Paxos Trust Company LLC has acquired Fordefi Inc., a startup with a crypto wallet platform used by more than 200 institutional investors.

Fortune reported on Tuesday that the deal is worth more than $100 million. That’s a premium over the $83 million valuation Fordefi is believed to have received following its most recent funding round last year. Paxos was one of the participants in that investment.

New York-based Paxos provides software that enables companies to issue stablecoins. In 2023, it partnered with PayPal Holdings Inc. to create the financial technology giant’s PYUSD token. Paxos has also issued two stablecoins of its own that are pegged to the U.S. dollar and gold.

The company, which is backed by over $500 million in funding, also offers other digital asset management services. One offering makes it possible to turn rewards program points into crypto. Another Paxos service enables fintech companies to embed a digital wallet into their applications. According to the software maker, the acquisition of Fordefi will expand its capabilities in the latter area.

Fordefi provides a platform that enables developers to equip their applications with a so-called MPC wallet. MPC, or multiparty computation, is a cybersecurity technique that protects crypto assets from theft. The technology requires users to verify each transaction using multiple encryption keys that are stored on different devices.

If a device used to access a Fordefi-powered wallet is lost, the platform can restore the encryption keys that were stored on the device. The software also provides a transaction simulation tool. The capability enables users to model how a crypto transaction would unfold before carrying it out to identify potential issues.

According to Fordefi, its platform lends itself not only to powering consumer-focused digital wallets but also institutional trading use cases. For example, fund managers can use the company’s transaction simulator to review large trades before approving them. Paxos will use the technology to enhance the crypto management capabilities it offers to institutional investors.

Fordefi will continue operating its platform in the near term. Over time, Paxos will integrate the software into its infrastructure. 

“Joining Paxos allows us to bring our technology to an even broader audience while maintaining our focus on security, usability and innovation,” said Fordefi co-founder and Chief Executive Officer Josh Schwartz. “Together, we will offer enterprises the unified custody and stablecoin infrastructure they need to deploy real-world digital asset use cases at scale.”

The deal comes less than a year after Paxos’ previous acquisition. In February, it bought a Finland-based stablecoin company called Membrane Finance. The move enabled Paxos to make one of its stablecoins available in the European Union.

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