Payward Buys Magic Labs Wallet Tech, Adds 60M-Wallet Platform

Payward, the parent company of crypto exchange Kraken, has agreed to acquire Magic Labs’ wallet-as-a-service business. The deal adds embedded, non-custodial wallets to Payward Services, the company’s B2B infrastructure platform. Financial terms were not disclosed.

Magic’s technology has powered more than 60 million wallets and processed over $10 billion in stablecoin volume. More than 200,000 developers have used its products, according to the announcement. The acquisition is expected to close within weeks, subject to customary conditions.

Payward Services gives corporate clients a single connection to crypto trading, custody, tokenized assets, derivatives, and services for moving funds between traditional currencies and digital assets. Adding Magic’s wallet software will let those partners offer self-custody products without relying on several separate technology providers. Businesses could use the same platform to provide wallets alongside trading and settlement services.

“Embedded wallets are becoming foundational infrastructure for every onchain product,” Payward Chief Commercial Officer Mark Greenberg said. He added that the deal would let Payward offer exchange and custody services alongside wallet technology through one integrated system.

Magic’s infrastructure combines a trusted execution environment-based signing system with an embedded integration layer and developer software. The system allows companies to issue and manage non-custodial wallets while users retain control of their assets.