regulated blockchain company providing custody, tokenization, and stablecoin services to major enterprises like PayPal and Mastercard. It is licensed in the U.S., Europe, and Singapore, and issues several stablecoins, including PayPal USD and Pax Dollar.

DeFi Integration Trends: The crypto industry is increasingly incorporating DeFi protocols into products, with companies like Kraken and Coinbase enhancing user access to onchain lending and tokenized assets. As of October, DeFi protocols hold approximately $116 billion in total value locked, despite recent market fluctuations.