Kraken Parent Acquires Wallet Business with 60 Million Users

Kraken's parent company, Payward, has made a significant move in the crypto space by acquiring Magic Labs' wallet-as-a-service business. The deal was announced on July 27 and is expected to close within several weeks, subject to customary closing conditions.

The acquisition adds infrastructure that has powered over 60 million wallets and processed more than $10 billion in stablecoin volume for over 200,000 developers. Magic Labs will rebrand as Newton Labs and focus on its policy and authorisation system for onchain transactions, known as Newton Protocol.

Patient plans to integrate Magic's technology into Payward Services, its infrastructure platform for banks, fintech companies, exchanges, and onchain applications. The existing platform provides trading, custody, tokenised assets, derivatives, and fiat-to-crypto payment services through one integration. With the addition of Magic's wallet layer, partners will be able to add self-custody wallets without managing several separate infrastructure providers.