Overview
- The companies announced on Monday that Payward, Kraken’s parent, will acquire Magic Labs’ embedded wallet operations in an asset sale that keeps both firms independent.
- Magic Labs will rebrand as Newton Labs and focus on the Newton Protocol, an authorization‑before‑settlement layer that enforces identity, compliance, and risk checks before transactions execute.
- Payward said the wallet infrastructure being acquired powers over 60 million embedded wallets and has processed roughly $10 billion in stablecoin volume for about 200,000 developers.
- Wallet customers and integrations are scheduled to migrate to Payward Services after the deal closes, with Sean Li indicating service handover and customer support beginning August 1.
- Financial terms were not disclosed and the purchase follows Payward’s string of 2026 infrastructure moves, which could speed Payward’s product integration and shape future regulatory and commercial rollouts.