The announcement highlights PayPal Ventures-backed Magic Labs’ move to make compliant plug-and-play affordable for 200,000 developers and bring institutional-grade protections to 50 million wallets through the integration of Newton Protocol’s on-chain policy engine.
Magic Labs, the leading developer of the Newton protocol, integrates and makes the Newton SDK available to its network of over 200,000 developers and over 50 million wallets, bringing programmable compliance directly into the transaction layer of Magic-powered applications.
This integration marks the largest-ever deployment of programmable compliance infrastructure across our live developer network, enabling builders to design applications with verifiable policy enforcement and automated risk management built-in.
“Magic protects your account. Newton Protocol protects your transactions,” said Jaemin Jin, co-founder and president of Magic Labs.
“By integrating Newton Protocol’s programmable policy layer into wallets, we provide developers with a compliance-ready framework that extends Magic’s trust model from onboarding to execution.”
Magic Labs, the only wallet provider certified under SOC 2 Type 2, ISO 27001:2022, and HIPAA, extends its security framework beyond onboarding and authentication to include policy enforcement at the transaction layer. Newton Protocol allows developers to automate compliance checks such as KYC, AML, sanctions checks, and asset limits without having to maintain their own internal risk or legal infrastructure.
“By introducing the Newton protocol to Magic developers, we will make compliance a native part of the on-chain development experience for hundreds of thousands of builders,” added Mohammad Akhavannik, Managing Director, Magic Newton Foundation.
“As blockchain adoption continues to accelerate, this is a major step toward verifiable, compliant automation at scale.”
From polymarkets to programmable policies
This announcement builds on the success of the Magic Labs wallet infrastructure used by Polymarket, the world’s largest prediction market processing billions of on-chain volumes. On the night of the 2024 US election, Polymarket leveraged Magic’s built-in wallet to process over $3 billion in transactions with zero downtime and sub-second response times. To date, Magic Labs has supported over $8.9 billion in transaction value on Polymarket alone.
Powered by the Newton Protocol, Magic Labs co-developed a step-up 2FA policy framework for Polymarket. It adds a layer of validation for high-risk behaviors defined by Polymarket and dynamically enforces withdrawal and trading rules through Newton Protocol’s verifiable and privacy-preserving policy ledger. This collaboration with Polymarket proves the effectiveness of programmable on-chain compliance for real-world applications.
The new standard for on-chain compliance
Unlike traditional compliance systems that are hard-coded into smart contracts or limited to a central rules engine, the Newton protocol works across the chain and provides a universal policy layer that is compatible with the openness of DeFi.
Developers can define policy rules using off-chain oracle data such as proof of reserves, sanctions lists, and identity checks. Policy rules are updated in response to regulatory changes and generate verifiable on-chain proof of compliance.
Each policy evaluation generates an encryption certificate on the Newton Explorer, and enforcement is performed by a decentralized network of operators secured by EigenLayer restaking.
For developers without a dedicated compliance team, Newton Protocol seamlessly connects 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 Lab
Magic Labs is the lead developer of Newton Protocol. In addition to protocol development, Magic provides a secure, compliant, and flexible TEE-based API wallet. Since 2018, Magic has brought over 50 million wallets on-chain and is trusted by over 200,000 developers and leading brands such as Forbes, Helium, Polymarket, WalletConnect, and Naver. Magic Labs has raised approximately $90 million from investors including PayPal Ventures, Placeholder, DCG, Volt Capital, Polygon, and Balaji Srinivasan.
Follow the latest updates on X at @magic_labs and @MagicNewton.
About the Newton protocol
The Newton Protocol, secured by NEWT, is the first policy protocol designed to manage a new era of assets such as stablecoins, RWA, and AI that require more compliance and configurability than smart contracts allow. By creating policies for both off-chain and on-chain data, Newton Protocol establishes a secure framework that brings the $250 trillion global investable asset market on-chain and hundreds of trillions more in RWA.
The Magic Newton Foundation oversees research, development, and community efforts for 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. To learn more about the Newton protocol, read our latest light paper.
Follow X updates at @newtfoundation.
