Payward, the parent company of cryptocurrency exchange Kraken, has agreed to acquire the wallet-as-a-service business of Magic Labs in an asset sale that expands its enterprise offerings. Financial terms of the transaction were not disclosed. The deal is expected to close within the coming weeks, subject to customary conditions.

The acquired technology has powered more than 60 million non-custodial wallets and processed over $10 billion in stablecoin volume. More than 200,000 developers have used the infrastructure since Magic Labs began operations in 2018. Clients have included platforms such as Polymarket and WalletConnect.

Integration into Payward Services

Payward plans to fold the wallet software directly into Payward Services, its business-to-business platform. That platform already provides corporate clients with a single connection for crypto trading, custody, tokenized assets, derivatives, and services that move funds between traditional currencies and digital assets.

The addition of embedded wallets will let partners offer self-custody products inside their own applications without assembling multiple separate technology providers. Magic’s system combines a trusted execution environment-based signing mechanism with an embedded integration layer and developer tools, allowing companies to issue and manage non-custodial wallets while users retain control of their assets.

Greenberg noted that the acquisition enables Payward to deliver exchange, custody, and wallet technology through one integrated system. Demand for such tools has grown as firms seek to place blockchain functions inside familiar applications rather than requiring customers to navigate separate wallets and exchanges.

Seller Rebrands and Shifts Focus

Magic Labs is rebranding as Newton Labs and will concentrate exclusively on Newton Protocol, an authorization layer for onchain finance. The protocol is designed to let institutions, asset issuers, and decentralized applications enforce identity, compliance, security, and risk policies before transactions settle, with results verifiable onchain.

Newton Protocol entered mainnet beta in June 2026. Its first product, VaultKit, supplies policy checks for institutional-grade vault operators and currently supports Ethereum and Base, with connections to risk, price, and security providers. Newton Labs intends to extend the system to stablecoins, tokenized real-world assets, and automated financial agents.

Existing wallet customers are scheduled to begin receiving service from Payward on August 1. Integrations are expected to continue without interruption, and customers will not need to take action. The legal completion of the asset purchase remains subject to the stated closing conditions.

Part of a Broader Expansion

The Magic Labs transaction continues a series of acquisitions by Payward aimed at building a comprehensive infrastructure stack beyond its core exchange business. Earlier in 2026 the company completed its purchase of Hong Kong-based stablecoin payments firm Reap, structured as a cash-and-stock deal valued at $600 million. In April it agreed to acquire Bitnomial, a U.S. derivatives platform holding the licenses needed for a full-stack derivatives business, for up to $550 million in cash and stock.

In 2025 Payward acquired retail futures platform NinjaTrader for $1.5 billion. Its shared infrastructure also supports other entities including Breakout, xStocks, Bitnomial, and benchmark provider CF Benchmarks. By bringing wallets in-house, Payward positions itself as a single supplier for businesses seeking to launch crypto products without constructing the underlying financial and blockchain infrastructure themselves.

Magic Labs had previously raised more than $80 million, including a $52 million strategic round led by PayPal Ventures in 2023. Following the sale, Newton Labs and Payward will remain separate, independent companies.