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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

OUR TEAM

Our partners roll up their sleeves and lead the day-to-day work.

 

Architect provides premium value M&A advisory and strategic financing for innovative entrepreneurs, investors, public company senior executives, and boards of directors. Our globally-experienced team is led by seasoned bankers who have honed their skills over decades at major firms and technology boutiques. We don’t have a B team–the partners you see are the people that do the work.

Eric F. Risley

Founder & Managing Partner

Eric F. Risley

Founder & Managing Partner

Eric Risley has guided senior executives and corporate boards through private and public financings, M&A and strategic transactions for over twenty-five years.

 

Eric founded and is Managing Partner at Architect Partners LLC, a digital asset and mergers & acquisition advisory firm focused on entrepreneurs and emerging growth companies and emerging technology sectors.

 

Previously, Eric led Global Software Corporate and Investment Banking for Banc of America Securities, building the practice into the technology group’s largest revenue-generating business while advising some of the firms’ largest clients including CA, BEA Systems, Symantec, Microsoft, Oracle and Veritas among others. Prior to BofA Securities, Eric co-founded the Silicon Valley technology investment banking practice for Oppenheimer & Co., Inc. (subsequently CIBC World Markets) where he eventually led both the Internet and Software Investment Banking business units. Eric was also Head of Investment Banking at Rutberg & Company, the well regarded wireless research and investment banking boutique.

 

Eric’s brings clients executive and Board-level relationships built over two decades at hundreds of venture and growth investors as well as important acquirers across the technology, Internet, mobile digital media and newly emerging blockchain sectors.

 

Selected client mandates include financing advisory assignments for Crypto | DLT-based clients: Securitize acquisition of Velocity Capital Markets and Open Finance Network and LO3 Energy financings. Recently completed M&A advisory mandates include the divestiture of FICO’s Cyber Risk Score business to Institutional Shareholder Services, the sale of Velocity Capital Markets to Securitize, the sale of Mavencare to Bayada, the sale of HireAHelper to Porch, the sale of Zetta to Marlin Equity portfolio company Arcserve, the sale of ThinkSmart Technologies to Cisco, the sale of SkyFire Labs to Opera Software, the sale of Avaak to Netgear, the sale of Qualcomm-backed Gimbal to The Mobile Majority, the purchase of Best Buy subsidiary mindSHIFT by RICOH, the sale of ENCAP Security to AllClearID, the sale of ZLEMMA to Hired and the sale of Mobidia to App Annie.

Steve Payne

Co-Founder & Partner

Steve Payne

Co-Founder & Partner

Steve Payne co-founded Architect Partners with Eric Risley who he’s known for twenty years. He is a Silicon Valley veteran with decades of experience connecting innovative startups with large global tech players for venture capital investments, strategic partnerships, and acquisitions.

 

Steve was once a senior operating executive, a venture investor, and has long been a dealmaker in Silicon Valley. Recently, he was Managing Partner of the Ignite Group, a trans-Pacific venture capital partnership with funds in Silicon Valley and Tokyo. Before that, he headed New Products at Sega and was EVP of Product Development and Marketing at SegaSoft.

 

Two bubbles ago, Steve left management consulting to head product marketing for a Kleiner Perkins and Sequoia Capital startup.

 

What ties his background together is a strong understanding of technology and a senior strategic perspective. He can connect young, fast-growing companies with world-class partners for business development, investment, or M&A.

 

Along the way, he’s built a broad network of relationships in the US venture ecosystem as well as in Asia and Europe and has completed more than a hundred venture financings and acquisitions.

 

In his spare time, Steve mentors startup CEOs and works with several accelerators to try to give back to tech and social entrepreneurs. He’s been a CEO mentor and/or business plan judge for the Cleantech Open, Draper University, K Global, One Harvard New Venture Competition, Global Social Ventures Competition, Oberlin LaunchU, along with others. Steve holds an engineering degree from Washington University in St. Louis and an MBA from Harvard. He has been a Director of two dozen private and non-profit boards.

Todd White

Partner

Todd White

Partner

Todd White was involved in more than $1.8 billion in capital transactions for various re/insurance ventures. Before Architect, he served as an SVP, did Corporate Strategy for Montpelier Reinsurance Group, was the Founding Director for Blue Capital Management, and served as the Founding General Counsel for Flagstone Reinsurance. He brings more than twenty years of experience in re/insurance, asset management, and capital markets to the team.

Peter Golder

Partner

Peter Golder

Partner

 

Peter Golder has advised senior executives and corporate boards on strategy, growth, risk management, corporate finance, M&A and strategic transactions for over 25 years.

 

Peter is a Partner with Architect Partners, a digital asset and M&A advisory firm that operates at the nexus of global capital markets, technology, and corporate finance.

 

Peter is an experienced capital markets CXO and board member.  Most recently Peter served as Managing Director and Head of Group Digital Assets at LSEG [London Stock Exchange Group].  Peter was also the Chief Commercial Officer at Six Digital Exchange [SIX/SDX] and a Board member of the Global Blockchain Business Council [GBBC] and the Ethereum Enterprise Alliance [EEA].  Prior to SIX/SDX, Peter was the founder and CEO of Euroclear Information Systems [a Euroclear Group company].

 

Previously, Peter was the co—founder and CEO of 776 Capital, a systematic quantitative investment manager and a Managing Director of Prosdocimi, a corporate finance and merchant banking boutique.  Peter was also the CEO of Dar Al Istithmar, Deutsche Bank’s award—winning Islamic structuring boutique and the Global Head of Strategy for Deutsche Bank’s Global Markets Equities division.  Earlier in his career, Peter was a Principal at Booz & Co where he advised global financial institutions on strategy and growth, M&A, technology and risk.

 

Peter is the author of recode, which examines the interplay between TradFi, DeFi and crypto in the context of innovation and transformation; and Goldchain, which explores the state of blockchain across global capital markets and identifies 7 areas for improvement to accelerate institutional adoption.  He is also a frequent speaker at Digital Assets, DLT and Crypto industry events and the founder of Akrong and 10V — a think tank and a media boutique.

 

Peter holds a PhD in Strategy from Bayes Business School, London, a MSC [Insigni Cum Laude] in European Law and Politics plus a MA and BA in Economics and Finance from the University of Basel.  In addition, Peter complemented his career with executive education from Harvard Business School, Chicago Booth School of Business and the Said Business School, University of Oxford.

Glenn Gottlieb

Managing Director

Glenn Gottlieb

Managing Director

Glenn Gottlieb brings a strong operational and transactional background to the team. Glenn handled product line growth at a global level for multiple high-tech companies, has held senior business and corporate development roles, has been with high profile startups as well as management consulting before entering investment banking. Along the way, Glenn co-founded two companies; one of which is owned by Yahoo.

 

Glenn has been involved with strategically evaluating technologies, business models and markets as an investor, acquirer, and as an investment banker for over 25 years.

 

Prior to Architect Partners, Glenn served as a director with Dresner Partners where he advised technology companies with equity raises and M&A.

Ryan McCulloch

Vice President

Ryan McCulloch

Vice President

Ryan McCulloch, now a Vice President at Architect Partners, started at the firm as an intern. He’s been on the team for six years.

 

Ryan graduated from San Diego State University, where he majored in Finance. He is passionate about investment banking and is especially interested in emerging technology M&A.

 

Throughout his life, Ryan has played hockey and still finds time for a pickup game every once in a while. Ryan also enjoys golfing, staying active, and going to the gym.

Elliot Chun

Senior Advisor

Elliot Chun

Senior Advisor

Elliot Chun has spent more than twenty years in capital markets across asset classes—digital asset markets, equities, FX, real estate— and across functions—investment banking, buy-side, consulting, and sell-side. For more than four years he has focused on crypto full-time, helping traditional companies to transition into the industry and bringing crypto companies access to capital markets.  ​​

 

He’s familiar with every size company having spent time at start-ups, Bank of America, and Perella Weinberg Partners.

 

Prior to Architect, Elliot founded and collaborated on ventures in blockchain and other emerging technologies, built an alternative asset management platform for a leading boutique investment bank, consulted on various initiatives for major investment banks, and started in cash equity sales and trading.

Michael Klena

Senior Advisor

Michael Klena

Senior Advisor

Michael Klena helps firms to raise capital and execute M&A. He has spent more than thirty years in financial services as a senior executive at leading firms like E*TRADE and TD Bank, working across the US and in London for several years. Over his career, Michael has been involved in numerous M&A deals, including Google’s IPO. Michael also led a Swiss digital asset exchange and an FX trading firm.

 

Along with his experience as a financial services senior executive, he possesses deep expertise in sales, service, trading, operations, and M&A within blockchain-based brokers and dealers, bricks-and-mortar, and online. Michael has built new divisions, overhauled struggling divisions, and developed management globally.

Howard Lee

Senior Advisor

Howard Lee

Senior Advisor

Howard Lee, a Senior Advisor at Architect Partners, has more than twenty-one years of experience in venture capital and private equity investing in Silicon Valley, and more than a decade of experience in research, development, and marketing in emerging and established technology companies and research institutions. His investments have spanned venture capital and private equity funds, and venture secondary. Howard brings extensive primary and direct secondary venture investment experience and networks in cybersecurity and IT infrastructure that provide trusted value to entrepreneurs and founders as they manage and build their companies.

 

Most recently, Howard was the Co-Founder and Managing Director of Founders Equity Partners (FEP), a $94 million venture secondary fund focused on the cybersecurity sector. Prior to FEP, he was Co-Head for US Private Equity at CDIB Capital, the private equity arm of CDIB, the largest industrial bank in Taiwan.

 

Prior to CDIB Capital, Howard was a General Partner at Crystal Ventures, a venture capital firm that focused on early-stage infrastructure and enabling technology companies in both the US and Asia. Howard was also a Vice President of the global venture capital firm Crimson Ventures. Before Crimson, he was Vice President and Co-Founder of Volendam Capital Advisors, a venture fund that invests in emerging growth high technology companies in the US and Europe. Howard has held management positions in product management and marketing at Applied Materials and has worked as a research investigator in optoelectronics and semiconductor materials at the US Army Research Labs. He has also held engineering positions at IBM and Unisys.

 

He currently serves on the Board of Trustees for the San Jose Police and Fire Retirement Plan and as an advisor and mentor to several Silicon Valley organizations including the Entrepreneurship course at the University of California at Berkeley.

 

Howard holds a BS (Highest Honors) in Electrical Engineering, a PhD in Electrical Engineering and Electro-Optics from Cornell University, and an MBA from INSEAD in Fontainebleau, France.

Adlee Heshmat

Senior Financial Analyst

Adlee Heshmat

Senior Financial Analyst

Adlee is a Senior Financial Analyst at Architect Partners and an experienced practitioner in crypto M&A. He was previously an investment banking analyst at Areta and Lincoln International.