Magic Labs has agreed to sell its combined wallet business to Kraken’s parent company, Payward.
The transaction will close in the coming weeks, subject to customary closing conditions. He did not mention any number. However, Magic Labs CEO Shawn Lee said the acquisition would be through an asset sale.
Magic Labs’ wallet business has created more than 60 million wallets and is used by popular names like Polymarket and WalletConnect.
The company will operate independently from Payward, although customers will be served by Payward, starting August 1, according to Lee.
reward Plans To integrate wallet technology to expand its Payward Services product suite.
Magic Labs said it is divesting from its wallet business to focus on the Newton Protocol, its licensing layer for cross-chain financing.
“This shift allows us to put our full energy behind Newton, the licensing layer for onchain finance, while the wallet business transitions to a team committed to serving our customers,” Lee said.
As part of the transition, the company was rebranded as Newton Labs.
Today we announced two decisions: 1) We have sold our wallet business to Payward, the company behind Kraken. and 2) Magic Labs becomes Newton Labs.
Rehabilitating the world was just one part of our mission. Securing capital is the next part.
Here’s a video about why. 👇 https://t.co/UhU7GLERKC pic.twitter.com/4ezZfcoVkX
– Sean Li (@seanli) July 27, 2026
The Payward shopping spree continues
The Magic Labs deal expands a string of acquisitions made by Kraken’s parent company so far in 2026.
Payward has completed its acquisition of Reap Technologies Holdings Limited (“Reap”), the Hong Kong-based stablecoin payments and card issuing company that it first announced on May 7.
The deal was structured as a cash and stock sale worth $600 million.
In April, Payward also agreed to pay up to $550 million in cash and shares for Bitnomial, a US derivatives platform that holds all three licenses required to operate a full financial derivatives business, like Cryptopolitan. I mentioned.
The deal was said to value Payward at $20 billion.
While Payward has continued to shop for cryptocurrency companies, previous plans to acquire Kraken remain on hold.
The company filed a draft S-1 registration statement with the Securities and Exchange Commission in November for a potential U.S. listing. However, the move was halted in March, due to Kraken’s difficult market conditions.
Don’t just read cryptocurrency news. Understand that. Subscribe to our newsletter. It’s free.
