PayPal Ventures-Backed Magic Labs Reveals Verifiable Crypto Agent Platform Newton on Base

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Sead Fadilpašić

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Sead Fadilpašić

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Sead specializes in writing factual and informative articles to help the public navigate the ever-changing world of crypto. He has extensive experience in the blockchain industry, where he has served...

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May 7, 2025

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Wallet infrastructure provider Magic Labs has announced the Genesis launch of Magic Newton, an AI agent platform that enables autonomous finance and simplifies crypto managing, on Coinbase’s layer-2 Base blockchain.

Per the press release shared with Cryptonews, Newton is “the first verifiable crypto copilot.” It allows users to assign tasks to intelligent onchain agents and automate them. The team claims that users stay in full control.

Furthermore, in order to ensure transparency, the Newton Protocol serves as Newton’s trust infrastructure. It merges preventative measures, cryptographic verification, and reputation management to keep agents trustworthy. This is regardless of the complexity of the financial action and the number of blockchains involved in the execution.

“We share Magic’s vision for the future of agentic commerce: creating verifiable ways to leverage AI agents to handle complex processes so that consumers don’t have to,” said Alan Du, Partner at PayPal Ventures. “As developers harness the potential of agentic AI, we believe that simplifying the user experience by enabling agent instructions in plain language while maintaining robust security and verifiability will be critical to bringing trust to agentic AI.”

Also, the Genesis launch introduces Magic Labs’ “black triangle moment.” This, the team explains, references PlayStation’s early development. At the time, rendering a simple black triangle proved that the entire graphics pipeline was functioning.

Therefore, it will serve as proof that the verifiable automation stack is integrated and operational. Also, it will “showcase Newton’s integrated automation stack and streamlined user interface through easy yet powerful use cases, including automated dollar-cost averaging.”

Meanwhile, Magic Labs plans to expand Newton to allow ecosystem participants to build and monetize secure agent-based automation services. This, it says, will enable more advanced asset management strategies.

‘Stake My Tokens for the Best Yield’

Magic Labs is backed by PayPal Ventures, Placeholder, Lightspeed, and KX. It has also partnered with a number of projects. which helped it surpass 50 million embedded wallets. These include Polymarket, Wallet Connect, Immutable, Helium, Forbes, and Naver.

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.”

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. 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 the Magic Newton Foundation and 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.