Kraken parent Payward acquires Magic Labs’ wallet business

Kraken parent Payward acquires Magic Labs’ wallet business

The deal brings wallet technology to Payward’s enterprise platform, potentially reducing the number of infrastructure providers businesses need to integrate with.

Payward, the parent company of crypto exchange Kraken, has agreed to acquire the wallet-as-a-service business of Magic Labs, expanding its enterprise infrastructure offering as demand for onchain financial services continues to grow.

Payward said Monday the acquisition will allow it to integrate Magic Labs’ non-custodial wallet technology into Payward Services, its business-to-business platform for crypto trading, custody, tokenized assets and fiat on- and off-ramps. Financial terms of the deal were not disclosed.

The addition of embedded wallets allows businesses to offer self-custodied wallets directly within their applications instead of relying on third-party wallet providers, giving business clients a broader suite of blockchain infrastructure through a single integration.

Magic Labs said its infrastructure has been used to create more than 60 million non-custodial wallets for over 200,000 developers and has facilitated more than $10 billion in stablecoin transactions.

The companies expect the transaction to close in the coming weeks, subject to customary closing conditions.

Following the sale, Magic Labs said it will focus on Newton, a platform that helps users and applications securely authorize and verify onchain transactions without relying on centralized intermediaries.

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