Paxos has acquired institutional wallet provider Fordefi, combining its regulated custody platform with Fordefi’s multi‑party computation (MPC) wallet technology and decentralized finance (DeFi) integrations. The deal, terms of which were not disclosed, is aimed at offering institutions a single platform to issue stablecoins, tokenize assets, and manage on‑chain transactions with enterprise security and compliance.
Paxos Acquires Fordefi to Bolster Institutional Wallet Infrastructure
Paxos said integrating Fordefi’s MPC wallet architecture, policy engine, and DeFi connectivity will enhance its qualified custody services. According to the companies, clients will be able to use one platform to launch stablecoins, tokenize real‑world and digital assets, and build complex payment flows while maintaining regulated controls.
Fordefi provides an institutional‑grade MPC wallet solution that reportedly safeguards more than $120 billion in monthly transaction volume. MPC technology distributes key management across multiple parties, reducing single‑point‑of‑failure risks for organizations conducting high‑value on‑chain operations.
Strategic Context and Recent Deals
The Fordefi acquisition is Paxos’s second in the past year. In February, the blockchain infrastructure firm closed its purchase of Membrane Finance, a Finland‑based stablecoin issuer. Together, the moves indicate Paxos is expanding beyond token issuance toward full‑spectrum infrastructure for regulated institutions, spanning both traditional stablecoin rails and emerging DeFi channels.
Paxos issues several regulated digital assets, including PayPal USD (PYUSD), Pax Dollar (USDP), and Pax Gold (PAXG). The company also recently debuted Paxos Labs to help partners embed products such as stablecoins, yield strategies, and tokenized assets into their platforms.
USDG Stablecoin Expands via LayerZero’s OFT Standard
In a related product update, Paxos said its regulated USDG stablecoin is being extended across multiple blockchains using LayerZero’s Omnichain Fungible Token (OFT) standard. The bridged token will allow USDG to move to networks where Paxos does not yet offer native issuance.
The initial rollout will start with Hyperliquid—a network Paxos cited as having more than $4.5 billion in total value locked—and will expand to Plume and Aptos. Paxos said USDG is currently available on Solana, Ethereum, and other networks including InK and X Layer. The company highlighted use cases such as yield‑aligned trading, new lending markets, modular DeFi, tokenized yields, and enterprise‑grade stablecoin rails, alongside direct integration of stablecoin liquidity into applications and protocols.
Why It Matters
By bringing regulated custody and MPC wallet infrastructure under one roof and extending USDG across chains, Paxos is positioning itself as a comprehensive provider of compliant, institution‑ready on‑chain services. The combined offering targets enterprises seeking to issue stablecoins, tokenize assets, and execute DeFi strategies while adhering to stringent security and regulatory standards.