Kraken’s Payward Acquires Magic Labs Wallet Infrastructure Supporting 60M Users

Key Highlights On July 27, 2026, Payward, the parent entity behind Kraken, finalized an agreement to purchase Magic Labs’ wallet-as-a-service division The acquired infrastructure supports more than 60 million self-custody wallets and has facilitated over $10 billion in stablecoin transfers This acquisition integrates embedded wallet capabilities into Payward Services, the company’s business-to-business offering Magic Labs has undergone a rebrand to Newton Labs and will operate independently, concentrating on its Newton Protocol initiative Current Magic wallet clients will transition to Payward Services beginning August 1, requiring no immediate changes from users The parent organization behind cryptocurrency exchange Kraken, Payward, has finalized an agreement to purchase the wallet-as-a-service division from Magic Labs. Revealed on July 27, this transaction is configured as an asset acquisition focusing specifically on Magic’s embedded wallet technology rather than acquiring the complete organization. Kraken Parent Acquires Magic Labs’ Embedded Wallet Business According to The Block, Kraken parent Payward acquired Magic Labs’ embedded wallet business through an asset purchase. The business will move to Payward Services, while Magic Labs will become Newton Labs and focus on… pic.twitter.com/4958cDTUXY — Wu Blockchain (@WuBlockchain) July 27, 2026 Neither party revealed the purchase price. Both organizations anticipate completing the deal in the coming weeks, pending standard regulatory approvals and closing requirements. Magic Labs’ Infrastructure Portfolio Since its 2018 inception, Magic Labs has developed technology supporting over 60 million self-custody digital wallets. The platform has attracted more than 200,000 software developers and facilitated transactions exceeding $10 billion in stablecoin volume. This infrastructure will integrate into Payward Services, Kraken’s enterprise-focused platform. The platform currently provides trading capabilities, custody solutions, tokenized asset management, derivatives products, and fiat-to-cryptocurrency conversion services. Incorporating wallet technology enables enterprise customers to embed self-custody wallet functionality directly within their proprietary applications. This eliminates dependency on external wallet service providers. The technical architecture from Magic encompasses a trusted execution environment for cryptographic signing, an embedded integration framework, and a software development kit for programmers. These wallets operate on a non-custodial basis, ensuring end users maintain full control over their digital assets. Network compatibility and specific implementation details will depend on individual business deployments. According to Newton Labs CEO Sean Li, existing clients will transition to Payward’s support infrastructure on August 1. All current implementations will maintain uninterrupted functionality throughout the migration. Newton Labs Charts Independent Course with Protocol Focus Following the asset sale, Magic Labs has rebranded itself as Newton Labs and will continue as a separate entity. The company’s primary focus shifts to Newton Protocol, which launched its mainnet beta phase on June 23. Newton Protocol validates whether blockchain transactions comply with predetermined security policies, identity requirements, regulatory standards, and risk parameters before final on-chain settlement. The system generates cryptographic attestations documenting each policy evaluation.