Payward Acquires Magic Labs Wallet Unit to Bolster Kraken’s B2B Infrastructure

Woofun AI reports that Payward, the parent entity of crypto exchange Kraken, has finalized an agreement to acquire the wallet-as-a-service business from Magic Labs. This strategic acquisition is designed to expand Payward’s enterprise infrastructure capabilities, directly addressing the escalating demand for onchain financial services within the broader digital asset ecosystem.

The integration strategy, announced on Monday, centers on embedding Magic Labs’ non-custodial wallet technology into Payward Services. This business-to-business platform currently supports crypto trading, custody, tokenized assets, and fiat on- and off-ramps. By incorporating embedded wallets, the expanded suite enables business clients to offer self-custodied wallets directly within their applications.

This shift reduces reliance on third-party wallet providers, delivering a more comprehensive blockchain infrastructure through a single integration point.

Per Woofun AI, the financial terms of the transaction remain undisclosed, yet the operational scale of the acquired unit is significant. Magic Labs’ infrastructure has facilitated the creation of over 60 million non-custodial wallets for more than 200,000 developers.

Furthermore, this network has processed in excess of $10 billion in stablecoin transactions, underscoring the substantial user base and transaction volume now being absorbed into the Kraken ecosystem.

The parties anticipate closing the deal in the coming weeks, contingent upon customary closing conditions. Post-acquisition, Magic Labs will redirect its focus toward Newton, a platform enabling users and applications to securely authorize and verify onchain transactions. This pivot eliminates the need for centralized intermediaries, marking a distinct strategic separation between wallet infrastructure and transaction verification services.