Kraken to buy Magic Labs' wallet business — Magic itself becomes Newton Labs

Payward, Kraken's parent company, has agreed to acquire Magic Labs' embedded wallet business — the technology behind more than 60 million wallets built since 2018 for over 200,000 developers, Bitcoin.com News reports. The deal is structured as an asset sale: Magic Labs and Payward will remain separate, independent companies.

• Wallet business customers will transition to Payward Services, with the team behind that side of the business focused on serving them.
• Magic Labs itself is rebranding as Newton Labs, refocusing on the Newton Protocol — an authorization layer for onchain finance.
• Newton Labs' first product built on the Newton Protocol is VaultKit, a set of policies institutional vaults use to enforce compliance, security, and risk controls before a transaction settles.

This transition allows us to put our full energy behind Newton, the authorization layer for onchain finance.

Financial terms of the deal weren't disclosed. It's the latest in a string of M&A moves for Payward — just yesterday we covered how Kraken launched USD-settled bitcoin and ether options, expanding its product lineup beyond the core exchange. Buying Magic Labs' wallet business fits the same pattern — building out infrastructure, not just trading tools.

*None of this should be read as personalized investment advice.*