Magic Labs has agreed to promote its embedded pockets enterprise to Kraken’s father or mother firm, Payward.
The deal might be closed within the coming weeks, topic to customary closing situations. No determine was talked about; nonetheless, Magic Labs’ CEO Sean Li stated the acquisition might be via an asset sale.
Magic Labs’ pockets enterprise in query has created over 60 million wallets and is utilized by widespread names like Polymarket and WalletConnect.
The enterprise will function independently of Payward, though clients might be serviced by Payward, beginning August 1st, in line with Li.
Payward plans to combine the pockets expertise to broaden its Payward Providers’ product suite.
Magic Labs stated it’s parting with the pockets enterprise to deal with Newton Protocol, its authorization layer for on-chain finance.
“This transition permits us to place our full vitality behind Newton, the authorization layer for onchain finance, whereas the pockets enterprise strikes to a staff dedicated to serving our clients,” stated Li.
As a part of the transition, the corporate is rebranded to Newton Labs.
As we speak we introduced two choices: 1) we’ve offered our pockets enterprise to Payward, the corporate behind Kraken. And a pair of) Magic Labs is changing into Newton Labs.
Onboarding the world was half one among our mission. Securing the capital that follows is an element two.
Right here’s a video on why. 👇 https://t.co/UhU7GLErKC pic.twitter.com/4ezZfcoVkX
— Sean Li (@seanli) July 27, 2026
Payward’s procuring spree continues
The Magic Labs’ deal extends a run of acquisitions made by Kraken’s father or mother firm thus far in 2026.
Payward closed its acquisition of Reap Applied sciences Holdings Restricted (“Reap”), a Hong Kong stablecoin funds and card-issuing agency it had first introduced on Might 7.
The transaction was structured as a cash-and-stock sale, price a $600 million.
In April, Payward had additionally agreed to pay as much as $550 million in money and inventory for Bitnomial, a US derivatives platform that holds all three licenses required to run a full-stack derivatives enterprise, as Cryptopolitan reported.
The deal was stated to have valued Payward at $20 billion.
Whereas Payward has continued to buy crypto companies, earlier plans to take Kraken public stay halted.
The corporate filed a draft S-1 registration assertion with the SEC in November for a possible U.S. itemizing. Nonetheless, the transfer was halted in March, with Kraken citing tough market situations.