Kraken parent Payward acquires Magic Labs’ wallet business
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Payward, the parent company of the cryptocurrency exchange Kraken, has agreed to acquire the wallet-as-a-service business from Magic Labs. This acquisition will expand Payward's enterprise infrastructure offerings amid growing demand for onchain financial services. The deal will enable Payward to integrate Magic Labs' non-custodial wallet technology into its existing B2B platform, Payward Services, which supports crypto trading, custody, tokenized assets, and fiat on- and off-ramps. Financial details of the transaction were not disclosed.
By incorporating embedded wallets, Payward aims to allow its business clients to offer self-custodied wallets directly within their applications, reducing reliance on third-party wallet providers and potentially consolidating blockchain infrastructure needs under a single integration. Magic Labs reported that its infrastructure has facilitated the creation of over 60 million non-custodial wallets by more than 200,000 developers, with stablecoin transactions exceeding $10 billion.
The transaction is expected to close within the next few weeks, pending customary conditions. After the sale, Magic Labs plans to focus on Newton, a platform designed to help users and applications securely authorize and verify onchain transactions without depending on centralized intermediaries. This strategic shift highlights the companies' respective focuses on expanding enterprise crypto solutions and maintaining decentralized transaction verification.