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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

Sygnum Raises $40M

Michael S. Klena
January 30, 2024
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On January 25, 2024, Swiss-based global digital asset bank, Sygnum, raised $40 million in a strategic growth round, valuing the company at over $900 million post-money.

Transaction Overview

On January 25, 2024, Swiss-based global digital asset bank, Sygnum, raised $40 million in a strategic growth round, valuing the company at over $900 million post-money. The round is led by global asset manager, Azimut Holding, and is joined by other new and existing strategic and financial investors.

 

Company Description

Sygnum is a Switzerland and Singapore-focused digital asset bank serving high-net-worth individuals,  institutional investors, banks, corporates, and DLT foundations. Their service offering includes digital asset banking, asset tokenization, asset management, custody, staking, trading, and lending. By the end of 2023, Sygnum achieved an annualized revenue run rate of $100 million and reached positive cash flow in Q4 2023. The company disclosed $3.5 billion in AUM in the same year, an increase from $2 billion at the end of 2021. The client base also grew from 1,000 at the end of 2021 to 1,700 by the end of 2023.

 

The company has ~260 employees and operates in Singapore, Switzerland, UAE, and Luxembourg, with a client base from over 60 countries. Sygnum is licensed as a banking and securities dealer by Switzerland’s FINMA and holds a CMS license from the Monetary Authority of Singapore. In June 2023, it received in-principle approval for a Major Payments Institutional Licence from the Monetary Authority of Singapore. Sygnum expanded to Luxembourg in December 2022 and acquired Financial Services Permission from Abu Dhabi’s ADGM FSRA in March 2023. Some notable clients include large Swiss banks such as PostFinance, Zuger Kantonalbank, and Luzerner Kantonalbank.

 

Sygnum also has a venture capital arm with a $75M fund that has invested in nine early-stage crypto companies.

 

Funding

Sygnum has raised $40 million in its strategic growth round at a $900 million post-money valuation. The company now has several financial and strategic investors such as Azimut Holding, Sun Hung Kai & Co., Meta Investments, Animoca Brands, Wemade, SBI Holdings, SCB 10X, and others.

 

Funds from this financing round will increase Sygnum’s presence in new global markets and enable quicker regulated product development, like its B2B (bank-to-bank) platform. This platform is currently utilized by more than 15 banks and financial institutions worldwide for cryptocurrency services.

 

In January 2022, Sygnum raised $90 million in their Series B at a post-money valuation of $800 million led by Sun Hung Kai & Co. Previous funding details were not disclosed.

 

Competition

Sygnum competes with others in the digital assets banking space. Some competitors include SEBA Bank and Bitcoin Suisse.

 

Architect Partners’ Perspective

As we discussed in our 2023 year-end report, financings overall were muted in the past 12 months, and the malaise was more pronounced in mid-sized financings ($25-$75M) like Sygnum.  It is our understanding that Sygnum has been in the market for nearly a year and finally gained traction as the overall crypto trading volumes (and the attached revenues) rose from the trough in Q4.    

 

The Swiss regulator, FINMA, is under extreme pressure due to the Credit Suisse implosion, and we believe granting new crypto bank licenses is not a priority.  As one of only 2 licenses granted in Switzerland, the value of the license itself can be driving a slight uptick in valuation along with a general improving sentiment of the market.  We view the valuation at the top end of the range, but caveat that we do not have full information on their revenues. 

 

While it’s not a milestone in the capital raising environment, it is a nice marker that things may be opening up to average flows.

 

Sources 

PitchBook, Company Website, Press Release