Magic Labs, a wallet infrastructure provider supported by PayPal Ventures, has launched Magic Newton, an AI agent platform designed to simplify crypto management and automate financial tasks. The Genesis launch of Newton is now live on Coinbase’s Layer-2 Base blockchain, aiming to provide a seamless user experience for handling crypto assets while maintaining security and transparency.
What Is Newton? The First Verifiable Crypto Copilot
According to the official press release, Newton is touted as the first verifiable crypto copilot that allows users to assign and automate financial tasks through intelligent onchain agents. By integrating cryptographic verification and reputation management, Newton ensures that agents follow precise instructions without compromising user security.
The platform introduces a “black triangle moment,” a reference to PlayStation’s early development milestone, to demonstrate that Newton’s automation stack is fully functional. This feature allows users to experience Newton’s capabilities through basic yet impactful use cases, such as automated dollar-cost averaging and yield optimization.
Sean Li, CEO of Magic Labs, emphasized the importance of maintaining trust amid growing automation, stating:
“What we’ve learned from onboarding 50 million wallets is that removing friction is only valuable if you maintain trust. Newton creates a trust layer for application abstraction, where users express financial goals, and AI agents execute them securely within verifiable boundaries.”
Advanced Asset Management Through AI Agents
Magic Newton is set to extend its functionalities to include advanced asset management strategies, enabling ecosystem participants to build and monetize agent-based automation services. The aim is to create a decentralized marketplace for secure, customizable automation tools.
Using AI agents, users can now delegate complex financial operations with simple commands. For example, a user can instruct the AI agent to “stake my tokens for the best yield,” and the agent will identify optimal staking opportunities across multiple blockchains. Each action is cryptographically verified to ensure accuracy and compliance.
“Billions flow through fragmented chains daily, yet even advanced users struggle with complexity,” Li noted. “Newton simplifies this by allowing users to set their financial goals, and AI agents handle the execution while maintaining full transparency and security.”
Prevent-Then-Verify Approach: How Newton Ensures Security
To secure user assets, Magic Newton employs a three-step “prevent-then-verify” model, consisting of:
- Proactive Protection:
- Smart Accounts issue temporary session keys to AI agents, limiting their access to user funds before any transaction is executed.
- Smart Accounts issue temporary session keys to AI agents, limiting their access to user funds before any transaction is executed.
- Verification Post-Execution:
- All actions performed by AI agents are verified through Trusted Execution Environments (TEEs), providing cryptographic proof that instructions were followed accurately.
- All actions performed by AI agents are verified through Trusted Execution Environments (TEEs), providing cryptographic proof that instructions were followed accurately.
- Reputation System:
- Newton establishes a trust framework where AI agents earn reputation points through consistent, correct behavior. Misconduct is penalized, creating a self-regulating mechanism to maintain trust.
- Newton establishes a trust framework where AI agents earn reputation points through consistent, correct behavior. Misconduct is penalized, creating a self-regulating mechanism to maintain trust.
Building on Past Success: 50 Million Wallets and Counting
Magic Labs has already onboarded over 50 million embedded wallets through partnerships with major platforms like Polymarket, Wallet Connect, Immutable, Helium, and Naver. The firm leverages its experience in Web2 user onboarding methods to offer a simple command center for managing complex crypto operations.
With its backing from PayPal, Lightspeed, Placeholder, and KX, Magic Labs is positioning Newton as a key infrastructure layer to reduce crypto complexities and drive mass adoption.
As Magic Labs continues to evolve, the integration of AI and blockchain through Newton may signal the next step in making decentralized finance more accessible, secure, and user-friendly for both retail and institutional participants.
