Kraken parent company Payward has agreed to acquire the embedded wallet business of Magic Labs, a move that expands its push into enterprise crypto infrastructure and strengthens its business-to-business product offerings. The transaction includes wallet technology that has powered more than 60 million non-custodial wallets since Magic Labs launched in 2018.

The asset sale will allow Payward to integrate Magic Labs’ wallet infrastructure into Payward Services, its enterprise platform that already provides crypto trading, custody, tokenized assets, derivatives, and fiat on- and off-ramps. Financial terms of the acquisition were not disclosed.

Expanding Enterprise Infrastructure

Magic Labs has developed embedded wallet technology that allows developers to add self-custodial crypto wallets directly into applications without requiring users to manage traditional seed phrases. The company said its platform serves more than 200,000 developers and has supported more than $10 billion in stablecoin transaction volume.

After the transaction closes, existing wallet customers will transition to Payward Services, while the two companies will continue to operate as separate entities. Payward said the acquisition is intended to simplify blockchain infrastructure for enterprise customers by giving them access to multiple services through a single provider.

The deal also extends Payward’s broader expansion strategy beyond cryptocurrency trading. Over the past year, the company has pursued several acquisitions aimed at building a more comprehensive financial infrastructure platform, including purchases in derivatives, token management, and payments. For enterprise customers, that consolidation matters because wallet technology is often one piece of a larger stack that also includes custody, settlement, compliance, and payment flows.

Magic Labs to Rebrand as Newton Labs

As part of the restructuring, Magic Labs will rebrand as Newton Labs and shift its entire focus to Newton Protocol, an authorization layer designed for onchain finance.

The company said Newton Protocol is intended to help institutions enforce compliance, identity verification, security, and risk policies before blockchain transactions are finalized. Its first product, VaultKit, is aimed at institutional customers seeking programmable controls for digital asset operations.

Chief Executive Officer Sean Li said the sale allows the company to dedicate its resources to building authorization infrastructure for onchain financial applications while placing the wallet business with a company focused on scaling enterprise services.

The acquisition reflects continued demand for integrated blockchain infrastructure as financial institutions and businesses adopt tokenized assets, stablecoins, and other onchain financial products. The structure of the deal also points to a broader industry shift: wallet UX, enterprise controls, and regulated financial services are increasingly being packaged together rather than offered as standalone tools.