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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

Mastercard Acquires BVNK for up to $1.8B

Dong Yang
March 18th, 2026
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Transaction Overview

On March 17th, Mastercard (NYSE: MA), one of the world’s largest payment networks, announced a definitive agreement to acquire BVNK, a London-based stablecoin payments infrastructure company, for up to $1.8 billion, including $1.5 billion in fixed payments and up to $300 million in contingent payments tied to performance milestones.

 

Target: BVNK

BVNK is a stablecoin payments infrastructure company that enables businesses to send, receive, convert, and store stablecoins and fiat currencies across a variety of domestic and international payment rails and blockchains.

 

BVNK’s core offering is its managed payments platform, which lets clients accept stablecoin payments and settle in fiat, send cross-border payouts in stablecoins or local currency, and hold wallets spanning both fiat and stablecoin balances. The platform is designed so clients can use BVNK’s licensing, compliance, and payments infrastructure rather than building and operating the full stack themselves.

 

For larger enterprises that prefer to operate their own stablecoin infrastructure, BVNK offers Layer1, a self-hosted stablecoin infrastructure product launched in June 2024. Layer1 provides custody, payments, and liquidity tooling for companies that want to manage stablecoin payment operations more directly within their own environment.

 

As of December 2025, BVNK said it was processing $30 billion in annualized stablecoin payment volume. Around the time of its December 2024 Series B, BVNK was reported to be generating approximately $40 million of annualized revenue. BVNK has publicly highlighted relationships with customers and partners including Worldpay, Deel, Flywire, dLocal, and Rapyd.

 

Key competitors and adjacent providers include Bridge, now part of Stripe, Zero Hash, and Triple-A, along with other stablecoin and crypto payments infrastructure vendors.

 

Prior to Mastercard’s announced acquisition of BVNK in March 2026, BVNK had publicly disclosed at least $90 million of venture funding, including a $40 million Series A in 2022 and a $50 million Series B led by Haun Ventures in December 2024. Public reporting at the time of the Series B valued BVNK at around $750 million.

 

Buyer: Mastercard

Headquartered in Purchase, New York, Mastercard (NYSE: MA) is one of the world’s largest global payment networks. The company provides payment network services and related products across more than 200 countries and territories, serving financial institutions, merchants, governments, and consumers.

 

Mastercard’s business primarily consists of two revenue categories: Payment Network (cards and Mastercard Move global money transfer services) and Value-Added Services and Solutions. Its value-added offerings include areas such as cybersecurity, business and market insights, consumer engagement, and related consulting and analytics services.

 

Mastercard has been actively expanding into digital assets through a series of initiatives. The company built the Multi-Token Network (MTN) to help connect traditional money with digital assets and to support interoperability across fiat currencies, stablecoins, and tokenized deposits. It has also enabled stablecoin and crypto payments through integrations with MetaMask, Crypto.com, OKX, and Kraken. Mastercard says that more than 3.5 billion Mastercard and Maestro cards in circulation can engage with crypto, and that it supports a growing portfolio of regulated stablecoins, including USDC, USDG, FIUSD, and PYUSD.

 

On the partnership front, Mastercard launched its Crypto Partner Program on March 11, 2026, bringing together more than 100 crypto-native companies, payments providers, and financial institutions, including Binance, Ripple, Circle, and PayPal, to collaborate on real-world payment use cases. The acquisition of BVNK, announced six days later on March 17, 2026, moves beyond partnership alone and adds in-house stablecoin infrastructure capabilities.

 

For full year 2025, Mastercard reported net revenue of $32.791 billion, up 16% year over year, and net income of $14.968 billion, implying a net profit margin of approximately 45.6%. As of March 16, 2026, Mastercard’s market capitalization was approximately $453.5 billion and its enterprise value was approximately $461.6 billion. Based on LTM revenue of $32.791 billion, Mastercard was trading at an LTM EV / Revenue multiple of approximately 14.1x.

 

Transaction Parameters

Mastercard has agreed to acquire BVNK for up to $1.8 billion, including $300 million in contingent payments tied to performance milestones. Based on public reporting that BVNK’s December 2024 Series B valued the company at around $750 million, the implied transaction value represents 2.0x that valuation based on the inferred $1.5 billion non-contingent consideration, and 2.4x at the full $1.8 billion value. 

 

At BVNK’s December 2024 Series B, it disclosed approximately $40 million in annualized revenue on $10 billion of processing volume. With the current processing volume at approximately $30 billion from the acquisition announcement, assuming proportional revenue growth, the implied current annualized revenue is approximately $120 million, yielding an adjusted EV / Revenue of 12.5x to 15x.

 

Previous comparable transactions include: Stripe | Bridge ($1.1B, M&A Alert), Ripple | Rail ($200M, M&A Alert), OSL | Banxa ($62M, M&A Alert), Moonpay | Helio ($175M, M&A Alert), Nuvei | Simplex ($250M, M&A Alert), and Voyager Digital | Coinify ($85M, M&A Alert).

 

Strategic Rationale

Mastercard’s acquisition of BVNK builds on a years-long digital asset push that it had already stepped up with the March 2026 launch of its Crypto Partner Program.. This deal gives Mastercard more ability to connect stablecoin payments with traditional fiat payment rails across cross-border remittances, business payments, and payouts. BVNK also brings important regulatory and operating infrastructure, including 25+ licenses and regulatory approvals, along with technical capabilities that would have taken much longer for Mastercard to build on its own.  Mastercard acknowledged that, given BVNK’s head start, it made more sense to buy rather than build.

 

These capabilities fit naturally with Mastercard’s existing card and money movement businesses and add practical features such as 24/7 stablecoin settlement for processors and acquirers, stablecoin checkout in Mastercard’s gateway, and connections between stablecoin flows and Mastercard’s global fiat endpoints.

 

Architect Partners’ Observations
The implications of this transaction are crystal clear. The “threatened” camp, traditional financial services businesses, is now all in. This began in earnest with Stripe’s acquisition of Bridge and now Mastercard’s move. At the highest level, it is simple: traditional financial services businesses “own” the transaction flow and end-customer relationships. The question is how crypto | digital asset businesses insert themselves without being economically marginalized. This is the possibly existential question they all must answer.

 

Sources 

PitchBook, Press Release, Mastercard, BVNK, Mastercard Transaction Announcement Call