Kraken parent Payward acquires Magic Labs' embedded wallet business. July 27, 2026 The Block general Positive Kraken's parent company Payward acquires the embedded wallet business of Magic Labs in a strategic move that strengthens Kraken's self-custody and Web3 onboarding infrastructure. Magic Labs, known for its developer-friendly wallet-as-a-service platform, is divesting its wallet division to Payward and rebranding as Newton Labs to pivot exclusively toward onchain finance infrastructure. This Kraken embedded wallet acquisition signals growing consolidation in the crypto wallet space as major exchanges race to own the full user journey - from account creation to self-custody. For Kraken, integrating Magic Labs' embedded wallet technology means the exchange can offer seamless, non-custodial wallet experiences directly within its ecosystem, a capability increasingly demanded by DeFi users and institutional onboarding flows. The deal arrives as crypto wallet infrastructure becomes a critical competitive differentiator, with rivals like Coinbase aggressively expanding their own wallet and Layer 2 products. Magic Labs had previously raised significant venture funding and served hundreds of Web3 developers, making its wallet technology a valuable addition to Payward's product suite. The rebrand to Newton Labs underscores a clear strategic separation - Magic Labs exits the consumer wallet market entirely to focus on deeper blockchain finance tooling. Investors and developers watching the crypto exchange consolidation trend and embedded Web3 wallet market should monitor how Payward integrates this technology into Kraken's broader product roadmap and whether Newton Labs' onchain finance infrastructure pivot attracts new enterprise partnerships in the months ahead. Magic Labs is selling its wallet business to Payward and rebranding as Newton Labs to focus on onchain finance infrastructure.

Newton Protocol, an authorisation layer for onchain finance, has launched its mainnet beta, with Magic Labs introducing the first VaultKit powered by Newton. The system enforces compliance, security, identity and risk policies before transactions settle, with all enforcement decisions recorded onchain. The VaultKit integrates policy tools from Chainalysis Hexagate, Vaults.fyi, RedStone, Credora and Webacy, allowing vault curators to enforce institutional-grade controls without building authorisation logic from scratch. The solution addresses the gap between growing curated DeFi vault TVL, which has increased over 350% in the past year, and risk management systems that remain offchain. Magic Labs, Newton's core developer, has previously onboarded 57 million wallets. The VaultKit is live on Base and Ethereum, with additional chain support planned.

Newton mainnet beta: the authorization layer for onchain finance is live. Following the Newton Foundation's mainnet beta announcement today, Magic Labs announces the launch of the first VaultKit powered by Newton. NEW YORK, NY, UNITED STATES, June 23, 2026 / EINPresswire.com / - Earlier today, the Newton Foundation announced the mainnet beta of Newton, the authorization layer for onchain finance. Magic Labs, the protocol's core developer, is building on that launch with the first VaultKit powered by Newton: a composable policy pack that lets institutional-grade vaults enforce compliance, security, identity, and risk logic inside every transaction, before it settles. Assembled with category leaders across each layer of vault risk, the SDK gives capital allocators and risk curators a shared, transparent standard for the controls they underwrite against, with every enforcement decision recorded onchain. Newton is the authorization layer that checks every transaction against a policy before settlement, querying any onchain or offchain data required, and returning a pass or fail. Signed and timestamped attestations are linked to the transaction and readable by allocators and regulators. Other onchain tools report what happened. Newton enforces what's allowed before it happens - verifiably, without revealing the underlying data. Institutional capital has moved onchain faster than the controls meant to govern it. Curated DeFi vault TVL has grown more than 350% in the past year, yet their risk limits and guardrails live in offchain processes rather than enforceable code. The VaultKit powered by Newton closes that gap. Built by Magic Labs, the VaultKit lets a curator make a vault's rules enforceable onchain without building authorization logic from scratch. Magic Labs has onboarded 57M+ wallets and 200K+ developers since inventing the embedded wallet category. "Magic made crypto simple to enter - onboarded 57 million wallets with a login that felt like any web2 app," said Sean Li, Co-founder of Magic Labs. "Our next mission is to make it safe to stay. In March, alerts fired across the industry while allocation bots kept feeding a collapsing market. The bots weren't broken; they did exactly what they were told. Newton enforces a vault's mandate onchain before each transaction settles, compliance, identity, security, and risk, whether the manager is a human, a bot, or an AI agent, and leaves a signed record the curator can hand to an allocator or a regulator. Every other product in this market tells you what happened. Newton lets you decide what happens, and what doesn't." Introducing VaultKit: Protection Powered by Newton The VaultKit launches alongside Newton's mainnet beta with policy integrations from: - Chainalysis Hexagate for smart contract risk monitoring, with policy guidelines for OFAC sanctions compliance - Vaults.fyi for live vault health and ratings - RedStone for price feeds and Credora for risk ratings and collateral intelligence - Webacy for wallet reputation and risk scoring Each is a component a vault curator can compose into policy. "A policy is only as strong as the data behind it," said Mike Massari, Head of Partnerships at RedStone. "Credora and RedStone bring price data, risk ratings, and collateral intelligence into Newton's policies, so curators can enforce risk with the same confidence they track market prices." The Newton protocol also leverages technology from Eigen Labs and Succinct's ZK technology to help secure the protocol, Rhinestone for secure smart account infrastructure, and Octane for continuous, AI-powered smart contract security. VaultKit is live today! Curators now have access to best-in-class compliance, security, and risk enforcement through the VaultKit, ready to use with Euler and live on Base and Ethereum, with more chain support coming soon. Integration with vaults is seamless via hook, gate, or a provided smart account, and reference implementations for additional popular vault platforms are forthcoming. Starting with vaults, scaling toward RWAs and AI agents Vaults are the starting point. The same authorization layer extends to RWAs, stablecoins, and agentic finance, anchored by an Internet of Policies marketplace. Getting started If you operate a vault, allocate to one, or own the controls around institutional capital onchain, request a demo to see Newton enforce policy on a live transaction. For more, visit newton.xyz, explore records on Newton Explorer, or build with the VaultKit in the developer docs. About Newton Protocol Newton is an authorization layer for onchain finance. Stewarded by the Newton Foundation, Newton's onchain policy engine verifiably enforces the rules that govern DeFi vaults, RWAs, stablecoins, and agentic finance, before each transaction settles. About Magic Labs Founded in 2018 and backed by lead investor PayPal Ventures, Magic Labs powers 57M+ wallets for mainstream consumer brands and major crypto protocols, including Polymarket. Main offerings include Vaults SDKs, embedded wallets, and password-less logins. Magic Labs is the core developer of Newton Protocol. Legal Disclaimer: EIN Presswire provides this news content "as is" without warranty of any kind. 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