Payward, the parent company of crypto exchange Kraken, has agreed to acquire Magic Labs' wallet infrastructure business to expand its business-to-business services for companies building onchain financial products. The transaction adds embedded, non-custodial wallet technology that powers more than 60 million wallets and has processed over $10 billion in stablecoin volume to Payward Services, the company's B2B infrastructure platform. Magic Labs, which has since rebranded to Newton Labs, will shift its focus to developing Newton Protocol, an authorization layer for onchain finance, following the sale. The acquisition is expected to close within weeks, subject to customary conditions, though financial terms were not disclosed. Embedded wallets are becoming foundational infrastructure for onchain products, allowing businesses to offer self-custody solutions without relying on multiple technology providers.
Payward Acquires Magic's 60M-Wallet Infrastructure for B2B Expansion
The acquisition brings Magic's technology, which has powered more than 60 million wallets and processed over $10 billion in stablecoin volume, into Payward's portfolio. More than 200,000 developers have used Magic's products, according to the official announcement. Financial terms of the deal were not disclosed. The transaction is expected to close within weeks, subject to customary conditions.
Magic's infrastructure combines a trusted execution environment-based signing system with an embedded integration layer and developer software. The system allows companies to issue and manage non-custodial wallets while users retain control of their assets. Demand for such products has grown as companies seek to place blockchain functions inside familiar applications, rather than requiring customers to navigate separate wallets and exchanges.
Payward Services Integrates Non-Custodial Wallet Technology
Payward Services gives corporate clients a single connection to crypto trading, custody, tokenized assets, derivatives, and services for moving funds between traditional currencies and digital assets. Adding Magic's wallet software will allow those partners to offer self-custody products without relying on several separate technology providers. Businesses could use the same platform to provide wallets alongside trading and settlement services.
Payward Chief Commercial Officer Mark Greenberg stated that embedded wallets are becoming foundational infrastructure for every onchain product. He added that the deal would allow Payward to offer exchange, custody and wallet technology through one integrated system. Once the acquisition is completed, Payward plans to integrate Magic's technology directly into Payward Services.
The deal extends Payward beyond the exchange business for which it is best known. Its shared infrastructure also supports Ninjatrader, Breakout, xStocks, Bitnomial and benchmark provider CF Benchmarks. By bringing wallets in-house, Payward is positioning itself as a single supplier for businesses that want to launch crypto products without building the underlying financial and blockchain infrastructure themselves.
Newton Labs Shifts Focus to Newton Protocol After Sale
Magic Labs has since become Newton Labs, which will focus on developing Newton Protocol. The project is designed as an authorization layer for onchain finance. Newton aims to let institutions, asset issuers, and decentralized protocols enforce identity, compliance, security, and risk policies before transactions settle. The results can then be verified onchain.
Newton Labs CEO Sean Li said the transition allows the company to put its full energy behind Newton, while placing the wallet business with a company committed to supporting its customers.
FAQ
What did Payward acquire from Magic Labs?
Payward agreed to acquire Magic Labs' wallet infrastructure business, which includes embedded, non-custodial wallet technology that powers more than 60 million wallets and has processed over $10 billion in stablecoin volume. More than 200,000 developers have used Magic's products. The acquisition is expected to close within weeks, subject to customary conditions, though financial terms were not disclosed.
Why did Payward acquire Magic's wallet business?
Payward acquired Magic's wallet infrastructure to expand its business-to-business services for companies building onchain financial products. The transaction adds embedded wallet technology to Payward Services, allowing corporate clients to offer self-custody products without relying on multiple separate technology providers. Payward Chief Commercial Officer Mark Greenberg stated that embedded wallets are becoming foundational infrastructure for every onchain product, and the deal enables Payward to offer exchange, custody and wallet technology through one integrated system.
What will Newton Labs focus on after selling the wallet business?
Magic Labs has rebranded to Newton Labs and will focus on developing Newton Protocol, an authorization layer for onchain finance. Newton aims to let institutions, asset issuers, and decentralized protocols enforce identity, compliance, security, and risk policies before transactions settle, with results verified onchain. Newton Labs CEO Sean Li said the transition allows the company to put its full energy behind Newton.
