Magic Secures $52 Million in Funding Round Led by PayPal Ventures, Accelerating Web3 Adoption

By Tsunami On May 31, 2023

Magic, the prominent wallet-as-a-service (WaaS) provider, has announced the successful completion of a strategic funding round, raising an impressive $52 million. The funding round was led by PayPal Ventures, with participation from Cherubic, Synchrony, KX, Northzone, and Volt Capital. This recent injection of capital brings Magic’s total funding to over $80 million, a significant milestone for the company.

As the de facto WaaS provider, Magic is at the forefront of enabling the mass adoption of web3. It offers a seamless, enterprise-grade solution for companies seeking secure and user-friendly ways to transition their customers to the web3 ecosystem. Magic’s innovative platform facilitates a smooth migration to web3, unlocking a wide array of opportunities ranging from customer loyalty programs and digital collectibles to employee recognition, ticketing, memberships, and more.

We’re thrilled to announce our latest funding of $52M backed by @PayPal @cherubicvc @synchrony @northzoneVC @VoltCapital @KX. Magic is solving web3 onboarding and our mission is to give a wallet to every internet user.

👇 Read morehttps://t.co/9tdZsH3lxH

— Magic (@magic_labs) May 31, 2023

The esteemed clientele of Magic includes some of the most reputable brands in retail, music, fashion, and gaming. Renowned companies such as Mattel, Macy’s, Xsolla, Immutable, and others have placed their trust in Magic’s services, recognizing the potential of blockchain technology beyond cryptocurrency. Magic works closely with Fortune 500 enterprises to translate their web3 use cases into meaningful and accessible experiences for everyday users.

“Since our launch in 2018, we have observed a steady rise in web3 use cases among major enterprises across diverse industries. Global brands are awakening to the possibilities of blockchain technology and leveraging it to engage with their customers, monetizing experiences in novel ways,” said Sean Li, co-founder and CEO of Magic. “Our vision is to empower everyone with authentic digital ownership, starting with building the necessary infrastructure to onboard the next billion users to web3. With this new funding, we are focused on expanding our functionality, enabling growing use cases, and delivering even more value to our customers. We are also excited to deepen our integration within the EU and APAC regions.”

The significance of web3 mass adoption has not gone unnoticed, and Magic plays a pivotal role in facilitating this transition with its safe and user-friendly solutions. Alan Du, Partner at PayPal Ventures, expressed his confidence in Magic, stating, “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 among global brands.”

Magic’s offering includes secure, seamless, and near-instant non-custodial wallet creation. By implementing Magic’s Software Development Kit (SDK) in a vendor’s code base, wallets can be created instantly by users through existing email, social, SMS, or federated logins. The patented technology employed by Magic ensures unparalleled scalability while granting users complete control over their assets.

Furthermore, Magic stands apart from other WaaS providers with its enterprise-ready features and compliance with SOC2 Type 2, CCPA, GDPR, HIPAA, and ISO standards. Unlike other providers that require mobile login, Magic is accessible from any device, be it a phone, desktop, or tablet, making it truly inclusive for users with various web access points.

To date, Magic has generated more than 20 million unique wallets and boasts an impressive user base of over 130,000 developers utilizing its SDK. Magic’s industry-leading scalability enables the creation of over 2,000 wallets per second, outperforming the fastest alternatives currently available, which average 80-100 wallets per second.

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