TLDR
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Magic Labs sells embedded wallet business to Kraken parent Payward
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Magic Labs rebrands as Newton Labs with onchain finance focus
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Wallet customers will transition to Payward Services after closing
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Newton Protocol targets compliance and security before settlement
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Payward expands crypto platform through another strategic acquisition
Magic Labs has agreed to sell its embedded wallet business to Payward, the parent company of cryptocurrency exchange Kraken. The asset sale will transfer wallet operations to Payward Services while Magic Labs rebrands as Newton Labs. The move shifts Magic Labs toward onchain finance infrastructure and expands Payward’s growing digital asset platform.
Magic Labs exits wallet business and shifts to Newton Protocol
The transaction follows an asset sale structure rather than a corporate merger. Both companies will continue operating as separate and independent businesses. Existing wallet customers will transition to Payward Services after the deal closes.
Since launching in 2018, Magic Labs has created more than 60 million embedded wallets. The company also supports more than 200,000 developers across consumer and institutional applications. These products helped establish Magic Labs as a major provider of embedded wallet infrastructure.
After the transaction, Magic Labs will operate under the Newton Labs name. The company will focus entirely on developing the Newton Protocol for onchain finance. That protocol applies compliance, security, identity, and risk controls before blockchain transactions reach settlement.
Newton Labs targets institutional onchain finance infrastructure
Newton Labs launched the mainnet beta of the Newton Protocol during June 2026. The platform introduces an authorization layer that verifies transaction requirements before execution. Organizations can apply predefined policies directly within transaction flows.
The company’s first protocol-based product is VaultKit for institutional digital asset custody. The product enables composable policy enforcement covering compliance, identity verification, security, and transaction risk. Institutions can automate internal controls before completing blockchain transfers.
Newton Labs also plans to expand the protocol across stablecoins, tokenized real-world assets, and agentic finance applications. The company intends to support chain unification and reduce fragmentation across multiple blockchain networks.It continues collaborating with Polygon AggLayer to strengthen cross-chain infrastructure.
Payward expands crypto infrastructure through acquisitions
The acquisition adds another business to Payward’s active expansion strategy during 2026. Earlier this year, the company completed its acquisition of Bitnomial for up to $550 million in cash and stock. It also agreed to acquire Hong Kong-based stablecoin payments company Reap Technologies for approximately $600 million.
Recent acquisitions also include Backed Finance and Magna, extending Payward’s infrastructure across tokenized assets and token management services. Now Magic Labs contributes embedded wallet technology with proven scale and developer adoption. Together, these businesses broaden Payward’s capabilities across regulated trading, payments, custody, and blockchain infrastructure.
Financial terms for the Magic Labs asset sale remain undisclosed. However, the company previously raised $52 million in funding led by PayPal Ventures, highlighting institutional backing before the transaction. The restructuring now positions Magic Labs to concentrate exclusively on authorization technology while Payward strengthens its integrated crypto services ecosystem.
