Regulated blockchain infrastructure provider Paxos has acquired Fordefi, a leading multi-party computation (MPC) wallet solutions company, marking a significant consolidation in the institutional crypto custody space. The acquisition positions Paxos to offer end-to-end infrastructure for stablecoins, tokenization, and enterprise-grade digital asset management as institutional adoption accelerates.
Paxos, a New York-based regulated blockchain infrastructure company, has announced the acquisition of Fordefi, strengthening its position in the rapidly evolving institutional digital asset ecosystem. The strategic move brings Fordefi's advanced multi-party computation (MPC) wallet technology under Paxos' umbrella, creating a comprehensive infrastructure platform for enterprises navigating the blockchain economy.
The acquisition significantly enhances Paxos' capabilities across multiple fronts. Fordefi's MPC technology provides institutional-grade security for digital asset custody without single points of failure, a critical requirement for regulated financial institutions entering the crypto space. By integrating this technology, Paxos can now offer a complete stack spanning custody, stablecoin infrastructure, and tokenization services—all under a regulated framework.
This consolidation comes at a pivotal moment for the cryptocurrency industry. As traditional financial institutions increasingly embrace blockchain technology, the demand for secure, compliant infrastructure has skyrocketed. Stablecoins, which Paxos has extensive experience issuing through its USDP product and partnerships with PayPal, are becoming integral to global payment systems. Meanwhile, real-world asset tokenization is emerging as a multi-trillion dollar opportunity.
Fordefi's MPC wallet infrastructure represents a technological evolution beyond traditional custody solutions. Unlike single-key wallets that create vulnerability points, MPC technology distributes cryptographic key generation and signing across multiple parties, dramatically reducing security risks while maintaining operational efficiency. For institutional clients managing substantial digital asset portfolios, this architecture is increasingly becoming the gold standard.
The deal reflects broader industry trends toward vertical integration among crypto infrastructure providers. Companies that can offer comprehensive, regulated solutions—from custody and wallets to stablecoin issuance and tokenization platforms—are positioning themselves as essential partners for traditional finance's digital transformation.
For Paxos, which already serves major clients including PayPal and has regulatory licenses in multiple jurisdictions, the Fordefi acquisition eliminates the need for institutional customers to cobble together services from multiple providers. This one-stop-shop approach could prove decisive as banks, asset managers, and corporations accelerate their blockchain initiatives in 2025 and beyond.
Financial terms of the acquisition were not disclosed, though both companies indicated the integration would proceed immediately to meet growing market demand.