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Payward Acquires Magic Labs Embedded Wallet Business
Payward Acquires Magic Labs Embedded Wallet Business

Transaction Overview
On July 27, 2026, Payward, the B2B crypto infrastructure parent behind the crypto exchange Kraken, announced a definitive agreement to acquire wallet-as-a-service business Magic Labs. Financial terms of the transaction were not disclosed.

Target: Magic Labs (Wallet Infrastructure)
Founded in 2018 and headquartered in San Francisco, Magic Labs is a wallet-as-a-service infrastructure provider that enables businesses to create non-custodial embedded wallets for their end users. The company was co-founded by Sean Li, Arthur Jen, and Jaemin Jin.

Magic’s core offering is a developer-facing SDK and API that provides embedded wallets with passwordless authentication via email, social login, passkeys, or SSO. The product suite includes 1) API Wallets for server-side management with security and customizable key sharding, and 2) Embedded Wallets for client-side non-custodial key management. As of July 2026, the platform supports more than 30 blockchain networks and provides a white-label UI, fiat onramps, and transaction signing.

As of July 2026, Magic Labs had provisioned more than 60 million wallets and served more than 200,000 developers across more than 18,000 applications. Clients include Polymarket, Naver, Helium, Forbes, WalletConnect, Mattel, and Immutable. During the 2024 U.S. presidential election, Polymarket processed over $3 billion in prediction market transactions with zero downtime, powered by Magic’s embedded wallets. Magic said it had supported over $8.9 billion in cumulative transaction volume for Polymarket as of November 2025.

Magic Labs has raised a total of $83 million in disclosed venture funding across 4 rounds, with significant investors including PayPal Ventures, Northzone, Tiger Global, Digital Currency Group, CoinFund, and Placeholder VC.

In November 2024, Magic Labs announced Newton, a chain unification network built in collaboration with Polygon Labs, expanding beyond wallet infrastructure into cross-chain protocol development. In November 2025, Magic Labs integrated the Newton Protocol SDK across its developer network. The company described Newton Protocol as “the authorization layer for on-chain finance.” These moves preceded the company’s decision to divest its wallet business and refocus entirely on protocol development.

Buyer: Payward
Founded in 2011 and headquartered in San Francisco, Payward is a private B2B crypto infrastructure holding company. Payward operates Kraken, one of the longest-running cryptocurrency exchanges, alongside NinjaTrader, xStocks, Bitnomial, and CF Benchmarks. The company is led by co-CEOs Arjun Sethi and Dave Ripley.

Most relevant to this transaction, Payward operates Payward Services, a B2B infrastructure platform that provides institutions with access to Payward’s trading, custody, settlement, and payments infrastructure via API. The acquisition of Magic Labs adds embedded wallet infrastructure to their offering. In April 2026, Payward launched a white-label fiat-to-crypto onramp through a partnership with Onramper, making embedded wallet infrastructure a natural adjacent capability.

Payward has been expanding beyond its core exchange through acquisition. In 2025, the company acquired NinjaTrader for $1.5 billion (retail futures, M&A Alert) and agreed to acquire Backed Finance (tokenized equities, Press). In 2026, it acquired Magna (token lifecycle management, Press), completed the acquisition of Bitnomial for up to $550 million (regulated derivatives, M&A Alert), and agreed to acquire Reap for $600 million (card issuance and payments, M&A Alert). Including this transaction, Payward has announced or completed 8 acquisitions since early 2025, committing several billion dollars to platform expansion ahead of its planned public listing.

For the full year of 2025, Payward reported adjusted revenue of $2.2 billion, a 33% increase year over year from $1.5 billion in 2024. Trading-based revenue accounted for 47% of the total, with the remaining 53% from asset-based services, including payments, custody, yield, and financing.

In November 2025, Payward raised $800 million at a $20 billion post-money valuation in a round backed by Citadel Securities, Jane Street, and Apollo Global Management, and confidentially filed an S-1 with the SEC ahead of a planned IPO. In April 2026, Deutsche Börse Group made an additional $200 million strategic investment in the company.

Transaction Parameters
Payward has signed a definitive agreement to acquire the wallet-as-a-service business of Magic Labs for an undisclosed amount. The transaction includes Magic Labs’ embedded wallet business, including wallet clients and associated infrastructure.

The transaction is part of a broader corporate restructuring in which Magic Labs is rebranding as Newton Labs to focus on the Newton Protocol. The two companies will remain independent following the close.

Architect Partners served as the exclusive financial advisor to Magic Labs.

Strategic Rationale
Payward is acquiring Magic’s embedded wallet business to augment Payward Services’ B2B offering. Payward Services gives partners a single integration point for trading, custody, tokenized assets, on/off-ramps, and derivatives. The wallet, the account layer where end users actually hold assets and interact with onchain products, was a critical piece partners still had to source from a third party. Magic brings that layer in-house with proven infrastructure: a TEE-based signing solution, an embedded integration layer, and a developer SDK that together have provisioned more than 60 million wallets and supported over $10 billion in stablecoin volume for 200,000+ developers.

On Day 1, Payward can offer fintechs, enterprises, and financial institutions a complete embedded onchain offering under a single provider, spanning wallet provisioning, onboarding, funding, trading, custody, and settlement, without stitching together multiple vendors. Every embedded wallet also becomes a distribution point that routes transaction volume into the rest of Payward’s infrastructure, deepening the non-trading, less volatile revenue that already accounts for 53% of Payward’s total as it heads toward a public listing.

Architect Partners’ Observations
This transaction marks the near-completion of a consolidation wave in embedded wallet infrastructure. In roughly one year, Fireblocks acquired Dynamics ($90M), Consensys acquired Web3Auth ($50M), Stripe acquired Privvy, Ripple acquired Palisade, and Paxos acquired Fordefi. Now each group has its own independent wallet infrastructure provider, and Payward has acquired the category’s pioneer. The market has reached a clear verdict: embedded wallets are foundational infrastructure for every onchain product, and they are a layer of a full-stack platform rather than a standalone business.

The logic is simple: the wallet is becoming the account primitive of onchain finance. Whoever provisions the wallet sits at the front of the customer relationship and routes the volume that follows. For platforms whose trading revenue is inherently cyclical, owning the onboarding layer converts market position into durable, recurring B2B infrastructure revenue.

Sources
Press Release, Payward Services, PitchBook

Alerts

Circle Acquires Tazapay for $400M

Adlee Heshmat
September 9th, 2026
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Transaction Overview

On September 8, 2026, Circle Internet Group (NYSE: CRCL), the issuer of the USDC stablecoin, announced a definitive agreement to acquire Tazapay, a Singapore-headquartered B2B cross-border payments infrastructure company, for $400M payable entirely in Circle Class A common stock. The transaction is expected to close in 2027, subject to customary closing conditions and regulatory approvals, including from the Monetary Authority of Singapore (MAS). It is Circle’s largest acquisition since Poloniex in 2018 and its first of scale since its June 2025 IPO.

 

Target: Tazapay

Founded in 2020 and headquartered in Singapore, Tazapay is a B2B cross-border payments infrastructure provider serving payment providers, marketplaces, fintechs, and financial institutions. The company was co-founded by CEO Rahul Shinghal, a former Stripe and PayPal executive, with Saroj Mishra and Arul Kumaravel.

 

Tazapay’s platform comprises: 1) global collection accounts in 35+ currencies and a card and local payment method gateway for receiving payments from buyers in 170+ countries; 2) payouts to bank accounts and wallets over local rails covering 100+ markets; and 3) stablecoin settlement in USDC and USDT alongside fiat. Tazapay has been a Circle Payments Network (CPN) design partner since 2025 and live on the network since its May 2025 mainnet launch.

 

As of July 31, 2026, Tazapay processed more than $25B in annualized payment volume, up from roughly $10B in August 2025, with approximately 60% of that volume already settled in stablecoins. It serves 1,000+ customers in 30 countries through 60+ banking and fintech partners. Tazapay does not disclose financials; Tech in Asia and CB Insights report FY2025 revenue of approximately $12.4M, roughly double FY2024. The company says revenue has doubled in each of the last three years and that it had reached operational breakeven by August 2025.

 

Tazapay is licensed or registered in Singapore (MAS Major Payment Institution, 2023), Canada (FINTRAC), the U.S. (FinCEN and state money transmitter licenses), Australia (AUSTRAC), and Hong Kong (Money Service Operator, 2026).

 

According to PitchBook, Tazapay has raised approximately $60M. Its $16.9M Series A (February 2023) was led by Sequoia Capital Southeast Asia, now Peak XV Partners. Its $36M Series B was raised in two tranches, an August 2025 round led by Peak XV that brought in Ripple and Circle Ventures and a March 2026 extension led by Circle Ventures with Coinbase Ventures and CMT Digital (Press); PitchBook records the full $36M round, dated March 2026, at a $122M post-money valuation.

 

Competitors include BVNK (Mastercard), Bridge (Stripe), Rail (Ripple), Reap (Payward), Conduit, and Zero Hash in stablecoin settlement, and Nium, Airwallex, and Thunes in fiat cross-border payments.

 

Buyer: Circle

Founded in 2013 by Jeremy Allaire and Sean Neville and headquartered in New York, Circle Internet Group (NYSE: CRCL) issues USDC, the second-largest dollar stablecoin. Circle listed on the NYSE in June 2025 at $31 per share and, as of September 8, 2026, had a market capitalization of approximately $24.4B, roughly 7.8x EV / trailing revenue.

 

USDC in circulation stood at $73.3B as of June 30, 2026 (+19% YoY), approximately 27% of the stablecoin market by Circle’s measure, against roughly $185B for Tether’s USDT. Circle holds an OCC national trust bank charter and an MPI license from MAS.

 

Most relevant to this transaction, CPN, launched in May 2025, connects financial institutions for real-time cross-border settlement in USDC and EURC (Press). As of June 30, 2026, 175 financial institutions were enrolled (+29% QoQ) across 58+ countries, with annualized transaction volume of $14.7B (+76% QoQ), rising to $23B by July 31. Circle plans to begin monetizing CPN in the second half of 2026.

 

For fiscal year 2025, Circle reported total revenue and reserve income of $2.75B (+64% YoY), 96% of it reserve income, and adjusted EBITDA of $582M. In Q2 2026, revenue grew 7% YoY to $701M as reserve income growth slowed to 5% on lower interest rates while other revenue grew 41% to $34M.

 

Circle has been a steady acquirer, typically paying in stock, including Poloniex (reported $400M, 2018, later spun out), Coinbase’s stake in the Centre Consortium ($209.9M in stock, 2023), and Hashnote (approximately $100M per Circle’s S-1, 2025, M&A Alert).

 

Transaction Parameters

Circle will acquire all shares of Tazapay not already held by Circle for $400M, paid entirely in Circle Class A common stock. The share count will be set by Circle’s 20-day volume-weighted average price before closing; at the September 8 close of $96.18, the consideration equates to approximately 4.2M shares, or about 1.6% of shares outstanding. Eight percent of the shares will be held back for indemnification (5% released at 6, 12, and 18 months and 3% over 12 to 48 months), and Circle will grant $25M of RSUs to Tazapay employees. Closing is conditioned on regulatory approvals, including from MAS, and retention of at least 75% of identified employees. The agreement has a nine-month outside date, extendable to 15 months, and no termination fee. 

 

Against FY2025 revenue of approximately $12.4M (Tech in Asia and CB Insights, from Singapore filings; PitchBook carries $20.0M), the price implies roughly 20x to 32x revenue for a fiscal year that ended well before the current run-rate. On volume, the price equals approximately 1.6% of annualized payment volume, and it is roughly 3.3x the $122M post-money valuation PitchBook records for the $36M Series B, dated March 2026. Since the $400M excludes Circle Ventures’ stake, all three figures modestly understate whole-company value.

 

Previous comparable transactions include: Mastercard | BVNK (up to $1.8B, ~$30B annualized volume, M&A Alert), Stripe | Bridge ($1.1B, M&A Alert), Payward | Reap (up to $600M, M&A Alert), Ripple | Rail ($200M, M&A Alert), and MoonPay | Iron (reported $100M+, M&A Alert).

 

Strategic Rationale

Circle is buying the last mile. CPN moves USDC between institutions in seconds, but every cross-border payment still begins and ends in local currency, a step Circle has relied on licensed network participants to perform. Tazapay brings 60+ banking and fintech partners, local payout rails covering 100+ markets, and licenses in five jurisdictions, letting Circle “originate and terminate payments globally, near-instant and 24/7.” Tazapay’s $25B of annualized volume exceeds the $23B CPN had reached as of July 31, 2026; about 60% is already stablecoin-settled and the rest is a natural conversion pipeline for USDC.

 

The deal also addresses revenue concentration. Reserve income was 96% of Circle’s 2025 revenue and grew only 5% in Q2 2026 as rates declined. Tazapay adds a fee-generating business with 1,000+ customers in Asia-Pacific and emerging markets; Asia alone accounted for roughly 60% of real-world stablecoin payment volume in 2025, according to McKinsey and Artemis.

 

Architect Partners’ Observations

The stablecoin payments stack is being vertically integrated, and the issuer has now joined in. In under two years, Stripe bought Bridge, Ripple bought Rail, Mastercard bought BVNK, Payward bought Reap, and MoonPay bought Iron, each a distribution owner buying stablecoin orchestration. Circle is doing the reverse, moving into distribution and last-mile fiat. 

 

On price, Circle is paying about 1.6% of annualized volume, well below Mastercard’s roughly 6% for BVNK, Payward’s roughly 10% for Reap, and Stripe’s roughly 22% for Bridge. Part of that is mix: Tazapay’s volume is thin-margin B2B collections and payouts, and 20x to 32x FY2025 revenue is a full price for a company that only reached operational breakeven in 2025. And the $400M is a 3.3x step-up from the Series B valuation set six months ago in a round Circle Ventures co-led.

 

Sources 

PitchBook, Press Release, 8-K, S-1, Tazapay, Circle Q2 2026 Results, CoinDesk, Tech in Asia, CB Insights, McKinsey, StockAnalysis