Payward, the parent company of cryptocurrency exchange Kraken, has agreed to acquire the wallet-as-a-service business of Magic Labs, adding embedded wallet technology to its enterprise infrastructure platform.

The company said Monday that the acquisition will enable it to integrate Magic Labs’ non-custodial wallet technology into Payward Services, its business-to-business platform for crypto trading, custody, tokenized assets and fiat on- and off-ramps. Financial terms of the transaction were not disclosed.

The deal is intended to broaden Payward’s infrastructure offering for businesses building onchain financial services. By adding embedded wallets, Payward said clients will be able to offer self-custodied wallets directly inside their own applications, rather than relying on separate third-party wallet providers. In non-custodial wallet models, users retain control over their wallets instead of handing custody to an intermediary, a distinction that is central to how many onchain applications are designed. The company said this could allow business customers to access a wider set of blockchain infrastructure tools through a single integration.

Magic Labs said its infrastructure has been used to create more than 60 million non-custodial wallets for more than 200,000 developers. The company also said its technology has facilitated more than $10 billion in stablecoin transactions. Stablecoins have become a major use case for onchain payments and settlement, making wallet infrastructure an important component for companies that want to embed crypto functionality into consumer or enterprise products.

The companies expect the acquisition to close in the coming weeks, subject to customary closing conditions.

After the sale, Magic Labs said it will focus on Newton, a platform designed to help users and applications securely authorize and verify onchain transactions without relying on centralized intermediaries.