Kraken's parent company, Payward, disclosed that it has agreed to acquire Magic Labs' wallet infrastructure business. This deal will integrate its embedded, non-custodial wallet technology into Payward Services, further complementing its crypto-financial infrastructure offerings for enterprise clients.

Acquisition to replenish wallet

Payward Services currently offers services including crypto trading, custody, tokenized assets, derivatives, and fiat currency deposits and withdrawals. Following the acquisition, the partner can integrate an embedded self-custodial wallet into a single platform, reducing reliance on multiple infrastructure providers.

Magic Labs' wallet platform supports over 60 million wallets, processes over $10 billion in stablecoin transactions, and serves over 200,000 developers, covering both consumer and institutional application scenarios.

Magic Labs has been renamed Newton Labs

The announcement indicates that the sale only involves the embedded wallet business. Following the transaction, Payward and Magic Labs will continue to operate as independent companies. Meanwhile, Magic Labs has been renamed Newton Labs.

Newton Labs will then shift its focus to Newton Protocol, an authorization layer for on-chain finance primarily used to enforce compliance, security, identity, and risk-related policies before transactions are settled on-chain. The protocol entered mainnet testing in June 2026.

Payward continues to expand its infrastructure footprint.

This deal continues Payward's recent acquisition spree. Earlier this year, the company completed its acquisition of Bitnomial, a derivatives exchange licensed by the U.S. Commodity Futures Trading Commission, in a transaction that could reach up to $550 million.

In addition, Payward acquired Reap Technologies, a Hong Kong-based stablecoin payments company, for $600 million; and in 2025, it acquired NinjaTrader, a retail futures platform, for $1.5 billion.

According to the disclosed information, the transaction for Magic Labs' wallet business is expected to be completed in the coming weeks, provided that regular closing conditions are met.

Additional information:The original company will continue to develop its licensed products independently under the Newton Labs brand, while its wallet business will be transferred to the Payward system.