Kraken parent Payward acquires Magic Labs' embedded wallet business

What's the deal? PaywardDealroom has a profile for this one. Try Dealroom →, the parent company of crypto exchange Kraken, has signed a definitive agreement to acquire the wallet-as-a-service business of Magic Labs, folding embedded non-custodial wallet infrastructure into its enterprise platform. Deal terms were not disclosed.

What Magic brings: Magic's infrastructure has powered more than 60 million wallets and processed over $10 billion in stablecoin volume across 200,000+ developers, using trusted execution environment (TEE)-based signing, embedded wallet integrations and developer SDKs that let businesses deploy self-custodial wallets without building the stack from scratch.

Why it matters: The technology will be integrated into Payward Services, Payward's B2B infrastructure platform that already spans crypto trading, custody, tokenised assets, fiat on- and off-ramps and derivatives. "Embedded wallets are becoming foundational infrastructure for every onchain product," said Mark Greenberg, Chief Commercial Officer of Payward. Following the sale, Magic Labs plans to rebrand as Newton Labs to focus on onchain finance infrastructure.

The deal continues Payward's run of infrastructure acquisitions, adding embedded wallets alongside earlier moves into derivatives, tokenisation and payments.

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