Magic Labs Sells Wallet Business to Kraken Parent Payward

Magic Labs, known for its embedded wallet infrastructure used by apps like Polymarket and WalletConnect, has transferred its wallet business to Payward, the parent company of Kraken. Following this transaction, the company is rebranding itself as Newton Labs. CEO Sean Li announced these changes in a recent post, emphasizing a strategic shift towards developing an onchain authorization layer that verifies transactions against policies before they are settled.

The sale marks a significant move in the crypto infrastructure space, with Magic Labs shifting its focus from wallet services to onchain transaction vetting technology. This new direction aims to enhance security and compliance by vetting transactions prior to settlement, potentially improving trust and operational efficiency for blockchain applications.

The decision to sell the wallet business and rebrand reflects a broader industry trend towards specialized onchain security and policy enforcement tools. It also indicates a strategic pivot to address the growing demand for transaction vetting solutions in decentralized finance and blockchain ecosystems.

While the sale may influence the development and adoption of onchain authorization layers, the impact on specific tokens or protocols remains indirect at this stage, primarily affecting the infrastructure providers and their clients.