Kraken parent company Payward has agreed to acquire the embedded wallet business of Magic Labs, a move that expands its push into enterprise crypto infrastructure and strengthens its business-to-business product offerings. The transaction includes wallet technology that has powered more than 60 million non-custodial wallets since Magic Labs launched in 2018.
The asset sale allows Payward to integrate Magic Labs’ wallet infrastructure into Payward Services, its enterprise platform that already provides crypto trading, custody, tokenized assets, derivatives, and fiat on and off ramps. Financial terms of the acquisition were not disclosed.
Expanding Enterprise Infrastructure
Magic Labs has built embedded wallet technology that enables developers to add self-custodial crypto wallets directly into applications without requiring users to manage traditional seed phrases. The company says its platform serves more than 200,000 developers and has supported over $10 billion in stablecoin transaction volume.
Following the transaction, existing wallet customers will transition to Payward Services, while the companies will continue operating as separate entities. The acquisition is expected to simplify blockchain infrastructure for enterprise customers by allowing them to access multiple services through a single provider.
The deal also continues Payward’s broader expansion strategy beyond cryptocurrency trading. Over the past year, the company has pursued several acquisitions aimed at building a comprehensive financial infrastructure platform, including purchases in derivatives, token management, and payments.
Magic Labs Becomes Newton Labs
As part of the restructuring, Magic Labs will rebrand as Newton Labs and shift its entire focus to Newton Protocol, an authorization layer designed for onchain finance.
The company said Newton Protocol is intended to help institutions enforce compliance, identity verification, security, and risk policies before blockchain transactions are finalized. Its first product, VaultKit, targets institutional customers seeking programmable controls for digital asset operations.
Chief Executive Officer Sean Li said the sale enables the company to dedicate its resources to developing authorization infrastructure for onchain financial applications while placing the wallet business with a company focused on scaling enterprise services.
The acquisition reflects the growing demand for integrated blockchain infrastructure as financial institutions and businesses continue adopting tokenized assets, stablecoins, and other onchain financial products.
