Magic Labs has agreed to sell its embedded wallet business to Kraken’s parent company, Payward.

The transaction is expected to close in the coming weeks, subject to customary closing conditions. No purchase price was disclosed, but Magic Labs CEO Sean Li said the acquisition will take place through an asset sale.

Magic Labs’ wallet business has created more than 60 million wallets and is used by companies including Polymarket and WalletConnect.

According to Li, the business will operate independently of Payward, although customers will be serviced by Payward beginning August 1. Payward plans to integrate the wallet technology to expand its Payward Services product suite, adding an established wallet infrastructure business to a broader set of crypto services.

Magic Labs said the divestiture will allow it to focus on Newton Protocol, its authorization layer for on-chain 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,” Li said.

As part of the transition, Magic Labs is being rebranded as Newton Labs.

Today we announced two decisions: 1) we've sold our wallet business to Payward, the company behind Kraken. And 2) Magic Labs is becoming Newton Labs. Onboarding the world was part one of our mission. Securing the capital that follows is part two. Here's a video on why. 👇 pic.twitter.com/4ezZfcoVkX — Sean Li (@seanli) July 27, 2026

Today we announced two decisions: 1) we've sold our wallet business to Payward, the company behind Kraken. And 2) Magic Labs is becoming Newton Labs. Onboarding the world was part one of our mission. Securing the capital that follows is part two. Here's a video on why. 👇 pic.twitter.com/4ezZfcoVkX

Payward’s acquisition activity continues

The Magic Labs deal adds to a string of acquisitions by Kraken’s parent company in 2026.

Payward recently completed its acquisition of Reap Technologies Holdings Limited ("Reap"), a Hong Kong stablecoin payments and card-issuing company it first announced on May 7. That transaction was structured as a cash-and-stock deal valued at $600 million.

In April, Payward also agreed to pay up to $550 million in cash and stock for Bitnomial, a U.S. derivatives platform that holds all three licenses required to operate a full-stack derivatives business, as Cryptopolitan reported.

The deal was said to have valued Payward at $20 billion.

While Payward has continued to acquire crypto businesses, earlier plans to take Kraken public remain on hold. The company filed a draft S-1 registration statement with the SEC in November for a potential U.S. listing. However, the process was halted in March, with Kraken citing difficult market conditions.