Paxos, the blockchain infrastructure platform, announced it has acquired Fordefi, which is described as an institutional-grade custody and wallet technology provider. Businesses have reportedly relied on Paxos for custodial infrastructure as they enter the on-chain financial economy. Digital asset market adoption continues and customers require modular custody solutions.
This acquisition combines Paxos’ expertise in infrastructure and qualified custody “with Fordefi’s multi-party computation (MPC) wallet architecture, policy engine and deep decentralized finance integrations.”
Clients will be able to build upon a platform to issue stablecoins, tokenize assets and build complex payment flows “while maintaining the highest standards for security and compliance.”
Charles Cascarilla, CEO and co-Founder of Paxos, commented that they have built Paxos as a neutral, enterprise-grade platform “that ushers the world’s enterprises into the digital asset economy.”
They added that Fordefi has built a stack and customer base founded “on easy-to-use APIs and seamless web3 connectivity.”
Market participants require a regulated platform partner “that meets their range of complex custody needs.”
Together, Paxos and Fordefi provide customers “with a custody solution built upon advanced wallet technology and regulated, qualified custody.”
They’re eager to “welcome Fordefi to their team as we enter this new phase of growth.”
Founded in 2021 with offices in New York and Tel Aviv, Fordefi is described as the institutional-grade “multi-party computation (MPC) wallet platform built to solve the security, connectivity and policy challenges of decentralized finance.”
Fordefi will continue operating its “product independently and customers can continue using the product as usual.”
Over time, Paxos will integrate Fordefi’s technology and “operations into its infrastructure. The terms of the transaction were not disclosed.”
“Fordefi has built a wallet platform trusted by “nearly 300 institutions.”
Josh Schwartz, CEO of Fordefi said that joining Paxos allows them to bring their technology to an even broader audience “while maintaining our focus on security, usability and innovation.”
Together, they will offer enterprises the “unified custody and stablecoin infrastructure they need to deploy real-world digital asset use cases at scale.”
As noted in the update, Paxos is the regulated blockchain infrastructure and tokenization platform.
Its products are the foundation for a “new, open financial system that can operate faster and more efficiently.”
Currently, trillions of dollars are locked in “inefficient, outdated financial plumbing that is inaccessible to millions of people.”
Paxos is replatforming the financial system to enable assets “to instantaneously move anywhere in the world, at any time, in a trustworthy way.”
Paxos partners with global enterprises “to tokenize, custody and trade assets.”
Its blockchain solutions are used by PayPal, Interactive Brokers, Mastercard, Mercado Libre and Nubank.
Paxos is licensed to engage in virtual currency business activity “by the NYDFS and is the issuer of numerous regulated digital assets including PayPal USD (PYUSD), Pax Dollar (USDP) and Pax Gold (PAXG).”
Global Dollar (USDG) is issued by Paxos Digital Singapore, which is “a Major Payments Institution supervised by the Monetary Authority of Singapore.”
USDG is also issued by Paxos Issuance Europe under the supervision “of FIN FSA and in compliance with MiCA.”
USDG is available on Solana.
Prudentially regulated by FIN-FSA in Europe, the NYDFS in the US, the MAS in Singapore and FSRA in Abu Dhabi Global Market, Paxos is a fintech with $500 million+ reportedly raised from investors including “Oak HC/FT, Declaration Partners, Founders Fund and PayPal Ventures.”
