Smart accounts were required for seamless UX (gas abstraction, batching, session keys), while intent-based execution was necessary for agents to transact instantly across chains. Magic Labs selected Rhinestone as its core smart wallet and chain abstraction partner.
Learn how Magic Labs, the developer of Newton Protocol, used Rhinestone to deliver secure, instant crosschain automations inside their agentic trading demo.
“For this agentic trading demo, we were laser focused on our policy protocol and needed to go to market quickly with smart accounts and chain abstraction capabilities. Rhinestone gave us production-ready smart accounts and crosschain execution out of the box, letting us focus on policies and protocol infrastructure.”
— Sean Li, CEO, Magic Labs
Magic Labs is an embedded wallets provider that offers non-custodial key management for clean web3 onboarding flows. Since 2018, it has deployed over 53m wallets and serviced over 200k developers.
Newton Protocol extends Magic Labs’ wallet infrastructure with a decentralized policy engine that allows teams to define and enforce rules that govern what actions can or cannot take place onchain. Newton Protocol is applicable to a wide range of use cases, including automated trading and commerce, stablecoin issuance, treasury controls, and compliance enforcement (e.g., KYC and sanctions).
Their app highlights one such use case: policy-guarded agentic trading, combining Rhinestone’s smart account and chain abstraction infrastructure with Newton’s policy engine to enable automated trading without exposing users to crosschain complexity, excessive permissions prompting, or agent-driven execution errors.
To ship a safe, consumer-ready agentic trading experience, Magic Labs needed infrastructure that abstracted blockchain complexity without weakening security or control.
Smart accounts were required for seamless UX (gas abstraction, batching, session keys), while intent-based execution was necessary for agents to transact instantly across chains. Magic Labs selected Rhinestone as its core smart wallet and chain abstraction partner.
Magic Labs integrated Rhinestone’s smart account infrastructure to power Magic Newton’s streamlined agentic trading experience. This enabled gas abstraction, batching, and consistent UX across chains without custom integrations per network.
To enable complex delegations to AI agents without handing over full custody, Magic Labs combined Rhinestone’s onchain smart account and session key framework with Newton Protocol’s decentralized policy engine.
Rhinestone provides the onchain enforcement layer for deterministic constraints that can be expressed directly in smart contract logic, such as asset allowlist and denylists, maximum trade size and frequency, and time based execution windows.
Newton Protocol adds a policy layer above execution, extending the protection by enabling expressive controls that depend on offchain context and cannot be reliably enforced in pure smart contract logic. This includes policies informed by live and historical price feeds, asset volatility and market conditions, and external risk and compliance signals.
For AI to be the ultimate blockchain abstraction layer, agents must transact across chains instantly without the hassle of bridging and storing native tokens for gas. Rhinestone solves this problem through a simple API where agents express outcomes and Rhinestone’s Orchestrator and Relayer Market handle routing, execution, and settlement in seconds.
Building an always-on, autonomous AI agent framework requires combining smart account, permissioning, and crosschain systems. This approach reduces trust assumptions, coordination complexity, and long-term maintenance overhead. Magic Labs chose Rhinestone over alternative providers because it delivered all required primitives in a single, comprehensive system:
This allowed Magic Labs to focus on Newton Protocol’s policy layer, establishing informed controls over agent behavior before execution, rather than underlying crosschain execution infrastructure.
Magic came to Rhinestone with an ambitious product mission, timeline, and the need for a dependable smart account and chain abstraction partner that could help them stay focused on delivering their vision. The results speak for themself:
“By combining the Newton Protocol policy engine with Rhinestone’s execution rails, we’re enabling a world where AI agents and automated systems can operate safely, instantly, and within clearly defined rules. Automated trading is just one of many use cases.”
— Jaemin Jin, Cofounder & President, Magic Labs
