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Wallet-as-a-Service Provider Magic Raises $52M Led by PayPal Ventures

Wallet-as-a-service provider Magic raises $52 million in funding led by PayPal Ventures, aiming to expand adoption and enhance functionality in the Web3 space.

Wallet-as-a-Service Provider Magic Raises $52M Led by PayPal Ventures

Magic, a San Francisco-based wallet-as-a-service provider, has successfully raised $52 million in a strategic funding round led by PayPal Ventures. The funding round also saw participation from venture firms Cherubic, Synchrony, KX, Northzone, and Volt Capital, bringing the total funds raised by Magic to over $80 million since its inception in 2020.

Magic's software development kit (SDK) enables vendors to offer wallet creation to users through existing email, social, SMS, or federated logins. The platform provides a comprehensive user onboarding package, including authentication, fiat on-ramps, nonfungible token (NFT) minting, and NFT checkout. By implementing Magic's SDK, brands in retail, music, fashion, and gaming, such as Mattel, Macy's, Xsolla, and Immutable, can provide their users with seamless and secure wallet functionality.

The company is focused on increasing adoption and providing authentic digital ownership opportunities. With the newly raised funds, Magic plans to expand its functionality, enhance use cases, and deepen integration within the European Union and Asia-Pacific region. Magic also emphasizes compliance with various regulations, including the Systems and Organization Controls 2 Type II, the California Consumer Privacy Act, the European Union's General Data Protection Regulation, the Health Insurance Portability and Accountability Act, and International Organization for Standards protocols.

Since its founding in 2020, Magic has generated over 20 million unique wallets and has seen more than 130,000 developers utilize its SDK. The company claims that its proprietary technology can generate over 2,000 wallets per second, highlighting its scalability and efficiency.

The significant funding round reflects the growing interest in crypto and Web3 wallet providers. Other notable funding rounds in the industry include ConsenSys raising $200 million for its self-custodial wallet MetaMask and Ledger raising $109 million at a valuation of $1.4 billion for its crypto wallet. This trend underscores the increasing demand for self-custody solutions and the broader adoption of blockchain technology in various sectors.