Kraken's Payward Buys Magic Labs' Embedded Wallet Unit
Magic Labs sells its wallet business to Payward and rebrands as Newton Labs for onchain finance
Kraken's parent company Payward has acquired the embedded wallet business from Magic Labs, while Magic Labs rebrands as Newton Labs to concentrate on onchain finance infrastructure, The Block reported as of July 2026.
Why It Matters
Embedded wallets are the invisible plumbing that lets users hold and move crypto inside apps without managing seed phrases — a capability increasingly critical to iGaming platforms integrating crypto payments. Payward folding this technology into the Kraken ecosystem signals that the exchange is pushing further into the infrastructure layer, not just the trading layer. For iGaming operators, a Kraken-backed embedded wallet solution could offer a more institutionally credible alternative to standalone wallet providers. That matters for compliance-sensitive markets where counterparty reputation influences licensing decisions. As always, crypto wallet integrations carry custodial and volatility risks operators and players must weigh carefully.
Context
Magic Labs built a widely used "magic link" authentication and embedded wallet stack that allowed web3 developers to onboard users with email logins rather than browser extensions. Payward, which operates the Kraken exchange and has expanded into crypto banking and custody, absorbs this capability as part of a broader push to own more of the user-experience stack. The remaining Newton Labs entity will redirect its focus toward onchain finance infrastructure, suggesting the wallet product was non-core to its new strategic direction.
What's Next
Watch for Payward to announce integration timelines that bring Magic Labs' wallet technology into Kraken's developer or B2B product suite. Newton Labs' pivot to onchain finance infrastructure will be the more consequential story for decentralised finance operators to track over the following quarters.
Gambling involves financial risk. Crypto assets are volatile and unregulated in many jurisdictions.
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