Payward has agreed to acquire Magic Labs’ wallet-as-a-service business, adding embedded, non-custodial wallets to the infrastructure platform behind Kraken. The deal brings technology used to create more than 60 million wallets into Payward’s expanding enterprise product suite.
Key Takeaways
Payward agreed to buy Magic’s wallet unit, adding technology behind 60M+ wallets to Kraken’s stack.Magic’s $10B volume and 200,000 developers could deepen Payward’s enterprise crypto reach.Payward will integrate Magic’s 60M-wallet tech as Newton Labs shifts to Newton Protocol.Payward, the parent company of crypto exchange Kraken, has agreed to acquire Magic Labs’ wallet infrastructure business as it pushes deeper into services for companies building onchain financial products.
The transaction will add embedded, non-custodial wallets to Payward Services, the company’s business-to-business infrastructure platform. Financial terms were not disclosed.
Magic’s technology has powered more than 60 million wallets and processed over $10 billion in stablecoin volume. More than 200,000 developers have used its products, according to the announcement.
Payward Builds a Broader Enterprise StackPayward 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.
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.
Magic’s Former Parent Turns to Onchain AuthorizationMagic 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.
“This transition allows us to put our full energy behind Newton,” Newton Labs CEO Sean Li said, while placing the wallet business with a company committed to supporting its customers.
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.
