Payward Acquires Magic Labs Wallet Business, Launches Newton Protocol

Magic Labs has sold its embedded wallet business to Payward, the parent company of cryptocurrency exchange Kraken. The asset sale transfers wallet operations to Payward Services, while Magic Labs rebrands as Newton Labs.

This move shifts Magic Labs' focus towards onchain finance infrastructure and expands Payward's digital asset platform. Since launching in 2018, Magic Labs has created over 60 million embedded wallets and supports more than 200,000 developers across consumer and institutional applications.

The Newton Protocol is a key part of this strategy, applying compliance, security, identity, and risk controls before blockchain transactions reach settlement. The protocol's first product, VaultKit, enables composable policy enforcement for institutional digital asset custody.