Unveiling unconventional magnetism at the surface of Sr$_2$RuO$_4$

Materials with strongly correlated electrons exhibit physical properties that are often difficult to predict as they result from the interactions of large numbers of electrons combined with several quantum degrees of freedom. The layered oxide perovskite Sr$_2$RuO$_4$ is a strongly correlated electron material that has been intensively investigated since its discovery due to its unusual physical properties. Whilst recent experiments have reopened the debate on the exact symmetry of the superconducting state in Sr$_2$RuO$_4$, a deeper understanding of the Sr$_2$RuO$_4$ normal state appears crucial as this is the background in which electron pairing occurs. Here, by using low-energy muon spin spectroscopy we discover the existence of magnetism at the surface of Sr$_2$RuO$_4$ in its normal state. We detect static weak dipolar fields yet manifesting below a relatively high onset temperature larger than 50 K, which reveals the unconventional nature of the observed magnetism. We relate the origin of this phase breaking time reversal symmetry to electronic ordering in the form of orbital loop currents that originate at the reconstructed Sr$_2$RuO$_4$ surface. Our observations set a reference for the discovery of the same magnetic phase in other materials and unveil an electronic ordering mechanism that can influence unconventional electron pairing with broken time reversal symmetry in those materials where the observed magnetic phase coexists with superconductivity.