Kraken’s subsidiary Payward has completed the acquisition of Magic Labs’ wallet-as-a-service infrastructure, which currently supports around 60 million wallets and handles $10 billion in stablecoin volume. This platform powers a significant portion of user wallets, highlighting its substantial presence in the crypto ecosystem.
Following the deal, Magic Labs has announced a rebrand to Newton Labs, signaling a strategic shift to concentrate on developing its core protocol technology. The move marks a clear separation between the company’s service platform and its protocol ambitions.
The acquired wallet infrastructure has been central to many services, facilitating smooth wallet management and stablecoin transactions. Its integration into Kraken’s broader offerings is expected to strengthen Payward’s position in the wallet services market, potentially driving higher adoption and operational efficiencies.
On the market side, the news has been met with muted reaction, as traders and investors calibrate the long-term implications for Kraken amid competitive pressures in crypto custody and wallet solutions.
