On May 31, Magic, a San Francisco-based wallet-as-a-service (WaaS) provider, advertisement which had managed to raise USD 52 million in a strategic financing round led by PayPal Ventures. The funding round also featured participation from venture capital firms Cherubic, Synchrony, KX, Northzone, and Volt Capital, bringing the total funds raised by Magic to more than $80 million.
Magic software is currently used by retail, music, fashion and gaming brands including Mattel, Macy’s, Xsolla and Immutable. With the funding, Magic aims to increase adoption by providing true 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 SDK, providers can enable users to create wallets using existing email, social, SMS, or federated logins. The software offers an all-in-one package for user onboarding, including authentication, fiat on-ramps, non-fungible token minting (NFT), and NFT Checkout.
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.
—Magic (@magic_labs) May 31, 2023
We are delighted to announce our latest $52 million financing backed by @PayPal @cherubicvc @synchrony @northzoneVC @VoltCapital @KX. Magic is solving the addition of web3 and our mission is to give a wallet to every Internet user.
The platform also says 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 that its proprietary technology can generate more than 2,000 wallets per second.
Web3 and cryptocurrency wallet providers have attracted major funding rounds in recent years. In November 2021, Cointelegraph reported that ConsenSys, the Web3 software developer behind self-custody wallet MetaMask, raised $200 million at a $3.2 billion valuation. Similarly, on March 30, 2023, cryptocurrency wallet provider Ledger raised $109 million at a valuation of $1.4 billion after a spike in self-custody demand. That same month, multi-chain wallet BitKeep announced that it raised $30 million at a $300 million valuation.
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