Fordefi

# Fordefi: Institutional-Grade Digital Asset Security for DeFi

High-Level Overview

Fordefi is a financial technology company that provides institutional-grade custody and security infrastructure for decentralized finance operations.[2] The company builds a multi-party computation (MPC) wallet platform and web3 gateway that enables institutions to self-custody private keys, connect to decentralized applications, and manage digital assets with enhanced security policies.[1] Fordefi serves funds, trading firms, market makers, and Web3 companies—solving the critical problem of secure digital asset management in an ecosystem historically plagued by hacks, phishing schemes, and fraud.[3]

The company has achieved significant traction, with nearly 300 institutional customers and safeguarding more than $120 billion in monthly transaction volume.[2] In a major validation of its technology and market position, Paxos acquired Fordefi to integrate its custody infrastructure into Paxos's broader blockchain infrastructure platform, though Fordefi continues operating its product independently.[2]

Origin Story

Fordefi was founded in 2021 by Dima Kogan, Josh Schwartz, and Michael Volfman, with headquarters in New York and additional offices in Tel Aviv.[2] The company emerged from a clear market need: as decentralized finance rapidly evolved, institutions faced unprecedented security risks because legacy custody solutions were not designed for the complexities of DeFi operations.[3] The founders recognized that the nascency of decentralized applications created knowledge gaps and opportunities for malicious activity, leading to high-profile hacks and scams.[3]

Rather than building another traditional custody solution, the team developed the first institutional MPC wallet platform specifically engineered for DeFi, collaborating with industry-leading trading firms, funds, and custodians to understand and address their unique operational challenges.[3]

Core Differentiators

• MPC Wallet Technology: Fordefi's multi-party computation wallet is purpose-built for institutional DeFi operations, enabling secure self-custody of private keys without relying on centralized intermediaries.[2][3]

• DeFi-Native Design: Unlike legacy custody solutions, Fordefi includes built-in DeFi connectivity, governance controls, and policy frameworks that provide visibility and protection over every transaction and approval.[2]

• Institutional Trust: The platform has earned the confidence of nearly 300 institutions managing over $120 billion in monthly transaction volume, demonstrating both security and operational reliability at scale.[2]

• Seamless Integration: Fordefi bridges centralized and decentralized workflows, allowing institutions to operate across both environments without friction or security compromise.[2]

Role in the Broader Tech Landscape

Fordefi sits at the intersection of two powerful trends: the institutional adoption of blockchain technology and the maturation of decentralized finance infrastructure. As traditional financial institutions increasingly explore digital asset strategies, the demand for regulated, secure custody solutions has become critical.[2] Fordefi's acquisition by Paxos—a regulated blockchain infrastructure leader—signals that institutional-grade DeFi security is no longer a niche concern but a foundational layer of the emerging on-chain economy.[2]

The company influences the broader ecosystem by raising security standards for institutional DeFi participation. By demonstrating that institutions can safely operate across decentralized applications without sacrificing control or visibility, Fordefi helps unlock real-world digital asset use cases at scale.[2] This positions the company as essential infrastructure for the transition toward a more efficient, blockchain-based financial system.

Quick Take & Future Outlook

Fordefi's acquisition by Paxos represents a pivotal moment: the company's technology is now positioned to reach a far broader audience while maintaining its focus on security and innovation.[2] As enterprises increasingly deploy digital asset strategies—from tokenized securities to stablecoin infrastructure—Fordefi's MPC wallet and governance capabilities will become more critical to institutional operations.

The key question ahead is how quickly Paxos can integrate Fordefi's technology into its broader custody and tokenization platform without disrupting the trust and operational continuity that its 300+ institutional customers depend on. If executed well, this integration could accelerate the adoption of institutional DeFi by providing a unified custody and infrastructure layer that enterprises need to operate confidently on-chain. Fordefi's journey from specialized DeFi security provider to core component of regulated blockchain infrastructure reflects the broader maturation of the digital asset ecosystem.