“We’re excited to bring Magic Labs’ wallet infrastructure into Payward Services,” said Sean Li, CEO of Newton Labs, the rebranded entity formerly known as Magic Labs. This move means that from August 1, Payward will take over servicing the millions of users relying on Magic’s embedded wallet solutions without disrupting current integrations.
Payward, the parent company of crypto exchange Kraken, announced on July 27 that it has agreed to acquire Magic Labs’ wallet-as-a-service business through an asset purchase. The deal focuses on Magic’s embedded wallet technology rather than acquiring the whole company. Financial terms were not made public, and the transaction is expected to finalize in the coming weeks after satisfying usual closing conditions.
Magic Labs’ technology has powered over 60 million non-custodial wallets since its 2018 launch, handling more than $10 billion in stablecoin transactions and serving 200,000 developers. Integrating this infrastructure into Payward Services will expand Kraken’s B2B offerings, which already include trading, custody, tokenized assets, derivatives, and fiat-to-crypto payment solutions. The addition allows businesses to embed self-custody wallets directly within their applications, avoiding reliance on separate third-party wallet providers. Magic’s stack includes a trusted execution environment signing system, embedded integration layers, and a developer SDK, all designed for users to maintain control of their assets.
Meanwhile, Magic Labs has renamed itself Newton Labs and is shifting focus to the Newton Protocol, which entered mainnet beta on June 23. The protocol enforces policy checks on transactions before they settle, creating cryptographic records for security, compliance, and risk management. Its first application, VaultKit, helps decentralized finance vault operators implement these policy controls, supporting Ethereum and Base networks with integrations like RedStone. This strategic pivot positions Newton Labs on the forefront of on-chain transaction governance.
