Paxos has moved to deepen its role in the on-chain financial landscape by acquiring Fordefi, a company known for its institutional-grade custody and wallet technology. The regulated blockchain infrastructure provider plans to merge its compliance-focused framework with Fordefi’s multi-party computation wallet architecture, a combination expected to significantly enhance the security and scalability of its offerings.
The move is being positioned as a key step in strengthening Paxos’ overall custody infrastructure. By integrating Fordefi’s advanced wallet technology and established decentralized finance connections, Paxos aims to offer clients a more unified platform for activities such as stablecoin issuance, asset tokenization, and sophisticated payment solutions. The company has indicated that this combined system is intended to support enterprise-level adoption of blockchain services while maintaining high regulatory and security standards.
Leaders Highlight Strategic Benefits and Technological Alignment
Paxos CEO and co-founder Charles Cascarilla conveyed strong support for the acquisition, noting that Fordefi brings an impressive technology foundation and a strong customer portfolio. He suggested that the integration aligns with the needs of institutions that require secure, compliant custody solutions as they increase their involvement in digital asset markets. Cascarilla also underscored the value of pairing Fordefi’s technological strengths with Paxos’ experience operating within regulated frameworks.
Fordefi, founded in 2021 with operations in New York and Tel Aviv, is recognized for offering wallet infrastructure that addresses core challenges in decentralized finance, including security, connectivity, and policy governance. CEO Josh Schwartz explained that aligning with Paxos would allow Fordefi to broaden its market reach while continuing to prioritize innovation and high security standards. He emphasized that the collaboration supports Fordefi’s long-term mission of safeguarding institutional on-chain activity.
With Paxos backing, Fordefi will continue to operate its product and expand access to on-chain finance for institutions. investing in new features and go-to-market growth.
Over time, we will integrate Fordefi’s technology into the Paxos platform so institutions can access both…
— Paxos (@Paxos) November 25, 2025
Although Fordefi will continue operating its products independently for the time being, Paxos has indicated that a gradual integration of Fordefi’s technology is expected. While specific financial terms of the acquisition have not been disclosed, both companies appear committed to creating a consolidated infrastructure layer designed to help enterprises deploy digital asset use cases at scale.
Broader Impact on the Digital Asset Ecosystem
Paxos is widely known for its regulated tokenization platform and partnerships with global enterprises involved in asset custody and trading. The company holds licenses from regulatory bodies, including the New York Department of Financial Services, the Monetary Authority of Singapore, and Finland’s Financial Supervisory Authority. Its regulatory prominence has positioned it as a trusted provider of blockchain solutions for institutions.
Fordefi, established by founders Dima Kogan, Josh Schwartz, and Michael Volfman, has gained recognition in the market for facilitating secure on-chain operations. The company manages more than $120 billion in monthly transaction volume and supports both centralized and decentralized workflows through its MPC wallet infrastructure. Its system offers enhanced governance and policy controls, making it a strong fit for institutional clients requiring rigorous security and operational oversight.
By joining forces, Paxos and Fordefi aim to deliver a comprehensive, highly secure infrastructure layer for the evolving on-chain economy. The strengthened platform positions Paxos to support growing institutional interest in tokenized assets, stablecoins, and blockchain-based financial operations while meeting the compliance demands of an increasingly regulated market.