Magic Labs has agreed to sell its embedded wallet business to Payward, the parent company of Kraken.
The deal is set to close in the coming weeks, subject to standard closing conditions. The financial terms were not disclosed; however, Magic Labs CEO Sean Li stated that the acquisition will be completed via an asset sale.
Magic Labs, whose electronic wallet business has been a point of contention, has released over 60 million such wallets, used by notable brands like Polymarket and WalletConnect.
According to Li, the company will operate independently from Payward, although customer service will be handled through Payward starting August 1.
Payward plans to integrate the electronic wallet technology to expand its Payward Services product line.
Magic Labs stated it is exiting the wallet development business to focus on the Newton protocol, its authorization layer for blockchain financial operations.
"This transition allows us to fully focus our efforts on Newton, the authorization layer for blockchain financial operations, while the wallet development business moves to a team committed to serving our customers," Li said.
As part of the transition, the company will be renamed Newton Labs.
Today we announced two decisions: 1) we sold our electronic wallet business to Payward, the developer behind Kraken. And 2) Magic Labs becomes Newton Labs.
— Sean Li (@seanli) July 27, 2026
Bringing customers from around the world was the first part of our mission. Bringing capital is the second.
Here's a video explaining why. 👇 https://t.co/UhU7GLErKC pic.twitter.com/4ezZfcoVkX
Payward's Acquisitions Continue
The Magic Labs deal extends the series of acquisitions made by Kraken's parent company in 2026.
Payward completed the acquisition of Reap Technologies Holdings Limited ("Reap"), a Hong Kong-based stablecoin payments and card issuance company, as first announced on May 7.
That deal was structured as a cash and stock sale valued at $600 million.
In April, Payward also agreed to pay up to $550 million in cash and stock for Bitnomial, a U.S. derivatives platform that holds all three licenses required to operate a full-fledged derivatives business, as Cryptopolitan reported.
The deal reportedly valued Payward at $20 billion.
While Payward continues to seek acquisition opportunities for crypto companies, Kraken's previously planned public listing remains on hold.
In November, the company filed a draft S-1 registration statement with the U.S. Securities and Exchange Commission for a potential listing on a U.S. market. However, in March, this move was paused as Kraken cited challenging market conditions.
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