Kraken Parent Payward Acquires Magic Labs' Wallet Business
Payward, parent of Kraken, acquires Magic Labs' wallet-as-a-service division to enhance its B2B platform. The deal integrates non-custodial wallet tech, enabling businesses to offer self-custodied wallets. Magic Labs' infrastructure has powered over 60 million wallets and $10 billion in stablecoin transactions.
Quick Take
Payward acquires Magic Labs' wallet business to boost enterprise offerings.
Magic Labs tech powers 60M+ wallets and $10B in stablecoin transactions.
Acquisition enables businesses to integrate self-custodied wallets via Payward.
Magic Labs to focus on Newton platform post-acquisition.
Market Impact Analysis
BullishAcquisition strengthens Kraken's enterprise infrastructure, potentially increasing institutional adoption of crypto services.
Speculation Analysis
Key Takeaways
- Payward acquires Magic Labs' wallet business, adding non-custodial wallet tech to its B2B platform.
- Magic Labs' infrastructure has enabled 60M+ wallets and $10B in stablecoin transfers.
- Businesses will gain embedded self-custodied wallets, reducing reliance on third parties.
- Magic Labs shifts focus to Newton, its on-chain transaction authorization platform.
What Happened
Payward, the parent company of crypto exchange Kraken, announced the acquisition of Magic Labs' wallet-as-a-service business. The deal brings non-custodial wallet technology into Payward Services, the firm's B2B platform for trading, custody, and on/off-ramps. Businesses will soon be able to offer self-custodied wallets directly within their applications, eliminating the need for third-party providers. The transaction is set to close in the coming weeks, subject to standard conditions.
The Numbers
Magic Labs' infrastructure has already proven its scale, powering over 60 million non-custodial wallets for more than 200,000 developers. The platform has facilitated over $10 billion in stablecoin transactions, highlighting strong product-market fit. While financial terms were undisclosed, the acquisition underscores the growing valuation of enterprise-grade blockchain infrastructure.
Why It Happened
Demand for embedded, self-custodied wallet solutions is rising as businesses seek to offer crypto services without relying on centralized custodians. Payward aims to expand its enterprise footprint by providing a one-stop shop for on-chain financial services. This move capitalizes on the broader shift toward non-custodial finance and the tokenization of assets.
Broader Impact
The acquisition could accelerate institutional adoption of non-custodial wallets, setting a benchmark for exchange-backed B2B platforms. Competitors may feel pressure to enhance their own wallet infrastructure or pursue similar deals. Magic Labs' pivot to Newton also signals a trend toward specialized on-chain authorization tools.
What to Watch Next
- Integration timeline: Payward's rollout of the wallet tech into Payward Services after the deal closes.
- Newton's progress: Magic Labs' focus on the Newton platform and its adoption among developers.
- Competitor moves: Responses from other exchange-linked B2B arms like Binance Institutional or Coinbase Cloud.
This article is for informational purposes only and does not constitute financial advice.
Always late to trends?
Join for the latest news, insights & more.
Disclaimer: Bytewit is an independent media outlet that delivers news, research, and data.
© 2026 Bytewit. All Rights Reserved. This article is for informational purposes only.
