Magic Labs
Non-custodial embedded wallet platform for developers
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About Magic Labs
Magic Labs is a wallet-as-a-service provider that helps developers integrate non-custodial wallets into their apps via simple SDKs and APIs. Its core value lies in simplifying user onboarding: end users can create wallets with familiar methods like email OTP or social login, without managing seed phrases, while developers retain full control over the wallet infrastructure. The main pain point it addresses is the high friction in Web3 user acquisition and the technical complexity of building secure key management systems from scratch. Magic handles key sharding, multi-chain support, and compliance-ready security (e.g., TEE-based signing), allowing teams to focus on their product.
In the past six months (Feb–Aug 2026), Magic Labs has been actively expanding use cases beyond basic wallet login. In February, it showcased applications in prediction markets (F1 Predict Pro on Polymarket) and highlighted stablecoin infrastructure needs, while promoting its Wallet Kit for out-of-the-box email/social login flows. The most significant development came in July 2026: Magic Labs sold its embedded wallet business to Payward (parent company of Kraken), with the transition completed on August 1, 2026. The company then rebranded to Newton Labs, shifting focus to Newton Protocol, an onchain authorization layer that enforces compliance, identity, and risk policies before transaction settlement. This pivot reflects a strategic move from 'making crypto easy to enter' to 'making it safe to stay.' No major negative events were reported in the past two years, aside from the natural challenges of a business pivot.
Founded in 2018, Magic Labs pioneered the email-based non-custodial wallet, embedding key management in the browser via AWS Cognito and KMS. Its technical architecture, detailed in JonLuca's analysis, generates private keys client-side and encrypts them before storage, balancing UX with self-custody. In 2026, Magic sold its embedded wallet business to Payward and pivoted to Newton Protocol, a policy-enforcement layer for onchain compliance, marking a strategic shift from wallet infrastructure to institutional-grade transaction governance. Key milestones: 2018 launch of email login wallets; 2023-2024 expansion to 18,000+ developers and 53M+ wallets; 2026 transition to Newton Protocol with VaultKit SDK, addressing regulatory needs for RWAs and stablecoins. This evolution reflects the industry's move from user onboarding to compliance-critical infrastructure.
In the past six months, Magic Labs completed a strategic transformation. In July 2026, its wallet-as-a-service business was acquired by Payward, parent of Kraken, migrating over 60 million wallets and 200,000+ developers to Payward. The company rebranded as Newton Labs, fully focusing on Newton Protocol, an authorization layer for onchain finance that enforces compliance, identity, security, and risk policies before transaction settlement. It launched VaultKit SDK with integrations including Chainalysis and Hexagate, and the mainnet beta is live, supporting Euler Labs on Base and Ethereum. Future focus is building an "Internet of Policies," extending the authorization layer to RWAs, stablecoins, and agentic commerce.
Magic Labs, a wallet-as-a-service provider, was co-founded by Sean Li (CEO), Jaemin Jin (CPO), and Arthur Jen. Sean Li previously led product at Docker and founded Newton, while Jaemin Jin worked as a software engineer at Apple and Arthur Jen served as a technical fellow. All three graduated from the University of Waterloo. The company offers non-custodial embedded wallets with a focus on security and compliance, backed by SOC 2 Type 2, ISO 27001, CCPA, and GDPR certifications.
Recent team changes at Magic Labs:
Hiring: Aarti Utwani joined in May 2026 as Growth Marketing Manager, responsible for growth and marketing. See .
Departures: Advisor Dylan Hattem left in April 2026; Head of Engineering Dennis J.H. Won left in July 2026. Both have updated profiles on and . Overall, this reflects a shift toward adding a growth role while seeing changes in core engineering and advisory positions.