What to know:
- Payward acquires Magic Labs wallet business to expand enterprise blockchain infrastructure services globally.
- Kraken parent strengthens Web3 infrastructure with large-scale wallet technology integration.
- Payward targets institutional blockchain adoption through unified crypto infrastructure solutions.
Payward, the parent company of crypto exchange Kraken, has agreed to acquire the wallet-as-a-service business of Magic Labs, expanding its enterprise blockchain infrastructure capabilities as demand for onchain financial products continues to accelerate.
The acquisition will integrate Magic Labs’ non-custodial wallet technology into Payward Services, the company’s B2B platform supporting crypto trading, custody, tokenized assets, derivatives, and payment solutions.
The acquisition is expected to conclude within the coming weeks, pending customary closing requirements, while the financial terms of the transaction have yet to be disclosed.
Fundamentally, what this move by the company represents is the firm’s intention to build an interconnected platform that would allow businesses to create digital assets without reliance on a variety of outside suppliers.
Source: CoinDesk’s X Post
Also Read: Kraken Parent Payward Boldly Seeks 2026 Federal Bank Charter
Payward Strengthens Enterprise Blockchain Offering
Payward Services provides financial services critical to businesses such as liquidity, custody services, compliance software, settlement services, and digital asset services.
By incorporating embedded wallet services, Payward aims to provide partners with a full in-app solution in building their own blockchain with self-custody through their application.
With the help of Magic Labs, the wallet infrastructure can be integrated in such a way that non-custodial wallets can be placed directly within the company’s platform without the need for downloading a wallet separately by the user.
With the advent of new fintech, game, payment, and tokenized asset businesses, this feature has become increasingly important.
“Embedded wallets are becoming foundational infrastructure for every on-chain product,” stated Mark Greenberg, CCO at Payward. Greenberg pointed out that the tech from Magic Labs would allow Payward to weave together its exchanges, custody, and wallet solutions to create one unified platform.
Magic Labs Brings Large-Scale Wallet Technology
Magic Labs has created an underlying wallet framework for Web3, currently powering over 60 million non-custodial wallets, supporting over 200,000 developers, and managing over $10 billion worth of stablecoin transactions through various blockchain applications.
The technology incorporates TEE-based signing, embedded wallet features, and a developer SDK to enable companies to develop blockchain wallets at scale. The deal comes amid the growing significance of embedded wallets, which makes it easier for users to engage with apps that they trust.
What’s Next in the Future?
This is an indication of increasing competition among companies in the crypto-infrastructure industry as they seek platforms that would help them embrace blockchain technology.
With increased tokenization, use of stablecoins, and development in the decentralized finance system, there is a need for a platform that has everything in one package.
Post-acquisition, Magic Labs will focus on Newton, which is an ecosystem designed to improve authorizations and security of transactions on the blockchain.
Meanwhile, Payward will incorporate wallet services in their products, enabling companies to create blockchain-based financial instruments faster while reducing dependence on disparate infrastructure vendors.
Also Read: Kraken Parent Payward Reports Strong Q1 Revenue Growth
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