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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

S&P Global to Acquire OpenZeppelin

Adlee Heshmat
September 17th, 2026
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Transaction Overview

On September 17, 2026, S&P Global (NYSE: SPGI), a provider of ratings, benchmarks, and market data, announced an agreement to acquire OpenZeppelin, a smart contract security firm and developer of widely used open-source software libraries and tools. Financial terms were not disclosed. The announcement comes three days after S&P led a strategic investment in digital asset data provider Kaiko, extending that company’s Series B to $110 million.

 

Target: OpenZeppelin

Founded in 2015 by Demian Brener and Manuel Araoz, OpenZeppelin provides security audits, engineering services, and developer tools for blockchain applications. The company operates remotely, reports a global team of more than 140 people, and has its registered office in London.

 

Its core product is OpenZeppelin Contracts, an MIT-licensed library first released in 2016. It provides reusable smart contract components for token issuance, access control, governance, and upgrades. According to the company, the library has supported more than $37 trillion in value transferred and is used by nine of the ten largest stablecoins and all ten of the largest tokenized money market funds by market capitalization. Developers can use the library free of charge, alongside tools including Contracts Wizard, Upgrades Plugins, Relayer, and Monitor.

 

OpenZeppelin’s paid offerings include smart contract, blockchain infrastructure, and zero-knowledge proof audits, engineering services, and ongoing security support. Its Continuous Security Program, introduced in May 2026, reviews code as it is developed and updated. The company has completed more than 900 security engagements and identified over 10,000 vulnerabilities before production.

 

Clients and partners include Aave, Uniswap, Fidelity Digital Assets, WisdomTree, DTCC, Coinbase, Fireblocks, and the Ethereum Foundation. OpenZeppelin’s work spans both crypto protocols and institutions developing tokenized financial products. Northzone invested in OpenZeppelin in 2018.

 

Competitors include Trail of Bits, Halborn, CertiK, Quantstamp, Spearbit (Cantina), Zellic, Sherlock, and Cyfrin.

 

Buyer: Circle

Headquartered in New York, S&P Global is led by CEO Martina Cheung and traces its roots to 1860. Following the July 1, 2026, spin-off of its Mobility division, the group operates four divisions: 1) Ratings; 2) Market Intelligence, including Capital IQ; 3) S&P Dow Jones Indices; and 4) Energy, including Platts. For the second quarter of 2026, excluding Mobility on a pro forma basis, S&P reported revenue of $3.68 billion (+11% YoY) and net income of $1.21 billion (+22% YoY).

 

S&P has expanded its digital asset business through ratings, benchmarks, and partnerships. Ratings launched Stablecoin Stability Assessments in December 2023 and now covers 11 stablecoins; these assessments evaluate peg stability and are distinct from credit ratings. In August 2025, it assigned Sky Protocol a B- credit rating, its first for a DeFi protocol. An October 2025 collaboration with Chainlink made S&P’s stablecoin assessments available onchain. S&P Dow Jones Indices and Kaiko tokenized the iBoxx U.S. Treasuries Index in March 2026 and launched the co-branded S&P Kaiko Digital Asset Indices in September.

 

Other investors in the Kaiko round included BNP Paribas, Nasdaq Ventures, Coinbase Ventures, and DRW Venture Capital. S&P’s individual investment amount was not disclosed. The investment extends an existing data and index partnership; OpenZeppelin would add a separate capability in technical security assessment.

 

Transaction Parameters

Financial terms were not disclosed. S&P said the acquisition is not expected to have a material impact on its financial results. The transaction remains subject to closing conditions.

OpenZeppelin will operate as its own business unit under its current name, with Brener continuing to lead the business and reporting to Yann Le Pallec, President of S&P Global Ratings. OpenZeppelin said its Contracts library and other open-source tools will remain free and publicly maintained, and that audits, engineering work, and ecosystem programs will continue with the same team. Jefferies and Clifford Chance are advising S&P Global; FT Partners and Cooley are advising OpenZeppelin.

 

Related acquisitions across digital asset security, data, and infrastructure include: Chainalysis | Hexagate (estimated $60M, M&A Alert), Chainalysis | Alterya (estimated $150M, M&A Alert), Talos | Coin Metrics (reported $100M+, M&A Alert), and DTCC | Securrency (reported $50M, M&A Alert).

 

Strategic Rationale

S&P sells risk assessments. For assets issued and managed onchain, that requires understanding the underlying technology alongside the issuer and backing assets. A tokenized fund can hold high-quality assets and still expose investors to weaknesses in its smart contracts or access controls. OpenZeppelin adds engineers who can examine those systems, supported by a long record of audits and direct experience developing the software used across the market.

 

The immediate commercial opportunity is to sell OpenZeppelin’s security services through S&P’s institutional relationships. OpenZeppelin already works with traditional financial institutions, but S&P offers access to a much larger customer base. For a bank or asset manager launching a tokenized product, technical security review sits alongside familiar questions about the issuer and underlying assets.

 

The Continuous Security Program also creates an opportunity for ongoing client work as applications change. Over time, those reviews could complement S&P’s monitoring of onchain financial products. That would turn a one-off audit into an ongoing client relationship and more recurring revenue.

 

Architect Partners’ Observations

S&P’s agreement to acquire OpenZeppelin broadens the potential buyer universe for crypto security businesses. Chainalysis’s purchases of Hexagate and Alterya added security and fraud prevention capabilities to a crypto analytics platform. S&P brings a different customer base and a business built around assessing financial risk.

 

For OpenZeppelin, widespread adoption of free software and growth in paid services are different measures of success. The Contracts library’s reach establishes its importance to the market, but library users do not automatically become customers. S&P’s distribution could help convert that technical reputation into more institutional engagements.

 

We expect other ratings, financial data, risk and professional services firms to look more closely at independent crypto security providers. The strongest acquisition candidates will combine technical credibility with established institutional clients and ongoing security work. Buyers would gain expertise they can bring to their existing customer relationships, while security firms would gain access to a larger institutional market.

 

Sources 

Press Release, OpenZeppelin, S&P Global Financial Results, Kaiko, Northzone