Payward, the parent company behind crypto exchange Kraken, agreed to acquire the wallet-as-a-service business unit from Magic Labs on Monday, July 27, 2026. The deal brings infrastructure that has generated 60 million non-custodial wallets and settled more than $10 billion in stablecoin transactions under its wing. Both companies have kept the financial terms of the transaction confidential.
The move aims to integrate Magic Labs’ wallet technology directly into Payward Services. This division serves as Kraken’s B2B services arm, managing crypto trading, custody, tokenization, and fiat on- and off-ramps for institutional clients.
Eliminating Third-Party Dependencies
At the core of the acquired technology is its embedded wallet functionality. This feature allows businesses to offer self-custody options directly within their own applications. Users no longer need to be redirected or forced to download third-party wallet apps to interact with digital assets.
The scale of the infrastructure changing hands is substantial. Magic Labs’ system has been utilized by more than 200,000 software developers worldwide. Payward framed the acquisition as a direct response to market trends, addressing growing corporate demand for turnkey, reliable institutional-grade onchain financial infrastructure.
A New Path for the Seller
The transfer of assets and technology is scheduled to close within the coming weeks, subject to customary closing conditions. Notably, parting with its flagship product that has served tens of millions of wallets does not mean Magic Labs is exiting the crypto space.
Following the sale, the Magic Labs team stated it will channel all resources and focus into developing Newton. The new project is designed as a platform network that helps users and applications authorize and verify onchain transactions. Newton’s primary focus is building a verification security framework that operates independently without relying on centralized intermediaries.
Kraken’s move highlights an ongoing market trend: major crypto exchanges are no longer content with simply serving as retail trading venues. They are racing to acquire core infrastructure to become technology providers for other businesses. For end users, this shift means blockchain interactions will increasingly feel less complicated - becoming as seamless as signing up for a conventional mobile app account.
Reported by Cointelegraph.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
