Magic Labs and Newton Protocol Bring Onchain Policy and Compliance to 200K Developers and 50M Wallets

Magic Labs and Magic Newton Foundation are collaborating to offer pre-transaction risk and compliance controls with the integration of the Newton Protocol SDK into the Magic Labs developer platform.

As the only SOC 2 Type 2, ISO 27001:2022, and HIPAA-certified wallet provider, Magic Labs has set the benchmark for secure onchain onboarding. Magic infrastructure helps developers meet compliance standards while still building at the edge of crypto innovation.

Now, with the integration of the Newton Protocol SDK, those same developers will be able to apply programmable compliance and risk policies directly to user transactions. Newton Protocol secures the transaction layer through programmable compliance.

Sean Li, Co-Founder and CEO of Magic Labs, added: “Compliance shouldn’t slow innovation. The synergy with Newton Protocol means developers can seamlessly implement compliance-as-code to meet security and regulatory standards without needing to be experts themselves.”

For developers without in-house security and compliance teams, Newton Protocol connects to a range of third-party data providers, from identity verification services to wallet risk scoring, to help enforce onchain policies aligned with global regulatory expectations, such as OFAC sanctions lists and KYC/AML/CFT obligations to securities oversight (SEC) and digital asset rules (MiCA). This gives Magic Labs developers access to the same level of security and risk management controls typically reserved for enterprise and institutional teams.

#Building a secure onchain future through compliance-as-code

Magic Labs chose Newton Protocol because of its versatile and secure architecture. Unlike decentralized engines that hardcode rules into smart contracts, Newton Protocol separates policy evaluation from the contract itself. Its decentralized operator network, secured through EigenLayer restaking, ensures policy evaluations continue even if individual nodes go offline, eliminating the single-point-of-failure downtime risks seen in centralized systems.

This design allows Magic Labs developers to implement compliance and risk policies that are:

• Modular: define once, apply across contracts or chains
• Composable: combine onchain state with offchain data sources
• Updatable: adapt to new regulations or providers without redeploying
• Verifiable: every evaluation produces a cryptographic attestation viewable in the Newton Explorer
• Credibly neutral: executed by a decentralized operator network secured through EigenLayer restaking

The collaboration bridges the gap between account security and transaction compliance, empowering developers to build applications that are both user trusted and institution grade.

Mohammad Akhavannik, Managing Director of Magic Newton Foundation, added: “By bringing Newton Protocol to Magic developers, we’re making transaction compliance a native part of the onchain development experience.”

Learn more about Newton Protocol’s programmable policy engine here, and stay tuned to official Magic Labs and Magic Newton Foundation channels for updates on the integration.