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New York, November 26, 2025:
Paxos Trust Company has finalized its acquisition of leading institutional self-custody wallet provider Fordefi for more than $120 million.
Integration testing for PayPal USD (PYUSD) into Fordefi’s MPC wallet infrastructure began today, coinciding with a 21% single-day surge in PYUSD trading volume to $85 million.
The deal marks Paxos’ second major acquisition of 2025 and transforms the regulated stablecoin issuer into a full-stack crypto infrastructure giant, combining issuance, qualified custody, and now user-friendly self-custody wallets.
Key Takeaways
- Paxos is now a genuine full-stack player: stablecoin issuance + regulated custody + institutional self-custody wallets.
- PYUSD volume and adoption are entering a new growth phase, with 21% daily gains and live integration testing starting today.
- Self-custody is becoming table-stakes amid global regulatory pressure—Fordefi’s MPC tech gives Paxos a decisive compliance-friendly edge.
- This is the second major Paxos acquisition in 2025, confirming wallet and licensing technology as the hottest M&A segments in crypto infrastructure.
- Analysts forecast PYUSD market cap could challenge top-5 status and user count could 2× within 12–18 months.
The Deal Breakdown: From Talks to Finalization
Sources close to the transaction say the agreement was signed late Monday, November 25, valuing Fordefi at slightly above the $100 million+ range first reported last week.
Fordefi, which secures over $120 billion in monthly transactions for more than 300 institutional clients, will continue operating independently while its technology stack is progressively merged into Paxos’ NYDFS-regulated platform.
The acquisition follows Paxos’ February purchase of European fintech Membrane Finance to secure a MiCA license and underscores a clear strategy: build an end-to-end regulated bridge between traditional finance and decentralized protocols.
PYUSD's Meteoric Rise and Volume Boom
PYUSD, the sixth-largest USD-pegged stablecoin with a $3.74 billion market cap, recorded $85 million in 24-hour volume on November 25, its strongest single-day performance in months.
Large transfers exceeding 300 million PYUSD tokens between Paxos-controlled addresses and unidentified wallets in recent days had already fueled speculation of an imminent catalyst.
Industry analysts attribute the spike to growing institutional inflows and anticipation of today’s wallet integration rollout.
Why This Matters: Overcoming Adoption Barriers in a Regulated World
For years, the biggest hurdle to stablecoin mass adoption has been the “wallet problem”, getting non-crypto-native users to safely store and use digital dollars.
By pairing PYUSD issuance with Fordefi’s institutional-grade yet intuitive MPC wallets, Paxos eliminates that friction while satisfying regulators’ increasing demands for provable self-custody options.
The move directly challenges Circle’s USDC ecosystem, which still relies heavily on third-party wallet partners, and positions Paxos as the preferred infrastructure layer for enterprises entering tokenized payments and DeFi.
Potential Impacts: Doubling Down on Growth
Market participants project the Fordefi integration could accelerate PYUSD’s user base from current levels toward PayPal’s active 400+ million accounts, with realistic near-term targets of 50 million engaged PYUSD holders.
Seamless on-ramps, think “send PYUSD as easily as Venmo, but with DeFi yields”, are now within reach.
Partners including Mastercard, Nubank, and Interactive Brokers are expected to leverage the upgraded stack for tokenized deposit and real-world asset (RWA) initiatives.
Conclusion
The Paxos-Fordefi marriage is more than a $120 million transaction, it’s the clearest signal yet that the next phase of stablecoin wars will be fought on wallet experience and regulatory resilience.
With integration tests live today and PayPal’s global reach behind it, PYUSD is no longer just another stablecoin, it’s becoming the on-ramp for mainstream on-chain finance.
Read Next:
- How to Buy Euro Stablecoins in 2025
- Stablecoin Tax Guide 2025: Reporting and Tools for Compliance
- The Future of Stablecoins: What's Next in 2026 and Beyond
FAQs:
1. What exactly did Paxos acquire for $120M?
Paxos acquired Fordefi, an institutional MPC (multi-party computation) wallet provider that secures $120B+ in monthly transactions and serves over 300 funds, exchanges, and market makers.
2. When does PYUSD become available in Fordefi wallets?
Integration testing began November 26, 2025. Full rollout to existing Fordefi clients and eventual retail-facing products is expected in Q1 2026.
3. Will this make PYUSD bigger than USDC?
Not immediately, USDC still leads with ~$55B market cap, but the deal gives PYUSD the most seamless PayPal-to-DeFi pipeline in the industry and a realistic path to 50M+ active users.
4. Is Fordefi shutting down or staying independent?
Fordefi will continue serving its existing institutional client base independently while its technology is progressively integrated into Paxos’ regulated offerings.
5. Why is everyone suddenly buying crypto wallet companies?
Regulators worldwide are pushing for provable self-custody and audited on-chain controls. Acquiring battle-tested wallet tech is the fastest way for issuers like Paxos to future-proof their platforms and capture the institutional and retail wave at the same time.
