Veriff enables on-chain proof of address for compliant blockchain transactions

About Magic Labs and Newton Protocol

Magic Labs is a developer platform that helps companies build secure, user-friendly blockchain applications for financial services. Known for pioneering embedded wallets with passwordless login, Magic Labs has helped onboard more than 50 million users to blockchain-based products, including applications used by major consumer brands and enterprises.

As blockchain adoption accelerates, Magic Labs has expanded its focus beyond onboarding. Newton Protocol is the company’s next step, enabling developers to embed enforceable risk, fraud, and compliance policies directly into smart contracts.

“Our mission has always been about building trust into onchain environments,” said Sean Li, co-founder of Magic Labs. “Once users are onboarded, the next challenge is making sure transactions are safe, compliant and trustworthy, without breaking what makes blockchain powerful in the first place.”

Newton Protocol enforces policies on-chain, making them auditable, transparent and enforced by code rather than by a central authority. This approach allows developers to introduce compliance controls that cannot be bypassed, even in decentralised environments.

What business problem did Veriff solve for Magic Labs?

As blockchain-based financial services mature, developers face a fundamental challenge. They must meet real-world regulatory requirements while preserving a seamless user experience and the open nature of decentralised systems.

In traditional blockchain applications, identity checks and compliance controls are often handled off-chain or at the front-end level. These controls can be fragmented, opaque and vulnerable to circumvention once users export their wallets or interact directly with smart contracts.

“Blockchain is incredibly powerful, but it also means you can send anything to anyone, instantly and irreversibly,” said Li. “Once a transaction is on-chain, there’s no undo button. That makes pre-transaction risk and compliance checks absolutely critical.”

Magic Link needed a way to bring real-world identity signals, such as proof of address, directly into on-chain policy enforcement. Developers building on Newton Protocol required verified, trustworthy data that could determine whether a transaction should proceed, before it was executed on-chain.

Veriff addressed this challenge by providing a proof of address capability that could be integrated into Newton Protocol as a trusted policy data source.

What made the difference to Magic Labs when choosing Veriff?

Trust and credibility are central to Magic Labs’s approach. As a company working closely with enterprises, financial institutions, and regulators, Magic Labs prioritises partners that meet high standards for security, privacy and compliance.

Veriff’s proof of address solution aligned closely with Newton Protocol’s design philosophy. It allows real-world identity verification to inform on-chain decisions, while keeping sensitive personal data off-chain and protected.

“Real-world compliance needs real-world data, but blockchain systems don’t have an easy way to access that,” Li said. “Working with Veriff lets us bridge that gap in a way that’s verifiable, privacy-preserving and usable by developers.”

Veriff also stood out for its ability to scale globally and support a wide range of regulated use cases, from jurisdiction-based access controls to financial compliance requirements.

What was the impact of implementing Veriff?

By integrating Veriff’s proof of address into Newton Protocol, developers can enforce compliance directly at the smart contract level for the first time.

Developers can now create policies that verify whether users meet jurisdictional or residency requirements before transactions such as token issuance, transfers, or participation in regulated financial products are allowed. These checks are enforced on-chain and cannot be bypassed through alternative interfaces or scripts.

“Before this, most controls were really just front-end protections,” said Li. “With Newton, the enforcement lives on-chain, so even if a wallet is exported, the compliance rules still apply.”

The integration also improves transparency and trust. Compliance logic is defined in publicly visible policies, and enforcement can be independently verified. At the same time, user privacy is preserved through off-chain processing and cryptographic proofs that confirm compliance without exposing personal data.

For Magic Link, this represents a major step towards making blockchain infrastructure viable for regulated financial services at scale. For developers, it significantly reduces the effort required to build compliant systems by replacing bespoke implementations with reusable policy components.

About Veriff

Veriff is an identity verification and authentication platform that helps build trust in the online world. Our AI-native technology combines the power of automation with human feedback to rapidly and accurately verify user identities across the globe with minimal friction. Our platform analyzes thousands of data points, from biometrics to government documents, to ensure the person is who they say they are. Veriff is the preferred partner for innovative, growth-driven organizations, including online marketplaces, financial services, gaming, and mobility companies, and sectors.

Veriff’s trust infrastructure enables businesses to comply with regulations, safeguard users, fight fraud, and achieve global growth. When trust is built, opportunities are limitless. But trust isn’t just about technology. It’s about people and protecting identities, fostering transparency, and creating an internet where businesses and individuals can connect with confidence, increasing trust and making the internet a force for good.