Paxos Acquires Fordefi To Power Stablecoin, Tokenization...

The addition of Fordefi’s MPC wallet infrastructure broadens Paxos’ regulated capabilities for custody, tokenization and institutional onchain operations.

Blockchain infrastructure company Paxos has acquired Fordefi, a New York-based institutional crypto wallet and custody technology startup.

Paxos said the deal brings its regulated custody infrastructure together with Fordefi’s multi-party computation (MPC) wallet technology and decentralized finance integrations, providing institutions with a single platform to issue stablecoins, tokenize assets, and manage onchain transactions.

While transaction terms were not disclosed in today’s announcement, a Paxos spokesperson told Fortune the deal was worth more than $100 million.

Founded in 2021, Fordefi developed one of the first institutional MPC wallets built for DeFi, incorporating governance features that enable companies to authorize and sign onchain transactions.

The startup will continue to operate independently for now, with Paxos planning to integrate its technology into its broader infrastructure over time.

Paxos is a regulated blockchain infrastructure company that provides custody, tokenization and stablecoin services for major enterprises, including PayPal, Mastercard and Interactive Brokers.

The company is licensed in the United States, Europe and Singapore, and issues several stablecoins, including PayPal USD (PYUSD), Pax Dollar (USDP), Pax Gold (PAXG), and Global Dollar (USDG).

Related: UAE’s new financial law pulls DeFi and Web3 into regulatory scope

Across the crypto industry, companies are increasingly embedding DeFi protocols into their products, offering users direct access to onchain lending, tokenized assets and yield tools.

Source: CoinTelegraph