Payward, the parent company of the Kraken cryptocurrency exchange, has agreed to buy Magic Labs' wallet-as-a-service business. The deal brings embedded, non-custodial wallet technology into Payward's infrastructure platform. Magic Labs' wallet-as-a-service has been used to create more than 60 million wallets. Newton Labs, the seller, is offloading the Magic Wallet business to focus entirely on onchain authorization.
Why the acquisition matters
Non-custodial wallets let users control their own private keys, a feature increasingly demanded by crypto traders and developers. By adding this capability, Payward can offer wallet infrastructure to other platforms or integrate it directly into Kraken's services. The move signals a push toward self-custody solutions within a major exchange's parent company.
What Magic Labs built
Magic Labs' wallet-as-a-service product allowed companies to embed wallet creation into their apps without managing the underlying blockchain complexity. The technology powered more than 60 million wallets, according to the company. That scale suggests a broad user base across multiple applications.
Newton Labs' new focus
Newton Labs, the entity selling the Magic Wallet business, is pivoting to onchain authorization. That area deals with verifying transactions and identities directly on a blockchain, a different slice of the crypto infrastructure market. The sale lets Newton Labs concentrate resources on that narrower goal.
Financial terms of the acquisition were not disclosed. The deal is expected to close in the coming months, pending standard regulatory reviews.
