## Paxos Officially Acquires Fordefi: A Strategic Milestone in Regulated DeFi Adoption

In a context where financial institutions are increasingly seeking healthier approaches to decentralized solutions, Paxos has completed its acquisition of Fordefi with a valuation exceeding $100 million. This move is not merely a typical business transaction but a testament to the trend of institutionalizing DeFi in the modern cryptocurrency economy.

### Fordefi Brings Advanced MPC Wallet Technology

Fordefi, a specialized cryptocurrency wallet platform for institutional clients, has built trust among approximately 300 customers through its multi-party computation (MPC) technology. This technology allows organizations to securely custody cryptocurrencies while maintaining the ability to interact directly with DeFi protocols. After the merger, this proprietary wallet solution will be integrated into Paxos’s custody infrastructure, while Fordefi continues to operate independently.

### Paxos Expands Beyond Stablecoins

Founded in 2012 and based in New York, and regulated by the New York State Department of Financial Services, Paxos has demonstrated adaptability in the rapidly changing crypto market. In addition to issuing PYUSD PayPal USD ($3.68B market cap, -0.01% 24h volatility, $4.70K daily trading volume), Paxos has launched USDG to compete directly with USDT, and USDH for the Hyperliquid platform, with a planned launch in 2025.

The Fordefi acquisition marks Paxos’s second merger within 12 months, after acquiring Membrane Finance – a Finnish stablecoin issuer. These successive steps show that Paxos is not only focused on developing stablecoins but is also building a comprehensive ecosystem for institutional clients – from custody, to DeFi, to tightly regulated crypto services.

### Growing Demand from Institutional Clients

Interest from organizations in digital assets and decentralized lending opportunities has increased significantly in recent years, despite ongoing risks such as hacking attacks. Paxos recognizes this opportunity and has decided to strengthen its platform through robust technological factors. Paxos leadership, including CEO and co-founder Charles Cascarilla, considers Fordefi one of the companies capable of providing a leading global solution combining advanced wallets with managed custody services that are compliant with regulations.

### The DeFi Institutionalization Trend Will Continue

With the development of blockchain technology and market maturity, transactions like Paxos-Fordefi are just the beginning. Traditional financial institutions are gradually recognizing the potential of decentralized platforms, as long as they operate under appropriate legal oversight. Paxos, with its reputation and trust from regulatory agencies, has positioned itself as a bridge between traditional finance and the rapidly evolving world of cryptocurrency.