Magic Labs Sells Wallet Business to Kraken Parent Payward

Wallets Created

60M

The number of wallets created on Magic Labs' infrastructure since 2018.

Developers Supported

200,000

The number of developers utilizing Magic Labs' wallet infrastructure.

§ 01 Executive Snapshot

What: Magic Labs sold its wallet business to Payward, the parent company of Kraken, and is rebranding as Newton Labs.
Who: Key players include Magic Labs, Payward (Kraken's parent company), and co-founder Sean Li.
Why it matters: This acquisition signifies a strategic pivot for Magic Labs towards the Newton Protocol, focusing on compliance and security in DeFi applications.

Magic Labs sold its wallet business to Payward, Inc., with the deal classified as an asset sale.
The wallet business will transition to Payward on August 1, 2026, with no action required from current customers.
Magic Labs created over 60 million wallets since launching its infrastructure in 2018, supporting more than 200,000 developers across various projects.

The acquisition by Payward reflects a trend of consolidation in the crypto wallet space, as companies seek to enhance their service offerings and infrastructure.
Magic Labs' transition to Newton Labs and its focus on the Newton Protocol highlights the growing importance of compliance and risk management in the evolving DeFi landscape.

The immediate consequence of this sale may strengthen Payward's wallet capabilities and expand its customer base in the crypto ecosystem.
Long-term, Newton Labs' focus on the authorization layer for on-chain finance could position it as a critical player in ensuring compliance and risk management within DeFi applications.

One potential risk includes regulatory scrutiny regarding the compliance mechanisms employed by Newton Protocol in the DeFi space.
Competition from other wallet providers and DeFi protocols could challenge Newton Labs' adoption and market penetration efforts.

The upcoming transition of wallet customers to Payward on August 1, 2026, will be a key milestone to monitor.
Future developments in Newton Protocol's adoption and partnerships, particularly with compliance-focused solutions, will signal the success of Magic Labs' pivot to Newton Labs.

§ 07

What did Magic Labs sell to Payward?

Magic Labs sold its wallet business to Payward, the parent company of Kraken.

Why is Magic Labs rebranding as Newton Labs?

Magic Labs is rebranding as Newton Labs to focus on the Newton Protocol, emphasizing compliance and security in DeFi applications.

When will the wallet business transition to Payward?

The wallet business will transition to Payward on August 1, 2026.

Who is involved in the acquisition of Magic Labs' wallet business?

Key players include Magic Labs, Payward (Kraken's parent company), and co-founder Sean Li.