Payward, the parent company of crypto exchange Kraken, has agreed to acquire the wallet-as-a-service business of Magic Labs, expanding its enterprise blockchain infrastructure capabilities as demand for onchain financial products continues to accelerate.

The acquisition will integrate Magic Labs’ non-custodial wallet technology into Payward Services, the company’s B2B platform that supports crypto trading, custody, tokenized assets, derivatives, and payment solutions.

The transaction is expected to close within the coming weeks, subject to customary closing requirements. Financial terms were not disclosed.

Fundamentally, the move reflects the company’s intention to build an interconnected platform that would allow businesses to create digital assets without relying on a range of outside suppliers. That broader software-and-services stack is increasingly relevant as more firms explore blockchain-based payments, tokenized assets, and consumer-facing apps that need embedded crypto functions without adding separate wallet flows.

Source: CoinDesk’s X Post

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Payward Strengthens Enterprise Blockchain Offering

Payward Services provides financial services critical to businesses, including liquidity, custody services, compliance software, settlement services, and digital asset services.

By adding embedded wallet services, Payward aims to give partners a full in-app solution for building their own blockchain with self-custody through their applications.

With Magic Labs’ technology, non-custodial wallets can be integrated directly into Payward’s platform without requiring users to download a separate wallet.

As new fintech, gaming, payments, and tokenized asset businesses emerge, that capability has become increasingly important.

“Embedded wallets are becoming foundational infrastructure for every on-chain product,” said Mark Greenberg, CCO at Payward. Greenberg said Magic Labs’ technology would allow Payward to combine its exchange, custody, and wallet offerings into one unified platform.

Magic Labs Brings Large-Scale Wallet Technology

Magic Labs has built a wallet framework for Web3 that currently powers more than 60 million non-custodial wallets, supports more than 200,000 developers, and has processed more than $10 billion in stablecoin transactions across blockchain applications.

Its technology includes TEE-based signing, embedded wallet features, and a developer SDK designed to help companies build blockchain wallets at scale. The deal comes as embedded wallets take on greater importance by making it easier for users to interact with apps they trust, while giving companies a way to add wallet functionality without building that infrastructure from scratch.

What Comes Next

The acquisition underscores rising competition among companies in the crypto infrastructure sector as they look for platforms that can help them adopt blockchain technology.

With growing tokenization, greater stablecoin use, and continued development in decentralized finance, there is increasing demand for platforms that combine multiple services in one package.

After the acquisition, Magic Labs will focus on Newton, an ecosystem designed to improve authorizations and transaction security on the blockchain.

Payward, meanwhile, will incorporate wallet services into its products, allowing companies to create blockchain-based financial instruments faster while reducing dependence on separate infrastructure vendors.

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