Payward buys Magic Labs wallet business for onchain push

Payward has agreed to acquire Magic Labs' wallet infrastructure business, adding embedded non-custodial wallets to Payward Services.

The deal covers Magic Labs' wallet-as-a-service business, which has supported more than 60 million wallets and over USD $10 billion in stablecoin volume for more than 200,000 developers, according to Payward. The business will become part of Payward's business-to-business platform, which sells financial infrastructure to partners.

Payward is the infrastructure group behind products including Kraken, NinjaTrader, Breakout, xStocks, Bitnomial and CF Benchmarks. Its Payward Services unit offers a single connection for products such as crypto trading, custody, tokenised assets, on- and off-ramps, and derivatives.

Adding Magic Labs' wallet technology expands Payward's embedded wallet services for businesses that want to offer self-custody and onchain products through a single supplier. The wallet business includes a trusted execution environment-based signing system, an embedded integration layer and a developer software development kit.

Platform expansion

The acquisition reflects a broader push by infrastructure providers to bundle more of the digital asset stack into a single platform. Embedded wallets have become a core component of many onchain products because they let users access blockchain-based services without relying on separate wallet providers.

After the deal closes, the wallet technology will be integrated into the Payward Services product suite. The addition is intended to give business customers a broader onchain offering through one provider, rather than requiring them to work with multiple vendors.

"Embedded wallets are becoming foundational infrastructure for every onchain product. Magic Labs' technology lets us bring that layer in-house and offer partners a complete, integrated stack - exchange, custody, and now wallets - without stitching together multiple providers," said Mark Greenberg, Chief Commercial Officer, Payward.

The sale also marks a change in direction for Magic Labs, which now refers to itself as Newton Labs. It will focus on Newton, which it describes as an authorisation layer for onchain finance.

Shift in focus

Newton Labs said the sale allows it to concentrate on tools designed to apply compliance, identity, security and risk policies before transactions settle onchain. Payward will take over the commercial wallet infrastructure business, while Newton Labs focuses on its newer protocol work.

"This transition allows us to put our full energy behind Newton, the authorisation layer for onchain finance, while the wallet business moves to a team committed to serving our customers," said Li.

Founded in 2018, Magic Labs built its name around embedded wallet infrastructure for developers and businesses. The company says its systems have been used to create more than 60 million wallets, giving it a sizeable footprint in a market where easier onboarding and self-custody tools are seen as important for wider use of blockchain-based products.

For Payward, the acquisition extends a strategy built around shared infrastructure across several brands and services. Its architecture is designed to support multiple products and customer segments on common liquidity, settlement, risk and compliance systems.

That model has become more common as crypto groups look for steadier business lines outside retail trading. Selling technology and infrastructure to other companies can provide a broader revenue base, particularly as institutional and corporate interest in tokenised assets, stablecoin settlement and onchain financial products grows.

The transaction is subject to customary closing conditions and is expected to complete in the coming weeks. Once completed, Payward will own a wallet infrastructure business that has processed more than USD $10 billion in stablecoin volume.