SKN | Kraken Parent Payward Acquires Magic Labs’ Wallet Business to Expand Crypto Infrastructure

• Payward, the parent company of cryptocurrency exchange Kraken, has agreed to acquire the wallet-as-a-service business of Magic Labs.
• The acquisition will integrate Magic Labs’ non-custodial wallet technology into Payward’s enterprise crypto infrastructure platform.
• The deal is designed to help businesses offer embedded self-custodied crypto wallets through a single integration.
• Following the sale, Magic Labs will focus on developing its Newton platform for secure onchain transaction authorization.

Payward Strengthens Enterprise Crypto Services

Payward, the parent company of cryptocurrency exchange Kraken, has announced the acquisition of the wallet-as-a-service business operated by Magic Labs, expanding its enterprise blockchain infrastructure as institutional demand for digital asset services continues to grow.

The acquisition will enhance Payward Services, the company’s business-to-business platform that provides cryptocurrency trading, custody, tokenized asset infrastructure and fiat payment solutions.

Although the companies did not disclose the financial terms of the agreement, they expect the transaction to close in the coming weeks, subject to customary regulatory and closing conditions.

Embedded Wallet Technology Joins Payward Platform

The acquisition brings Magic Labs’ non-custodial wallet technology directly into Payward’s enterprise ecosystem.

Embedded wallet technology enables businesses to integrate self-custodied cryptocurrency wallets into their own applications without requiring customers to download or connect external wallet providers.

This simplifies the user experience while allowing businesses to maintain greater control over how digital asset services are delivered within their platforms.

By adding wallet infrastructure to its existing offerings, Payward aims to provide enterprises with a more comprehensive blockchain technology stack through a single integration.

Simplifying Blockchain Infrastructure

As blockchain adoption expands across financial services, businesses increasingly seek integrated infrastructure providers rather than managing multiple vendors.

Payward believes the addition of embedded wallet capabilities will reduce complexity for enterprise customers by combining trading, custody, tokenization, fiat payment rails and wallet functionality within one platform.

The move reflects a broader trend among cryptocurrency infrastructure providers seeking to build end-to-end solutions for financial institutions, fintech companies and enterprise developers entering the digital asset market.

Magic Labs Built Millions of Crypto Wallets

Magic Labs has become one of the leading providers of wallet infrastructure within the blockchain ecosystem.

According to the company, its technology has been used to create more than 60 million non-custodial wallets by over 200,000 developers worldwide.

The platform has also supported more than $10 billion in stablecoin transaction volume, highlighting the growing adoption of embedded wallet technology across decentralized applications and digital financial services.

Its infrastructure has been widely adopted by developers seeking to improve user onboarding and simplify access to blockchain applications.

Magic Labs Turns Attention to Newton

Following the divestiture of its wallet business, Magic Labs plans to concentrate on Newton, its platform designed to improve authorization and verification of onchain transactions.

Newton aims to provide secure transaction authentication without relying on centralized intermediaries, supporting the continued development of decentralized financial infrastructure.

The strategic shift allows Magic Labs to focus its resources on blockchain identity and transaction security while Payward expands its enterprise wallet capabilities.

Outlook

Payward’s acquisition of Magic Labs’ wallet business reflects the growing demand for integrated blockchain infrastructure as digital asset adoption accelerates. By combining trading, custody, tokenization and embedded wallet services into a unified enterprise platform, Payward is positioning itself to serve businesses seeking simpler access to blockchain technology. The deal also highlights the industry’s continued evolution toward comprehensive infrastructure solutions that support the expanding adoption of cryptocurrency and tokenized financial services.