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).
DeFi sees wider rollout across exchanges
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.
In June, Kraken expanded its onchain efforts by partnering with Solana-based DeFi Development Corp, using its xStocks platform to bring Kraken shares onchain. The deal was built on a May partnership that enabled Kraken to offer tokenized US equities to users in select non-US markets.
By September, Coinbase integrated the Morpho lending protocol directly into its app, allowing users to lend USDC without needing to navigate separate DeFi platforms or external wallets. The exchange said users could earn up to 10.8% on their USDC through the feature.
In October, Crypto.com followed the trend by adding Morpho to its native Cronos blockchain, letting users earn stablecoin yields on wrapped Bitcoin (BTC) and Ether (ETH).
DeFi protocols currently hold about $116 billion in total value locked, according to DefiLlama data. On Oct. 9, one day before the largest liquidation event in crypto history, TVL was hovering around $170 billion.
