PayPal-Backed Magic Labs Drops Newton: A Crypto Agent Platform Built on Base

Magic Labs—the blockchain infrastructure firm backed by PayPal—just unveiled Newton, a verifiable crypto agent platform running on Coinbase’s Base network. The move signals deeper institutional interest in on-chain identity solutions.

Why it matters: Newton could streamline wallet authentication while giving enterprises audit-ready compliance tools. Think of it as a digital notary for blockchain transactions—with PayPal’s stamp of approval.

The cynical take: Another ’groundbreaking’ middleware solution that’ll get acquired by a legacy fintech firm in 18 months. But hey—at least it’s not another memecoin.

‘Stake My Tokens for the Best Yield’

Magic Labs is backed by,,, and. It has also partnered with a number of projects. which helped it surpass 50 million embedded wallets. These include,,,,, and.

Furthermore, Magic Labs allows familiar Web2 login methods, which helps the 200,000 dapp developers in its ecosystem increase user onboarding.

“What we’ve learned from onboarding 50 million wallets is that removing friction is only valuable if you maintain trust,” said Sean Li, co-founder and CEO of Magic Labs. The real challenge is what happens after access, he says. “Billions Flow through fragmented chains daily, yet even advanced users struggle with complexity. Newton creates the trust layer for application abstraction, where users simply express their financial goals and AI agents execute as instructed within verifiable boundaries.”

AI is scaling intelligence.
Crypto is scaling trust.

Their convergence is the next crypto meta.@MagicNewton is your portal to experience it. https://t.co/HOaRjxMbQ7

Now, the team says, Magic Newton utilizes trusted AI automation to enhance crypto UX. It provides a “simple command center” to replace handling multiple complex interfaces. Users instruct AI agents on what they want to accomplish, and the agent will find the best way to do it within what’s permitted.

Per the announcement, users can direct the agents to “’stake my tokens for the best yield,’ and they [will] help securely execute these tasks across multiple blockchains, with cryptographic proofs ensuring they’re following the user’s exact instructions.”

Also, this means that users don’t need to give their private keys or create separate wallets for agents, which compromises security and worsens UX.

The Newton Protocol, developed by theand Magic Labs, utilizes the prevent-then-verify” approach. This comprises three steps. Proactive protection sees Newton utilizing Smart Accounts to issue temporary session keys to AI agents before execution.

Then, after execution, all agent activity is validated through Trusted Execution Environments (TEEs). And finally, Newton will establish a trust framework where agents earn reputation through “proven, consistent, correct behavior over time,” incentivizing reliability and penalizing misbehavior, the announcement says.