TLDR
- Payward acquires Magic Labs’ embedded wallet business as Kraken’s parent expands digital asset infrastructure tools.
- Magic Labs will rebrand as Newton Labs and focus on Newton Protocol for onchain finance.
- Wallet customers will transition to Payward Services while both companies remain separate after the sale.
- Magic Labs has created over 60 million wallets and supports more than 200,000 developers worldwide.
- Payward’s deal follows Bitnomial and Reap acquisitions as it builds broader crypto financial infrastructure services.
Kraken parent Payward has agreed to acquire Magic Labs’ embedded wallet business as Magic restructures and relaunches as Newton Labs to focus on onchain authorization infrastructure.
Payward Acquires Magic Labs Wallet Unit
Magic Labs said Monday that it agreed to sell its embedded wallet business to Payward, the parent company of crypto exchange Kraken. The transaction is structured as an asset sale, and the companies will remain separate after the deal closes.
Wallet customers will move to Payward Services as part of the transition. Magic Labs said the sale allows the wallet business to operate under a team focused on customer support and product continuity.
Magic Labs has built more than 60 million wallets since its founding in 2018. The company also supports more than 200,000 developers across consumer and institutional applications.
The deal gives Payward another wallet infrastructure asset as Kraken’s parent company expands beyond exchange trading. Payward has been adding services tied to payments, derivatives, custody, and broader digital asset infrastructure.
Magic Labs Relaunches as Newton Labs
Magic Labs will now operate as Newton Labs and focus on Newton Protocol. The protocol is designed as an authorization layer for onchain finance, with checks applied before transactions settle onchain.
Newton Labs said the protocol can enforce compliance, security, identity, and risk policies inside transaction flows. The system entered mainnet beta in June 2026.
Newton Labs CEO Sean Li said, “This transition allows us to put our full energy behind Newton, the authorization layer for onchain finance.” He added that the wallet business would move to a team dedicated to customer service.
The company said its first product on Newton Protocol is VaultKit. The product gives institutional-grade vaults a composable policy system for compliance, security, identity, and risk rules before settlement.
Newton Labs said the authorization layer may also support real-world assets, stablecoins, and agentic commerce and finance. The company is now positioning Newton Protocol as its main product focus after the asset sale.
Payward Expands Infrastructure Push
The acquisition continues Payward’s recent dealmaking across crypto infrastructure. In May, the company completed its acquisition of CFTC-licensed derivatives exchange Bitnomial for up to $550 million in cash and stock.
Payward also reached a $600 million agreement to acquire Hong Kong-based stablecoin payments firm Reap Technologies. That deal added another payments-focused business to its growing platform.
The Magic Labs wallet deal fits into the same infrastructure strategy. Embedded wallets help developers add crypto access directly into applications without requiring users to manage separate wallet tools.
For Kraken, Payward’s parent structure gives the group more room to build services beyond spot trading. The added wallet business may support customer onboarding, developer tools, and application-level crypto access.
The companies did not disclose financial terms for the Magic Labs transaction. Magic Labs said the restructuring separates its mature wallet business from Newton Labs’ work on authorization systems for onchain finance.
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