Kraken Parent Company Buys Magic Labs Wallet Business

Kraken parent company Payward just completed a deal to acquire the embedded wallet business from Magic Labs. This move allows Kraken to gain control over technology that helps developers integrate crypto wallets directly into their own applications. For Kraken, this is a clear play to make using digital assets simpler for the average user.

Following the sale, Magic Labs is changing its name to Newton Labs. The team plans to shift its focus entirely toward onchain finance infrastructure. By offloading the wallet side of the house, they can dedicate their resources to building out new financial tools for the blockchain sector.

This acquisition shows that major exchanges are looking for ways to capture users outside of their own trading apps. By providing the plumbing for other companies to offer wallets, Kraken is betting that the future of crypto involves products that handle the technical side of transactions in the background.