"Paxos helps companies like the payments giant PayPal and the neobank Nubank offer crypto trading to their customers. It's also a major player in stablecoins, or cryptocurrencies pegged to underlying assets like the U.S. dollar. Paxos issues, for example, PayPal's stablecoin, which has a market capitalization of more than $3.6 billion. Its acquisition of Fordefi, which specializes in crypto wallets designed for DeFi, signals that Paxos' customers are clamoring to expand into a realm of crypto that large companies once deemed untouchable."
"DeFi has long been considered a risky part of the crypto ecosystem. Users can receive high yield on, for example, decentralized lending networks, but those same protocols are also prone to hacks and exploits. Still, over the past year, large corporations have begun to dip their toes into the ecosystem. In September, the U.S. crypto exchange Coinbaselaunched a feature to let its customers borrow money from the DeFi lending network Morpho."
Paxos acquired Fordefi, a New York startup that helps customers store digital assets, for more than $100 million. Paxos provides crypto trading infrastructure to firms such as PayPal and Nubank and issues stablecoins, including PayPal's stablecoin with a market capitalization above $3.6 billion. Fordefi specializes in crypto wallets designed for DeFi, has about 40 employees, and serves roughly 300 clients. The acquisition responds to customer demand for DeFi access and custody capabilities. DeFi offers high yields but carries risks from hacks and exploits. Large corporations and banks have begun exploring DeFi use cases, including borrowing and tokenization of funds.
Read at Fortune
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