Kraken's parent company Payward acquires Magic Labs' wallet business
Strategic acquisition simplifies crypto infrastructure integration for enterprises.
1Strategic Acquisition
Payward, Kraken's parent company, strengthens its enterprise infrastructure by acquiring Magic Labs' wallet service business. This move will enable businesses to offer crypto wallet services through a single integration. Magic Labs' technology has already created over 60 million self-custody wallets.
2Integrated Solution Advantage
Post-acquisition, Payward will integrate Magic Labs' self-custody wallet technology into its B2B platform. Companies can now offer wallet services directly within their applications without relying on third-party providers, streamlining their crypto operations.
3Market Growth
As demand for blockchain-based financial services grows, Payward's move reflects industry consolidation trends. Magic Labs' infrastructure is used by over 200,000 developers and has facilitated more than $10 billion in transactions, demonstrating significant market traction.
4Deal Details
Financial terms of the acquisition were not disclosed. The transaction is expected to close in coming weeks, subject to customary conditions. Following the sale, Magic Labs will focus on its Newton platform for decentralized transaction authorization.
5Magic Labs' New Direction
Post-acquisition, Magic Labs will concentrate on Newton, its platform for secure blockchain transaction authorization without centralized intermediaries. This shift represents a strategic refinement of the company's product portfolio.
6Industry Impact
This acquisition highlights the consolidation trend among crypto infrastructure providers. By incorporating Magic Labs' technology, Payward gains competitive advantage in offering comprehensive blockchain solutions to institutional clients.