On May 31, San Francisco-based wallet-as-a-service (WaaS) provider Magic announcement that it successfully raised $52 million in a strategic funding round led by PayPal Ventures. The funding round also saw participation from venture capital firms Cherubic, Synchrony, KX, Northzone and Volt Capital, bringing Magic’s total funds raised to over $80 million.
Magic’s software is currently used by retail, music, fashion and gaming brands including Mattel, Macy’s, Xsolla and Immutable. With this funding, Magic aims to increase adoption by providing authentic digital ownership opportunities and plans to expand functionality, improve use cases and deepen integration within the European Union. and the Asia-Pacific region.
By implementing Magic’s software development kit (SDK), vendors can enable users to create wallets using existing email, social media, SMS, or federated connections. The software provides an all-in-one package for user onboarding, which includes authentication, fiat on-ramps, non-fungible token (NFT) minting, and NFT payment.
We are thrilled to announce our latest funding of $52 million backed by @PayPal @cherubicvc @synchrony @northzoneVC @VoltCapital @KX. Magic solves web3 onboarding and our mission is to give every internet user a wallet.
Learn morehttps://t.co/9tdZsH3lxH
— Magic (@magic_labs) May 31, 2023
The platform also states that it is compliant with various regulations, such as SOC2 Type 2, CCPA, GDPR, HIPAA, and ISO. Founded in 2020, Magic has generated over 20 million unique wallets to date, with over 130,000 developers using its SDK. The company claims its proprietary technology can generate over 2,000 wallets per second.
Crypto and Web3 wallet providers have attracted major funding rounds in recent years. In November 2021, Cointelegraph reported that ConsenSys, the Web3 software developer behind self-custodial wallet MetaMask, raised $200 million at a valuation of $3.2 billion. Similarly, on March 30, 2023, crypto wallet provider Ledger raised $109 million at a valuation of $1.4 billion after an increase in demand for self-custody. In the same month, multi-chain wallet BitKeep announced that it had raised $30 million at a valuation of $300 million.
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