Paxos Takes a Big Step into DeFi with Fordefi Buyout

Paxos, a company known for helping big names like PayPal and Nubank offer crypto services, has just bought Fordefi, a startup that makes crypto wallets for DeFi. This deal is worth over $100 million, showing that Paxos is serious about getting into the DeFi game. DeFi, or decentralized finance, has always been seen as risky. It offers high returns but is also prone to hacks and scams. However, big companies are starting to take notice. Coinbase, a major crypto exchange, recently launched a feature that lets users borrow money from DeFi lending networks. Banks are even starting to tokenize money-market funds, which could be a big step towards more institutional involvement in DeFi. Paxos' CEO, Charles Cascarilla, mentioned that many of their customers are interested in accessing DeFi. He didn't name any specific customers, but the interest is clear. Fordefi, founded in 2021, has about 40 employees and serves around 300 clients. The startup was valued at $83 million in its last fundraising round. Fordefi will continue to operate independently for now, but Paxos plans to integrate Fordefi's technology into their own infrastructure. This acquisition is a big bet on DeFi. It shows that Paxos is ready to help its customers navigate this complex and risky part of the crypto world. It's also a sign that DeFi is becoming more mainstream, with big players starting to dip their toes in.