L2 Capital Selects Newton for Compliant Private-Market Tokenization

Powered by Newton, the platform will tokenize RWAs, starting with pre-IPO stocks, enforcing fund rules before settlement with automated compliance and privacy.

NEW YORK, NY, UNITED STATES, October 14, 2026 /EINPresswire.com/ -- L2 Capital, a technology investment firm investing across venture, pre-IPO growth and public markets, has signed on as a founding partner of the tokenization platform being developed by Newton Labs for private and public-market holdings.
L2 Capital plans to onboard selected holdings in late-stage, pre-IPO technology and AI companies, including existing holdings from its portfolio and opportunities it originates with other firms. The partnership is targeting tokenized holdings totaling $500 million within 24 months of the platform's launch. Eligible investors would be able to hold these positions onchain and use them as collateral in permitted DeFi lending markets.

Ownership of private and public-market holdings is governed by granular rules on investor eligibility and transferability, where compliance with those terms is typically managed through manual review, driving significant operational overhead for managers and counterparty risk for anyone who relies on their enforcement. The platform is designed to let fund managers codify these terms onchain into each tokenized holding, defining investor eligibility, lock-ups, holding limits, transfer restrictions, and permitted blockchains and apps.

"We want eligible investors to access investments that have historically been out of reach, and to borrow against those holdings without having to sell," said Dennis Won, Co-founder and CTO of Newton Labs. "With L2 Capital, we're building toward that by bridging these investments with decentralized finance (DeFi) applications while enforcing the requirements institutions set and keeping sensitive policies and investor information confidential."

Most tokenized assets today enforce compliance only at issuance or by whitelisting wallets, so the issuer's rules can stop applying once a token moves into a lending market or other DeFi application. Newton takes a different approach. Newton Protocol, which will serve as the platform's authorization layer, checks every supported transfer, loan or other action against the fund manager's policies before settlement, in any permitted application, using onchain and offchain data such as investor credentials and holding periods, and records each decision onchain as a signed authorization result anyone can verify. The platform is also being designed to support confidential policies, so institutions can apply sensitive requirements without disclosing them publicly, with controlled access for regulators, auditors and other authorized parties.

"Most of the value in today's leading companies is created before they ever list, and access to that value has been limited to a small circle," said Kevin Lee, Co-founder and Partner, L2 Capital. "We have spent years widening that access, and tokenization is the next step: it will let eligible investors participate in our allocations in a compliant way. Investors in our holdings want to know the rules are being followed, not take our word for it. That is why we chose Newton."
The platform is designed to support multiple fund managers and administrators, as well as other financial institutions. Participation will be restricted to eligible institutional and professional investors in licensed jurisdictions. Firms interested in the platform can sign up for updates here.

About Newton Labs
Newton Labs (formerly Magic Labs) is the core developer of Newton Protocol, the authorization layer for onchain finance that enables institutions, asset issuers, and decentralized protocols to enforce compliance, identity, security, and risk policies in real time, before any transaction settles, with results anyone can verify onchain. Founded in 2018, the company pioneered embedded wallet infrastructure, creating more than 60 million wallets. In 2026, it sold that business to Payward Services, the parent company of Kraken, to focus exclusively on securing safe passage for the trillions in capital moving onchain. Newton Labs is backed by PayPal Ventures, Cherubic, DCG, CoinFund, Lightspeed Venture Partners, Tiger Global, and Placeholder.
For more information, visit newton.xyz.

About L2 Capital
L2 Capital is a full-lifecycle technology investment platform built for the AI era, investing across venture, pre-IPO growth, tactical and hybrid strategies, and public equities. Through its licensed asset management affiliate, L2 Capital manages capital for institutions, family offices and professional investors, and originates and structures access to late-stage private companies on their behalf. Its venture arm, L2 Iterative Ventures, backs early-stage blockchain infrastructure, with a particular focus on zero-knowledge proof systems and modular, multi-chain architectures, from a team spanning Silicon Valley and Asia. L2 Capital's founders bring backgrounds in investment banking, structured finance, public-market investing and Web3 engineering, and have led capital deployment across private and public markets.
For more information, visit l2-cap.com.

Media contacts
Aarti Utwani
press@newton.xyz

Aarti Utwani
Newton Labs
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