Kraken Parent Payward Acquires Magic Labs' Embedded Wallet Business
The asset deal marks another step in Payward's push to become a comprehensive crypto infrastructure provider as Magic Labs rebrands to Newton Labs.
Payward, the parent company of cryptocurrency exchange Kraken, has acquired Magic Labs' embedded wallet business in an asset sale, both companies announced. The deal expands Payward's business-to-business Web3 infrastructure offerings while allowing both organizations to operate independently.
Wallet Infrastructure at Scale
Since its 2018 launch, Magic Labs has created more than 60 million wallets and supports over 200,000 developers, according to the acquisition announcement. The platform provides embedded, non-custodial wallet technology that enables enterprises to integrate crypto functionality without building infrastructure from scratch.
Following the transaction, Magic Labs will rebrand as Newton Labs and focus on onchain finance infrastructure, specifically the Newton Protocol, an authorization layer for onchain transactions. The company will continue operating independently from Payward.
Payward's Infrastructure Push
The acquisition fits Payward's broader strategy to build a comprehensive financial infrastructure platform beyond its core exchange business. Recent deals include the purchase of CFTC-licensed derivatives exchange Bitnomial for up to $550 million, the acquisition of Backed Finance in January 2026, and the purchase of Magna in February 2026.
By integrating Magic Labs' embedded wallet technology, Payward positions itself as a critical infrastructure provider for businesses entering onchain finance, rather than operating solely as an exchange. The move reduces friction for enterprises seeking to integrate non-custodial crypto wallets into their products.
Market Context
The deal reflects growing consolidation in crypto infrastructure as established players seek to offer comprehensive service suites. Embedded wallet solutions have become increasingly important as traditional businesses explore Web3 integration, with demand for turnkey solutions that handle key management and user onboarding.
Terms of the transaction were not disclosed. The acquisition is expected to close subject to customary closing conditions.