Payward, the parent company of Kraken, has acquired the embedded wallet business of Magic Labs. The deal, announced this week, is the latest in a string of acquisitions for Payward as it pushes deeper into crypto infrastructure. The move could reshape how wallets are integrated into exchanges and other platforms, potentially driving further consolidation in the industry.
An accelerating M&A spree
This acquisition is part of Payward's accelerating M&A spree. The company has been on a buying streak, snapping up firms that fill gaps in its technology stack. Magic Labs' embedded wallet business is the latest piece of that puzzle.
What Magic Labs brings
Magic Labs' embedded wallet business lets companies add crypto wallets directly into their apps without building from scratch. For Payward, that means Kraken can offer a more seamless wallet experience — and potentially sell that capability to other platforms.
Vertical integration and market consolidation
The deal could reshape crypto infrastructure by enhancing vertical integration. Instead of relying on third-party wallet providers, Payward now owns the technology. That may drive market consolidation, as other exchanges and wallet firms scramble to keep up. The acquisition underscores the trend toward vertical integration in crypto, where exchanges are building or buying the tools to control the full user experience.
