Announcement highlights PayPal Ventures-backed Magic Labs’ move to make compliance plug-and-play and affordable for 200,000 developers and to bring institutional-grade safeguards to 50 million wallets through the integration of Newton Protocol’s onchain policy engine.
Magic Labs, the core developer behind the Newton Protocol, will integrate and make available the Newton SDK to its network of more than 200,000 developers and 50 million wallets, bringing programmable compliance directly into the transaction layer of Magic-powered applications.
The integration marks the largest deployment to date of programmable compliance infrastructure across a live developer network, enabling builders to design applications with verifiable policy enforcement and automated risk management built in.
“Magic secures the account. Newton Protocol secures the transaction,” said Jaemin Jin, Co-Founder and President of Magic Labs.
Magic Labs, the only wallet provider certified under SOC 2 Type 2, ISO 27001:2022, and HIPAA, will extend its security framework beyond onboarding and authentication to include policy enforcement at the transaction layer. With Newton Protocol, developers can automate compliance checks – such as KYC, AML, sanctions screening, or asset restrictions – without maintaining their own in-house risk or legal infrastructure.
“By bringing Newton Protocol to Magic developers, we’re making compliance a native part of the onchain development experience for hundreds of thousands of builders,” added Mohammad Akhavannik, Managing Director of the Magic Newton Foundation.
“This is a major step toward verifiable, compliant automation at scale while blockchain adoption continues to accelerate.”
From Polymarket to Programmable Policy
The announcement builds on the success of Magic Labs wallet infrastructure being used by Polymarket, the world’s largest prediction market, which processes billions in onchain volume. During the 2024 U.S. election night, Polymarket handled over $3 billion in transactions with zero downtime and sub-second response times, powered by Magic’s embedded wallets. To date, Magic Labs has supported over $8.9 billion in transaction volume for Polymarket alone.
Leveraging Newton Protocol, Magic Labs jointly developed a step-up 2FA policy framework for Polymarket that adds an extra layer of verification for high-risk actions as defined by Polymarket, dynamically enforcing withdrawal and transaction rules through Newton Protocol’s verifiable, privacy-preserving policy ledger. This collaboration with Polymarket proves the effectiveness of programmable, onchain compliance for real-world applications.
A New Standard for Onchain Compliance
Unlike traditional compliance systems hardcoded into smart contracts or confined to centralized rule engines, Newton Protocol provides a universal policy layer that works across chains and is compatible with the openness of DeFi.
Developers can define policy rules using offchain oracle data, such as proof-of-reserves, sanctions lists, or identity checks, that update as regulations change to produce verifiable onchain proofs of compliance.
Each policy evaluation generates a cryptographic attestation on Newton Explorer, with enforcement executed by a decentralized operator network secured through EigenLayer restaking.
For developers without dedicated compliance teams, Newton Protocol connects seamlessly to third-party data providers, from identity verification to wallet risk scoring, to help enforce global regulatory expectations such as OFAC, KYC/AML/CFT, SEC, and MiCA standards.
About Magic Labs
Magic Labs is the lead developer for Newton Protocol. In addition to protocol development, Magic offers secure, compliant and flexible TEE-based API wallets. Since 2018, Magic has brought over 50M wallets onchain and is trusted by 200K+ developers and leading brands like Forbes, Helium, Polymarket, WalletConnect, and Naver. Magic Labs has raised approximately $90 million from investors including PayPal Ventures, Placeholder, DCG, Volt Capital, Polygon, Balaji Srinivasan and others.
Follow updates on X at @magic_labs and @MagicNewton.
About Newton Protocol
Newton Protocol, secured by NEWT, is the first policy protocol designed to govern the new era of assets such as stablecoins, RWAs and AI, which require more compliance and composability than smart contracts allow. Newton Protocol establishes a secure framework to bring the $250T global investable asset market onchain, plus hundreds of trillions in RWAs, by creating policies for both offchain and onchain data.
Magic Newton Foundation oversees the research, development and community initiatives of the Newton Protocol. The Foundation’s mission is to bring programmable trust and compliance to the next generation of blockchain, AI and financial systems through open-source infrastructure and transparent governance. For a deeper dive into Newton Protocol, read the latest litepaper.
Follow updates on X at @newtfoundation.
Source: https://beincrypto.com/magic-labs-newton-protocol-integration/
