Kraken's parent company, Payward, has acquired Magic Labs' wallet-as-a-service business. The deal aims to integrate non-custodial wallet technology into Payward's enterprise platform, offering businesses a more streamlined approach to on-chain financial services.
The acquisition streamlines access to blockchain infrastructure for businesses, potentially accelerating the adoption of on-chain financial services by making it easier to integrate self-custodied wallets and other services through a single provider.
Payward, the parent company of cryptocurrency exchange Kraken, has announced its agreement to acquire the wallet-as-a-service business of Magic Labs. This strategic move is designed to enhance Payward's enterprise infrastructure offerings as the demand for on-chain financial services continues to rise.
The integration of Magic Labs' non-custodial wallet technology into Payward Services, Payward's business-to-business platform, will enable businesses to embed self-custodied wallets directly into their applications. This is expected to reduce the need for multiple third-party wallet providers, offering clients a more comprehensive suite of blockchain infrastructure through a single point of integration.
Magic Labs reported that its infrastructure has been instrumental in creating over 60 million non-custodial wallets for more than 200,000 developers and has processed over $10 billion in stablecoin transactions. Following the completion of the transaction, which is subject to customary closing conditions and expected in the coming weeks, Magic Labs will shift its focus to developing Newton, a platform designed for secure on-chain transaction authorization and verification without central intermediaries.