Payward Bolsters Wallet Capabilities with Magic Labs Acquisition

Kraken's parent company, Payward, has acquired Magic Labs' embedded wallet business in its latest move to solidify its position in the rapidly evolving cryptocurrency landscape.

The deal hands Payward a ready-made team and technology stack that can accelerate Kraken's non-custodial product roadmap. Embedded wallet solutions allow users to interact with blockchain applications without managing separate seed phrases or external wallet software, making it an attractive feature for exchanges looking to reduce friction.

Magic Labs had raised more than $80 million in venture funding, including a $52 million round led by PayPal Ventures in 2023, to build this kind of infrastructure. The acquisition suggests that Payward is not content to rely solely on in-house development and is instead buying expertise and intellectual property to compete with other major platforms.