The company has sold its embedded wallet business to Payward, the asset sale frees Newton Labs to focus on securing the trillions in capital moving onchain
Magic Labs today announced it has sold its embedded wallet business to Payward, Inc., a unified financial infrastructure platform advancing an open, global financial system. The transaction is an asset sale; Magic Labs, Inc. and Payward remain separate, independent companies. Following the close, wallet customers will be serviced by Payward Services, and Magic Labs will move forward as Newton Labs, focused on building the authorization layer for onchain finance.
This transition allows us to put our full energy behind Newton, the authorization layer for onchain finance, while the wallet business moves to a team committed to serving our customers”
— Sean Li, CEO of Newton Labs
Since pioneering embedded wallet infrastructure in 2018, Magic Labs has created more than 60 million wallets and supports over 200,000 developers across consumer and institutional applications.
Newton Labs is the core developer of Newton Protocol, the authorization layer for onchain finance. Newton lets any asset or application enforce compliance, security, and risk policies on a transaction before it settles onchain, turning rules that today live in operational processes and off-chain systems into automatic execution anyone can verify. The protocol entered mainnet beta in June 2026.
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“This transition allows us to put our full energy behind Newton, the authorization layer for onchain finance, while the wallet business moves to a team committed to serving our customers,” said Sean Li, CEO of Newton Labs.
“Embedded wallets are becoming foundational infrastructure for every onchain product. Magic Labs’ technology lets us bring that layer in-house and offer partners a complete, integrated stack – exchange, custody, and now wallets – without stitching together multiple providers,” said Mark Greenberg, Chief Commercial Officer of Payward.
What changes for customers
Wallet customers will be serviced by Payward Services following the close of the transaction, which is expected in the coming weeks. Products and integrations continue to operate without interruption, and no customer action is required. Every customer will receive direct communication about the transition, and vendors and counterparties whose agreements are affected will be notified directly.
What comes next for Newton Labs
Newton Labs’ first product built on Newton Protocol is VaultKit: a composable set of policies that institutional-grade vaults use to enforce compliance, security, identity, and risk logic inside every transaction, before it settles giving capital allocators a shared, transparent standard so they can verify the rules are being enforced, instead of trusting that they are. Vaults are the starting point; the same authorization layer extends to RWAs, stablecoins, and agentic commerce & finance.
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