Payward, the parent company of Kraken, has agreed to acquire the wallet-as-a-service business of Magic Labs and fold its non-custodial wallet technology into its business-to-business platform. Magic Labs said the infrastructure has been used to create more than 60 million non-custodial wallets for over 200,000 developers. Financial terms of the deal were not disclosed.
Payward, the parent company of crypto exchange Kraken, has agreed to acquire the wallet-as-a-service business of Magic Labs, expanding its enterprise infrastructure offering as demand for onchain financial services continues to grow.
The exchange operator said Monday the acquisition will let it integrate Magic Labs' non-custodial wallet technology into Payward Services, its business-to-business platform for crypto trading, custody, tokenized assets and fiat on- and off-ramps. Financial terms of the deal were not disclosed.
Embedded wallets allow businesses to offer self-custodied wallets directly within their applications instead of relying on third-party wallet providers. That gives business clients a broader suite of blockchain infrastructure through a single integration, potentially reducing the number of infrastructure providers businesses need to integrate with.
Magic Labs said its infrastructure has been used to create more than 60 million non-custodial wallets for over 200,000 developers. The same infrastructure has facilitated more than $10 billion in stablecoin transactions, the company said.
Both companies expect the transaction to close in the coming weeks, subject to customary closing conditions. Following the sale, Magic Labs said it will focus on Newton, a platform that helps users and applications securely authorize and verify onchain transactions without relying on centralized intermediaries.
Source: Cointelegraph
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