Magic Labs’ noncustodial wallet infrastructure has powered more than 60 million wallets and over $10 billion in stablecoin volume for 200,000 developers, Payward said in a Monday (July 27) press release.
Payward Services offers partners a single integration point for the infrastructure they need to build always-on financial products, such as cryptocurrency trading, custody, tokenized assets, on- and off-ramps, and derivatives, according to the release.
The addition of Magic Labs’ technology will extend the Payward Services platform into embedded wallets so that partners can offer self-custody and on-chain product experiences without turning to multiple vendors, the release said.
The transaction is expected to close within weeks, subject to customary closing conditions. Upon closing, Magic Labs’ wallet technology will be built into Payward Services’ product suite, per the release.
“Embedded wallets are becoming foundational infrastructure for every on-chain product,” Payward Chief Commercial Officer Mark Greenberg said in the release. “Magic Labs’ technology lets us bring that layer in-house and offer partners a complete, integrated stack—exchange, custody and now wallet —without stitching together multiple providers.”
Sean Li, CEO of Newton Labs, formerly Magic Labs, said in the release: “This transition allows us to put our full energy behind Newton, the authorization layer for on-chain finance, while the wallet business moves to a team committed to serving our customers.”
In an article posted on LinkedIn, Li said Magic Labs wallet customers will be serviced by Payward, beginning Saturday (Aug. 1), and that their services and integrations will continue without interruption.
The Newton Protocol development, VaultKit and “everything Newton” will continue under Newton Labs, Li said in the article.
“We are doubling down on Newton,” Li said. “One company, one focus: the authorization layer for on-chain finance.”
In another move, Payward announced July 1 that it completed its acquisition of payments infrastructure firm Reap. That deal, which was announced in May, is designed to expand Payward Services and open a path to “globally regulated infrastructure” for stablecoin payments and card issuance.
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