Magic Labs has agreed to sell its embedded wallet business to Kraken’s parent company, Payward. The deal will be closed in the coming weeks, subject to customary closing conditions. No figure
Magic Labs has agreed to sell its embedded wallet business to Kraken’s parent company, Payward.
The deal will be closed in the coming weeks, subject to customary closing conditions. No figure was mentioned; however, Magic Labs’ CEO Sean Li said the acquisition will be through an asset sale.
Magic Labs’ wallet business in question has created over 60 million wallets and is used by popular names like Polymarket and WalletConnect.
The business will operate independently of Payward, although customers will be serviced by Payward, starting August 1st, according to Li.
Payward plans to integrate the wallet technology to expand its Payward Services’ product suite.
Magic Labs said it’s parting with the wallet business to focus on Newton Protocol, its authorization layer for on-chain finance.
“This transition allows us to put our full energy behind Newton, the authorization layer for onchain finance, while the wallet business moves to a team committed to serving our customers,” said Li.
As part of the transition, the company is rebranded to Newton Labs.
Today we announced two decisions: 1) we've sold our wallet business to Payward, the company behind Kraken. And 2) Magic Labs is becoming Newton Labs.Onboarding the world was part one of our mission. Securing the capital that follows is part two.Here's a video on why. 👇 https://t.co/UhU7GLErKCpic.twitter.com/4ezZfcoVkX
— Sean Li (@seanli) July 27, 2026
The Magic Labs’ deal extends a run of acquisitions made by Kraken’s parent company so far in 2026.
Payward closed its acquisition of Reap Technologies Holdings Limited (“Reap”), a Hong Kong stablecoin payments and card-issuing firm it had first announced on May 7.
The transaction was structured as a cash-and-stock sale, worth a $600 million.
In April, Payward had also agreed to pay up to $550 million in cash and stock for Bitnomial, a US derivatives platform that holds all three licenses required to run a full-stack derivatives business, as Cryptopolitan reported.
The deal was said to have valued Payward at $20 billion.
While Payward has continued to shop for crypto businesses, earlier plans to take Kraken public remain halted.
The company filed a draft S-1 registration statement with the SEC in November for a potential U.S. listing. However, the move was halted in March, with Kraken citing difficult market conditions.
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