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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

Crypto Public Companies Snapshot

Crypto Public Companies Snapshot

Elliot Chun
May 18, 2024
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Memecoins are here to stay and that is a good thing, as long as everyone knows what a Memecoin is – a crypto asset that is not backed by any asset and has no business model. 

 

But that does not mean Memecoins have no value. 

 

I joined our industry in early 2018, during the height of the “ICO Boom & Bust” and experienced the earliest phases of what has been termed “$#!+coins”. These are tokens that have no reasonable answers to the rationale questions of “what does the token do”, “what benefit does a holder of the token get” and “what is the token’s business model”. Projects that launched a token that did not have viable answers to these questions flooded the crypto market and is the reason why “cryptocurrencies” remains a tainted word. Because 99% of cryptocurrencies were $#!+coins by design and had zero value besides hype.

 

The “Attention Economy” exists. This references anything that humans invest seconds of their day doing. If time is our most valuable asset (and it is), theoretically, we all assign real value to things that we spend time on. Human society invests meaningful amounts of time on social media, but there is little ability to assign value to that time spent. If one were to sit in any Web2 (Social Media) executive meeting in the late 90s, the key topic to address was “how do we monetize our website?”. With the limited technology options available at that time (online credit card payments were just emerging), the answer became online advertising. In 2024, social media’s primary monetization method remains advertising.

 

Surely this method of monetization is the worst business model for the users – who deliver the actual value to the website – and an ideal model for the operators. Operators figured out how to incentivize users to provide all of their data for free in exchange for no monetary value and only for attention value. The model should be that users receive monetary value for the amount of engagement they bring to the website and the operators take a cut of that value. 

 

Enter Memestocks. During the height of the pandemic, a new and crude way to directly monetize attention through the stock market emerged. GameStop (GME) and AMC (AMC) immediately became social media sensations because they were early examples of users being able to generate monetary value by attracting attention. Traditional and purist investors (if they even exist still) cried foul and that Memestocks were fraudulent and ruining the fundamentals of the stock market.  

 

This week both GME and AMC stocks went on a frenzy because of a single tweet of an image of a person leaning forward in their chair from one of the Founders of the Memestock movement. But this happened when TradFi markets opened on Monday at 9:30am EST. Minutes after this tweet on Sunday evening, previously existing $GME and $AMC tokens minted on Solana traded up from $2M to $160M and $100K to $35M by Tuesday. 

 

Enter Memecoins – the next evolution of monetizing the Attention Economy. To be clear, these tokens are not backed by any asset and do not have a business model. But that does not mean they do not have value. Dogecoin ($22B), Shiba Inu ($14B), Pepe ($4B), and dogwifhat ($2.5B) are proving that Memecoins have an emerging place in free markets. These are early experiments that are showing a future where we are able to directly assign value to creators of things that attract attention.

 

I have never been a supporter of $#!+coins and, in 2024, believe the majority of them will do significantly more harm than any benefit they provide to our industry, but to date, there have been over 8 million coins that have been minted (created). If we are clear with our terminology and understand that the vast majority of coins are not backed by an asset and do not have a business model, then maybe Memecoins do have a permanent role to play and maybe that role is assigning value to the Attention economy. The question is “who’s paying attention”?

 

—

 

Running a 24/7/365 operation is difficult. Many might say near impossible, certainly by early 2000 standards. But in the worlds of content streaming and crypto, 99%+ uptime is the standard that customers expect and that companies must deliver. This week, Coinbase experienced a system wide outage for ~3 hours that caused some headlines and initial concerns, which is warranted given our industry’s history with hacking and bad acting. Expectedly, Coinbase handled the process with real-time transparency and communication that assuaged concerned market participants. This is important to note as we compare how TradFi exchanges currently operate 97,500 minutes/year (6.5 hrs/day * 5 days * 50 weeks) versus Crypto Exchanges operating 524,160 minutes/year. This makes 180 minutes of downtime seem much less meaningful. Crypto Exchanges are setting a new standard for providing institutional access to trading asset classes literally all the time. Will TradFi exchanges ever operate to this standard?

 

Coinshares announced their most successful quarter ever.

 

Architect Partners will be speaking at Digital Asset Week SF May 21-22 and will be at Consensus in Austin May 27 – Jun 1. Please reach out if you’d like to connect at either event.