Blockchain infrastructure unicorn Paxos acquires Israeli startup Fordefi. The companies did not disclose financial details, but Calcalist has learned that the purchase price exceeds $100 million.
Fordefi, founded in 2021 by Josh Schwartz (CEO), Dima Kogan (CTO) and Michael Volfman (VP R&D) and operating in Tel Aviv and New York, develops security infrastructures and institutional wallets for digital asset management. The company serves nearly 300 financial institutions, with monthly business volumes exceeding $120 billion. Fordefi employs approximately 50 people, including approximately 35 in Israel, and all employees will remain with the company following the acquisition.
“All of our R&D activities in Tel Aviv will remain at the heart of Paxos, and we will recruit many more employees and build new products together,” said Dima Kogan, CTO and co-founder of Fordefi.
Fordefi has raised $28 million to date, $18 million in its seed round and another $10 million in a seed extension, from investors including Lightspeed, Electric Capital, Castle Island, Pantera, Microsoft and PayPal. The startup has developed digital asset management and security technology for institutions, combining advanced security capabilities with broad connectivity to blockchain-based business applications and sophisticated permissions management tools for organizations.
“In blockchain security, there are many players in different segments,” Kogan told Calcalist. “In our world, there are many institutional players and we have positioned ourselves as a company providing solutions for decentralized trading. This is how we reached 300 customers, because we offer the safest solution with secure connectivity for blockchain-based trading. Founders, employees and investors all make profits and come away very satisfied.”
He added: “Paxos provides the regulatory framework that allows businesses to use blockchain, and we are bringing a technology boost. Together, we will offer solutions to many businesses looking for just that. Our business operations will continue as usual, and Paxos views us and our customers as strategically important.”
Paxos, which last raised capital in 2021 at a valuation of $2.4 billion, said it will maintain and expand its development activities in Israel as part of its strategy to build the critical infrastructure layer that will allow organizations to hold digital assets, issue stablecoins and process blockchain-based payments securely and under strict regulatory oversight.
Charles Cascarilla, co-founder and CEO of Paxos, said: “We built Paxos as a neutral, regulated platform for the world’s largest organizations joining the digital economy. Fordefi has developed an impressive technology and a broad customer base through convenient APIs and advanced Web3 capabilities. The market now needs a regulated platform that provides a comprehensive solution for the wide range of digital asset needs. Together, we bring our customers a unified, premier solution. plan to the world.
