Magic Labs has agreed to sell its embedded wallet business to Payward, the parent company of Kraken, marking another move in Payward’s acquisition spree this year. Although the financial terms of the deal remain undisclosed, Magic Labs CEO Sean Li confirmed it will be structured as an asset sale and is expected to close in the coming weeks, pending customary approvals.
Wallet Business with Significant Reach
The wallet platform sold by Magic Labs has over 60 million wallets created and serves notable clients such as Polymarket and WalletConnect. Despite the transfer, the wallet unit will continue operating independently under Payward’s ownership, with customer services transitioning to Payward starting August 1. Payward intends to incorporate the wallet technology into its Payward Services product lineup, further broadening its offerings in the crypto ecosystem.
Strategic Focus Shift and Rebranding
For Magic Labs, divesting the wallet business allows a sharper focus on its Newton Protocol, an authorization layer designed for on-chain finance. To reflect this pivot, the company is rebranding itself as Newton Labs. "This transition lets us devote full energy to Newton, while the wallet business is entrusted to a team dedicated to customer service," Li explained. This move aligns with Magic Labs’ mission evolution, moving from onboarding users to securing capital within blockchain finance.
Payward’s acquisition of Magic Labs’ wallet unit extends its aggressive growth pattern in 2026. Earlier this year, Payward completed a $600 million cash-and-stock acquisition of Reap Technologies, a Hong Kong-based stablecoin payments and card issuer. In April, it agreed to pay up to $550 million for Bitnomial, a licensed US derivatives platform. These deals collectively value Payward at around $20 billion, underscoring its ambition to build a full crypto financial services portfolio.
This article is for informational purposes and does not constitute financial advice.
