Kraken’s Parent Company Payward Buys Magic Labs' Wallet Business to Expand Its B2B Platform

Payward, the parent company behind cryptocurrency exchange Kraken, has agreed to acquire Magic Labs' wallet infrastructure business. The acquisition adds embedded, non-custodial wallet technology to Payward Services, the company's business-to-business financial infrastructure platform.

Magic Labs' wallet platform has powered more than 60 million wallets, processed over $10 billion in stablecoin volume, and supports more than 200,000 developers across consumer and institutional applications.

The transaction is expected to close in the coming weeks, subject to customary closing conditions.

What the Acquisition Adds

Payward Services already provides enterprise infrastructure for crypto trading, custody, tokenized assets, derivatives, and fiat on- and off-ramps. The acquisition extends those services by allowing partners to integrate embedded self-custody wallets without relying on multiple infrastructure providers.

"Embedded wallets are becoming foundational infrastructure for every onchain product. Magic Labs' technology lets us bring that layer in-house and offer partners a complete, integrated stack: exchange, custody, and now wallets; without stitching together multiple providers." - Mark Greenberg, Chief Commercial Officer of Payward.

Magic Labs built its platform around trusted execution environment-based signing technology, an embedded integration layer, and a developer software development kit designed to help businesses issue and manage non-custodial wallets at scale.

Magic Labs Becomes Newton Labs

As part of the transaction, Magic Labs has rebranded as Newton Labs. The sale covers only the embedded wallet business, meaning Magic Labs and Payward will remain separate companies after the transaction closes.

Newton Labs will focus exclusively on Newton Protocol, an authorization layer for onchain finance that enforces compliance, security, identity, and risk policies before transactions settle onchain. The protocol entered mainnet beta in June 2026.

The company's first product, VaultKit, gives institutional vaults programmable policy controls before transactions execute. Newton Labs also plans to extend the technology to real-world assets, stablecoins, and agentic commerce and finance.

“This transition allows us to put our full energy behind Newton, the authorization layer for onchain finance, while the wallet business moves to a team committed to serving our customers” - Sean Li, CEO of Newton Labs.

Payward’s Acquisition Spree

The acquisition continues Payward's recent expansion into financial infrastructure. 

Earlier this year, the company completed its acquisition of CFTC-licensed derivatives exchange Bitnomial in a deal worth up to $550 million and acquired Hong Kong-based stablecoin payments company Reap Technologies for $600 million. Payward also acquired retail futures platform NinjaTrader for $1.5 billion in 2025.

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