Magic Labs has agreed to sell its embedded wallet business to Payward, the parent company of Kraken. The transaction value was not disclosed. The deal will be completed within the next few weeks after standard closing conditions are met, through an asset sale. Magic Labs’ wallet business has created more than 60 million wallets. Starting from Aug. 1, customers will be served by Payward.
Deal Details: Magic Labs’ Embedded Wallet Business Sold to Payward
Per the relevant announcement, the main terms of the transaction are as follows: The deal will be structured as an asset sale, with the specific amount undisclosed. Magic Labs CEO Li Xiaoming said the transaction will be completed within the next few weeks (subject to customary closing conditions). Starting from Aug. 1, 2026, Magic Labs’ embedded wallet customers will be served by Payward; the business will operate independently of Payward.
Magic Labs’ wallet business has created more than 60 million wallets. Notable users include Polymarket and WalletConnect. Payward said it plans to integrate this wallet technology to expand its Payward Services product suite.
Magic Labs Renamed to Newton Labs, Transitioning to Focus on an On-Chain Finance Authorization Layer
According to the company statement, after completing the sale of its wallet business, Magic Labs will formally rename itself to Newton Labs, focusing resources on its Newton Protocol and positioning it as an on-chain finance authorization layer.
In the statement, CEO Li Xiaoming said, “This transition allows us to put all our efforts into Newton, the on-chain finance authorization layer, while the wallet business will also move to a team committed to serving customers.”
Payward 2026 Acquisition Timeline
According to reports, Payward’s acquisition activity in 2026 is as follows:
Apr. 2026: Agreed to acquire the U.S. derivatives platform Bitnomial for cash plus stock, with a total value of up to $550 million; Bitnomial holds all three licenses required for a full-spectrum derivatives business
May 7, 2026 (initially announced; completed): Acquired Hong Kong stablecoin payments and card issuance company Reap Technologies Holdings in a cash-and-stock transaction valued at $600 million
July 2026 (pending completion): Acquisition of Magic Labs’ embedded wallet business; transaction value undisclosed; expected to be completed within the next few weeks
Payward’s valuation is about $20 billion. Previously, its S-1 draft for a U.S. listing was filed in November last year but was paused in March this year due to challenging market conditions.
FAQ
How big is the wallet business being sold by Magic Labs?
According to Magic Labs, its embedded wallet business has created more than 60 million wallets. Notable users include Polymarket and WalletConnect. Starting from Aug. 1, 2026, customers will be served by Payward.
What strategic transition will Magic Labs make after selling the wallet business?
According to the company statement, after selling the wallet business, Magic Labs will officially rename itself to Newton Labs and direct all resources to Newton Protocol (an on-chain finance authorization layer).
What other acquisitions is Payward planning to make in 2026?
According to reports, Payward completed the acquisition of Reap Technologies ($600 million) in 2026 and agreed in April to acquire Bitnomial for up to $550 million. Payward’s valuation is about $20 billion, and its Kraken IPO plan was paused in March this year.
