Stablecoin issuer Paxos appears to be ramping up its M&A activity. On Tuesday, the firm said it has acquired digital asset storage platform Fordefi to bolster its crypto custody and wallet offerings.
Fortune reported the acquisition was for more than $100 million and that the terms were undisclosed. The startup, founded in 2021, has raised at least $28 million, as of its last publicly announced funding round in 2024.
The New York- and Tel Aviv-based Fordefi will continue operating independently while Paxos works to integrate its “wallet-as-a-service” tech and operations, according to the statement.
Fordefi offers an institutional-grade multi-party computation (MPC) wallet solution that reportedly safeguards over $120 billion in monthly transaction volume. Paxos noted that via the integrated companies, “Clients will be able to build upon a single, trusted platform to issue stablecoins, tokenize assets, and build complex payment flows.”
“[Fordefi provides] robust transaction processing, a market-leading policy engine, support for more than 90 chains and integrated compliance tools,” Paxos wrote on X. “Together we will accelerate the future of secure institutional on-chain finance.”
Paxos is one of the dominant stablecoin providers — often the company tapped by brands like Binance and PayPal when they want to launch bespoke and branded stablecoins. PayPal’s PYUSD is now the sixth-largest dollar-pegged stable with a $3.7 billion market cap, according to The Block’s data.
In August, Paxos Trust Company agreed to pay a $26.5 million fine to settle a years-long legal dispute with the New York State Department of Financial Services over the 2018 launch of Binance USD, a.k.a. BUSD.
Earlier this year, Paxos acquired Finland-based stablecoin issuer Membrane Finance, giving it access to the European market under the MiCA compliance regime.
Both deals come amid a flurry of crypto M&A activity, particularly in the stablecoin sector, as firms like Coinbase and Stripe look to gain a foothold in one of the most promising blockchain segments.
© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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