Kraken Parent Secures Embedded Wallet Business Amid Crypto Infrastructure Consolidation

Payward, the parent company of Kraken, has acquired Magic Labs' embedded wallet business through an asset purchase. The acquisition brings the wallet technology in-house under a structure that Payward can control and build on directly.

The deal was structured as an asset purchase, meaning Payward acquired the wallet business itself rather than absorbing Magic Labs as a company. This distinction allows both sides to move cleanly: Payward gets the product and underlying infrastructure, while Magic Labs will rebrand as Newton Labs and redirect its focus to developing Newton Protocol.

The acquisition of Magic Labs' embedded wallet business is a significant development in the crypto infrastructure landscape. The wallet technology had attracted notable investor backing, including a $52 million round led by PayPal Ventures in 2023. However, the financial terms of the acquisition were not disclosed, leaving questions open about whether this was a premium acquisition or a strategic sale at a discount.