Quick take:
- Magic has raised $52 million in a funding round led by PayPal Ventures.
- Cherubic, Synchrony, KX, Northzone, and Volt Capital also joined the round.
- The web3 Wallet-as-a-Service provider has now raised $80 million in total.
PayPal has expanded its web3 investment portfolio with a leading role in a $52 million round for Magic. The fundraising also attracted participation from Silicon Valley-based early-stage venture capital firm Cherubic Ventures, Synchrony Ventures – the VC arm of NYSE-listed Synchrony Financial, decentralised finance venture company – KX, Northzone, and Volt Capital.
Magic has now raised a total of $80 million as it seeks to accelerate the mass adoption of web3.
The company offers a Wallet-as-a-Service infrastructure to enterprise companies that include publicly listed retailer Macy’s and global toy manufacturer Mattel, as well as, video game monetisation company Xsolla and the layer 2 Ethereum scaling solution Immutable, among others.
Magic offers an enterprise-grade solution for web3 migration, allowing enterprises to onboard users onto web3 through products like customer loyalty programs, digital collectibles for employees, ticketing, and memberships, among others.
Commenting on the announcement, Sean Li, Magic’s co-founder and CEO said: “Our vision is to ignite new economic opportunities by enabling authentic digital ownership for everyone – starting with building the necessary infrastructure to onboard the next billion users to web3. With this new funding, we’re focused on expanding functionality and enabling growing use cases to continue delivering more value to our customers. We are also looking forward to making a deeper integration within the EU and APAC.”
Magic launched in 2018 to capitalise on the rising adoption of web3 technology in the mainstream sector. Over the last five years, the number of web3 use cases has continued to increase, from being just the technology behind digital assets like Bitcoin, Ethereum and altcoins, to powering the world of non-fungible tokens (NFTs), blockchain games, and the metaverse, among others.
Magic is working closely with Fortune 500 companies to bring their web3 use cases to everyday users,” Li added.
On the other hand, Alan Du, Partner at PayPal Ventures highlighted the important role Magic is playing in the mass adoption of web3 saying the company is facilitating the transition to web3 “with a safe and simple solution.”
“Magic’s wallet creation service allows companies to reach millions of users on their apps and onboard customers who are new to web3. We’re proud to be investing in Magic and believe the company will help drive the growing number of web3 use-cases amongst global brands.”
Once integrated into an online payments system, Magic’s wallet infrastructure SDK allows users to easily create non-custodial crypto wallets using existing email, socials, SMS, or federated logins, also allowing them to have complete control over their assets.
The company claims to have generated more than 20 million unique wallets to date while its SDK is used by over 130,000 developers.
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