TLDR
- Payward, Kraken’s parent company, agreed to acquire Magic Labs’ wallet-as-a-service business on July 27, 2026
- Magic Labs’ infrastructure has powered over 60 million non-custodial wallets and $10 billion in stablecoin transactions
- The deal adds embedded wallet technology to Payward’s B2B platform, Payward Services
- Magic Labs has rebranded as Newton Labs and will stay independent, focusing on Newton Protocol
- Existing wallet customers will move to Payward Services starting August 1, with no action required
Payward, the parent company of crypto exchange Kraken, has agreed to acquire the wallet-as-a-service business of Magic Labs. The deal, announced July 27, is structured as an asset purchase and covers Magic’s embedded wallet infrastructure rather than the entire company.
Kraken Parent Acquires Magic Labs’ Embedded Wallet Business
According to The Block, Kraken parent Payward acquired Magic Labs’ embedded wallet business through an asset purchase. The business will move to Payward Services, while Magic Labs will become Newton Labs and focus on… pic.twitter.com/4958cDTUXY
— Wu Blockchain (@WuBlockchain) July 27, 2026
Financial terms were not disclosed. The companies expect the transaction to close within several weeks, subject to standard closing conditions.
What Magic Labs Brings to Payward
Magic Labs built infrastructure that has powered more than 60 million non-custodial wallets. It has served over 200,000 developers since launching in 2018 and processed more than $10 billion in stablecoin volume.
The technology will be added to Payward Services, Kraken’s business-to-business platform. That platform already covers trading, custody, tokenized assets, derivatives and fiat-to-crypto payments.
Adding wallet infrastructure means business clients can offer self-custody wallets directly inside their own applications. They would no longer need to rely on separate third-party wallet providers.
Magic’s technical stack includes a trusted execution environment signing system, an embedded integration layer and a developer SDK.
The wallets are described as non-custodial, meaning users keep control of their own assets. The supported networks and exact user experience may vary depending on which business deploys the technology.
Newton Labs CEO Sean Li said existing customers will receive service from Payward starting August 1. Current integrations will continue without interruption.
Newton Labs Moves On to Newton Protocol
Magic Labs has rebranded as Newton Labs and will remain an independent company. It will focus on Newton Protocol, which entered mainnet beta on June 23.
Newton Protocol checks whether transactions meet predefined security, identity, compliance and risk rules before they settle on-chain. It then creates a cryptographic record of that policy decision.
The first product, VaultKit, allows decentralized finance vault operators to apply policy checks to management actions. It currently supports Ethereum and Base, with integrations from RedStone, Credora, Webacy and Chainalysis Hexagate.
Newton Labs plans to expand beyond vaults to stablecoins, tokenized real-world assets and automated financial agents. Those remain future targets, not completed launches.
Magic had previously raised over $80 million, including a $52 million round led by PayPal Ventures in May 2023.
Payward’s Broader Acquisition Push
This deal is part of a wider expansion by Payward. The company bought CFTC-regulated derivatives firm Bitnomial in May for up to $550 million and acquired Hong Kong stablecoin payments company Reap in July.
Payward also purchased retail futures platform NinjaTrader for $1.5 billion in 2025 and tokenized securities provider Backed Finance for an undisclosed amount.
Together, these deals extend Payward’s reach across trading, wallets, payments, custody, derivatives and tokenized assets.
Because Payward and Newton Labs are both privately held, no market reaction data is available for this deal.
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