Paxos Acquires Fordefi, Enhancing Its Custody and Wallet Tools for Institutions in Digital Asset Space
Institutional demand for robust custody and wallet solutions has reached unprecedented heights, prompting Paxos to take decisive action. The company has officially announced its acquisition of Fordefi, a prominent player in the realm of institutional crypto wallet and custody technology. This strategic move significantly broadens Paxos’s capabilities in the on-chain economy, offering a comprehensive suite of tools for businesses navigating the digital asset landscape.
Fordefi is celebrated for its innovative multi-party computation wallet system, which enables secure transaction approvals and seamless integration for firms engaged in decentralized finance (DeFi). By acquiring Fordefi, Paxos aims to amalgamate this advanced technology with its existing regulated custody platform. The anticipated outcome is a cohesive system that facilitates stablecoin issuance, asset tokenization, and sophisticated transaction management tailored to institutional needs.
Paxos is acquiring @FordefiHQ, the leading custody and wallet technology platform for on-chain operations. pic.twitter.com/t7aFVhyflu
— Paxos (@Paxos) November 25, 2025
Expanding Custody and Wallet Capabilities
Paxos has established itself as a trusted provider of regulated digital asset services over the years. The acquisition of Fordefi enhances its position in institutional markets by introducing advanced wallet controls. These features encompass stringent security checks and customizable policy settings, empowering institutions to manage transactions and permissions while mitigating operational risks.
Moreover, the incorporation of Fordefi’s technology enables Paxos to cater to enterprises with diverse asset requirements. Many organizations seek a unified platform that facilitates tokenization, payments, and stablecoin services all in one place. This acquisition is poised to strengthen that offering, as Paxos plans to leverage Fordefi’s software to create a holistic platform supporting a variety of digital asset operations. For the time being, Fordefi will continue to operate its existing product, ensuring that clients experience a seamless transition without immediate changes.
Heightened Enterprise Interest in DeFi Connectivity
As businesses increasingly explore decentralized finance, they express a desire for direct access to yield-generating tools, tokenized assets, and on-chain transactions. This shift has prompted several major companies to roll out new DeFi services aimed at enhancing operational flexibility and promoting innovation. For instance, some firms have already introduced options for users to engage with lending pools, while others are examining tokenized equity plans.
The crypto landscape has seen a growing number of established institutions embrace on-chain connectivity. Various exchanges have intertwined their platforms with DeFi lending systems, while some have initiated support for wrapped assets, catering to users who seek yield opportunities within their ecosystems. Such developments underscore the growing acceptance of DeFi as an integrated component of modern digital asset services.
The technology provided by Fordefi aligns perfectly with this trend. With its focus on facilitating DeFi integrations, the platform offers institutions an accessible route to interact with decentralized tools. As a result, the acquisition holds considerable value for Paxos, as it deepens the company’s connections to enterprise-level DeFi activities.
Related Reading: Paxos Proposes USDH Stablecoin with Revenue Sharing to Back Hyperliquid Growth
Market Context and Industry Growth
The broader DeFi market continues to show resilience, with data indicating a steady expansion despite fluctuating market conditions. Current figures suggest that the total value locked across major DeFi protocols is nearing the hundred billion dollar mark, a reflection of the enduring institutional interest in on-chain activities.
For many organizations, the involvement of trusted custody partners is critical as they venture into DeFi-related tools. Paxos has historically served this role through its regulated platforms, aiming to meet the growing enterprise demand by integrating Fordefi’s technology into its existing offerings. This acquisition strategically positions Paxos to provide custody, wallet, and stablecoin services within a single, controlled environment, facilitating a wider reach in the global market.
Fordefi has built a robust client base that includes hundreds of institutions utilizing its tools for secure wallet activities. Many of these clients depend on Fordefi’s policy engine for managing internal transaction approvals. As Paxos transitions through this integration phase, it plans to support existing users while developing new features aimed at long-term growth.
This acquisition marks a significant step forward in the evolution of institutional custody and wallet infrastructure. With the aim of delivering a comprehensive, all-in-one system for secure digital asset operations, Paxos is positioned to support the next wave of enterprise adoption in the burgeoning world of digital finance.
