Payward, the parent company of cryptocurrency exchange Kraken, has signed a definitive agreement to acquire the embedded wallet business unit of Magic Labs, strengthening its Web3 infrastructure offerings for developers and institutional clients. The asset acquisition marks another strategic move by the company as it continues expanding its presence across multiple segments of the digital asset ecosystem.
Under the terms of the agreement, Payward and Magic Labs will continue operating as separate legal entities following the transaction. Users of the embedded wallet platform will transition to Payward Services, while the remaining operations of Magic Labs will be rebranded and continue operating commercially under the name Newton Labs.
The acquisition transfers Magic Labs’ embedded wallet business to Payward Services, reinforcing Payward’s Web3 infrastructure by adding technology that has powered more than 60 million digital wallets and supports over 200,000 developers.
Since its establishment in 2018, Magic Labs has developed embedded wallet technology that enables developers to integrate digital asset custody capabilities into consumer and institutional applications without requiring users to manage complex wallet setups. According to company information, the technology has facilitated the creation of more than 60 million digital wallets and serves as the core infrastructure used by more than 200,000 developers worldwide.
The acquisition significantly expands Payward Services’ capabilities by incorporating wallet infrastructure that supports frictionless custody solutions across a broad range of blockchain applications. The move aligns with the company’s broader strategy of building an integrated ecosystem that serves both enterprise customers and software developers seeking Web3 infrastructure.
Newton Labs Shifts Focus to Decentralized Infrastructure
Following the completion of the transaction, Newton Labs will concentrate exclusively on developing the Newton Protocol, an authorization layer designed to enforce compliance, security, and risk management requirements before blockchain transactions are finalized. The protocol entered its mainnet beta testing phase in June 2026, marking the organization’s transition into a dedicated provider of decentralized infrastructure.
The first product introduced on the Newton Protocol is VaultKit, a modular platform developed for institutional-grade digital asset vaults. According to the company, the system has been designed to execute pre-settlement policies covering real-world assets, stablecoins, and automated financial services powered by smart agents. By applying compliance and security controls before transactions are settled on-chain, the platform seeks to improve operational oversight for institutional users while supporting emerging blockchain-based financial applications.
Magic Labs is becoming Newton Labs.
Our wallet business, 60M+ wallets strong, has a new home at @Payward @krakenfx.
Our focus is now: the authorization layer for onchain finance. Follow @newton_xyz for more.
Read the full story by @TheBlockCo: https://t.co/CL8RCkF4F2
— Magic Labs (@magic_labs) July 27, 2026
Series of Acquisitions Supports Broader Expansion
The wallet acquisition represents the latest in a series of strategic transactions completed by Payward to strengthen its corporate offerings. Earlier this year, the company finalized the acquisition of CFTC-licensed derivatives exchange Bitnomial in a deal valued at up to $550 million in cash and stock. That transaction followed a separate $600 million agreement to acquire Hong Kong-based Reap Technologies, a company specializing in stablecoin payment solutions.
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/UhU7GLErKC pic.twitter.com/4ezZfcoVkX
— Sean Li (@seanli) July 27, 2026
The company’s expansion strategy also includes the 2025 acquisition of retail futures trading platform NinjaTrader for $1.5 billion. Industry reports have indicated that these transactions form part of a broader vertical integration strategy designed to combine cryptocurrency spot trading, derivatives markets, payment infrastructure, and digital wallet services under a unified corporate structure.
The latest transaction complements Payward’s recent acquisitions of Bitnomial, Reap Technologies, and NinjaTrader, reflecting a strategy to integrate trading, payments, derivatives, and wallet infrastructure into a comprehensive digital asset ecosystem.
The transition of the embedded wallet business to Payward Services is expected to be completed after customary closing conditions are satisfied. Once finalized, users of the wallet infrastructure will begin receiving services through Payward while Newton Labs continues its independent development of decentralized infrastructure technologies centered on the Newton Protocol.
The agreement further strengthens Payward’s position in the Web3 infrastructure market by expanding its developer-focused services and institutional capabilities while allowing Newton Labs to concentrate on compliance-driven decentralized infrastructure.
