Magic Labs today announced that it has sold its embedded wallet business to Payward, Inc., a unified financial infrastructure platform advancing an open, global financial system. The transaction is an asset sale, and Magic Labs, Inc. and Payward will remain separate, independent companies. After the close, wallet customers will be serviced by Payward Services, while Magic Labs will continue as Newton Labs, focused on building the authorization layer for onchain 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,” said Sean Li, CEO of Newton Labs.

Since pioneering embedded wallet infrastructure in 2018, Magic Labs says it has created more than 60 million wallets and supports over 200,000 developers across consumer and institutional applications. The sale also highlights how embedded wallets have become a core part of onchain product stacks, particularly for teams that want users to interact with crypto apps without managing complex wallet setup directly.

Newton Labs is the core developer of Newton Protocol, described as the authorization layer for onchain finance. The protocol is designed to let any asset or application enforce compliance, security, and risk policies on a transaction before it settles onchain, turning rules that today exist in operational processes and off-chain systems into automatic execution that anyone can verify. The protocol entered mainnet beta in June 2026.

“Embedded wallets are becoming foundational infrastructure for every onchain product. Magic Labs’ technology lets us bring that layer in-house and offer partners a complete, integrated stack – exchange, custody, and now wallets – without stitching together multiple providers,” said Mark Greenberg, Chief Commercial Officer of Payward.

What changes for customers

Wallet customers will be serviced by Payward Services following the close of the transaction, which is expected in the coming weeks. Products and integrations will continue to operate without interruption, and no customer action is required. Each customer will receive direct communication about the transition, and vendors and counterparties whose agreements are affected will be notified directly.

What comes next for Newton Labs

Newton Labs’ first product built on Newton Protocol is VaultKit, a composable set of policies that institutional-grade vaults use to enforce compliance, security, identity, and risk logic inside every transaction before it settles. The company says this gives capital allocators a shared, transparent standard so they can verify that the rules are being enforced rather than simply trust that they are.

Vaults are the starting point, and the same authorization layer is intended to extend to RWAs, stablecoins, and agentic commerce and finance.