Payward, the parent company of Kraken, has acquired the embedded wallet business of Magic Labs, marking another significant step in its aggressive acquisition strategy this year. The deal brings an additional 50 million wallet creations onto Payward's platform, substantially enlarging its user base and technical capabilities.
A strategic move amid shifting crypto tech
Magic Labs, known for its wallet SDK powering tens of millions of wallets, is exiting the embedded wallet segment to rebrand as Newton Labs. The new entity shifts focus towards onchain finance innovations such as chain unification protocols designed to reduce liquidity fragmentation across multiple networks and AI-driven asset management tools. Newton Labs has signaled collaboration with Polygon’s AggLayer, aiming to improve cross-chain interoperability.
This acquisition complements Payward’s previous strategic buys this year, including Backed Finance, Magna, and a $550 million deal for Bitnomial. These moves collectively broaden Payward’s arsenal: Bitnomial adds regulated derivatives infrastructure, Backed Finance offers tokenized real-world assets, and Magna contributes token management and vesting solutions. With Magic Labs’ embedded wallet technology now part of the portfolio, Payward bolsters its end-to-end crypto infrastructure.
While the purchase price for Magic Labs’ wallet business remains undisclosed, the company’s ability to attract $52 million in funding led by PayPal Ventures shows the scale and institutional interest in its platform. Newton Labs' core projects do not involve token issuance directly tied to the acquisition.
