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- Paxos expands its reach in DeFi with a major acquisition.
- The company strengthens its position in global stablecoin and wallet services.
- Large firms show growing interest in decentralized finance tools.
According to the report, Paxos, a long-standing stablecoin and blockchain technology firm, continues to widen its presence in decentralized finance. The company announced on Tuesday that it acquired Fordefi, a New York startup that offers secure storage tools for digital assets.
The deal exceeded one hundred million dollars, based on information from a company spokesperson. The exact terms remain undisclosed, but the size of the transaction signals a major step for both firms. Paxos already supports major companies, including PayPal and Nubank.
It enables these platforms to provide crypto trading to millions of users. The firm also plays a strong role in the stablecoin space. It issues the stablecoin used by PayPal, which holds a market value above three point six billion dollars. This latest acquisition shows that Paxos now aims to bring advanced DeFi features to customers that once avoided the sector.
Coinbase and Banks Explore Decentralized Lending Tools
DeFi has carried a reputation for risk for many years. Users can earn strong returns through decentralized lending platforms. They also face threats from vulnerabilities and attacks that target these systems. Despite this, large companies have begun to move toward DeFi services. This shift gained strength over the past year as firms searched for broader digital asset tools.
In September, Coinbase introduced a service that lets its customers borrow funds from a decentralized lending network called Morpho. At the same time, banks started to explore blockchain wrappers for money-market funds. These efforts signal that institutions want early exposure to decentralized markets and want the stability that tokenized financial products can offer.
Paxos reports that many of its partners want access to DeFi. They want secure tools, reliable wallet services, and stronger control over digital transactions. The company sees this trend as a long-term change in the market. It expects more institutions to enter the space as security tools improve and regulatory frameworks solidify.
Fordefi Growth Highlights Its Role in DeFi Wallet Technology
Fordefi formed in 2021 and built a team of about forty employees. It serves around three hundred clients and focuses on wallet technology for decentralized finance. Pitchbook data shows that Fordefi held a valuation of eighty-three million dollars during its most recent funding round.
The startup will continue to operate on its own for now. Paxos, however, intends to merge Fordefi’s wallet technology into its wider system as part of a staged integration plan. This deal marks the second acquisition by Paxos in one year.
The company completed the purchase of Membrane Finance in February. That move made Paxos compliant with the European Union’s MiCA rules. The new acquisition now strengthens Paxos’s position as a global player in stablecoin services and decentralized finance infrastructure.
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