Share this article
Paxos Acquires Crypto Wallet Startup Fordefi to Expand Custody Services
The move aims to position Paxos to serve growing institutional demand for on-chain asset issuance and stablecoin payments.
Updated Nov 25, 2025, 3:48 p.m. Published Nov 25, 2025, 3:22 p.m.
Make us preferred on Google
What to know:
- Paxos, the company behind PayPal's stablecoin, has acquired Fordefi, a crypto wallet provider startup, to bolster its custody services as institutional adoption of digital assets grows.
- Fortune reported the acquisition price was over $100 million.
- Crypto wallet providers offer a crucial plumbing to manage digital assets including stablecoins, and are increasingly becoming targets for acquisitions.
Digital asset infrastructure firm Paxos said Tuesday it has acquired Fordefi, a wallet provider startup, a move aimed at strengthening its custody offering as institutional adoption accelerates.
The deal brings Fordefi’s multi-party computation (MPC) wallet architecture, policy controls and decentralized finance (DeFi) integrations under the Paxos umbrella. The companies did not disclose the terms of the deal, but Fortune reported the price tag was more than $100 million.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Paxos serves as a regulated custodian for major financial institutions, including PayPal and Mastercard. The firm issues PayPal's $3.7 billion U.S. dollar stablecoin PYUSD, and is the leading entity of the consortium behind the $975 million Global Dollar (USDG) stablecoin.
Crypto wallet providers have increasingly been at the forefront of acquisitions as financial firms look to expand digital services. They are a crucial piece of infrastructure to hold, manage and transfer blockchain-based assets including crypto, stablecoins and tokenized assets. For example, fintech giant Stripe acquired wallet provider Privy, while Ripple purchased Palisade earlier this year.
By acquiring Fordefi, Paxos said it aims to offer a more flexible custody infrastructure tailored to clients issuing stablecoins, tokenizing assets or building crypto payment systems.
"Enterprises want a regulated partner they can trust with complex wallet and custody needs," Paxos CEO Charles Cascarilla said in a statement. "Fordefi brings proven technology that we’ll integrate into our platform to power the next wave of on-chain use cases."
Founded in 2021, Fordefi provides wallet infrastructure used by nearly 300 institutional clients. Its system relies on MPC, a cryptographic method that splits transaction approvals across multiple devices or parties, aiming to reduce the risks of private key compromise. Paxos was an investor in the startup's $10 million fundraising round last year.
Fordefi will continue operating independently for now, with its team and platform remaining active as Paxos begins integration.
AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.
More For You
Specialized AI detects 92% of real-world DeFi exploits
New research claims specialized AI dramatically outperforms general-purpose models at detecting exploited DeFi vulnerabilities.
What to know:
- A purpose-built AI security agent detected vulnerabilities in 92% of 90 exploited DeFi contracts ($96.8 million in exploit value), compared with 34% and $7.5 million for a baseline GPT-5.1-based coding agent running on the same underlying model.
- The gap came from domain-specific security methodology layered on top of the model, not differences in core AI capability, according to the report.
- The findings come as prior research from Anthropic and OpenAI shows AI agents can execute end-to-end smart contract exploits at low cost, accelerating concerns that offensive AI capabilities are scaling faster than defensive adoption.
Top Stories
