Web3: PayPal Ventures Leads $52M Round for Magic, a Non-Custodial Wallet-as-a-Service

Non-custodial wallet-as-a-service (WaaS) provider and web3 onboarding solution to expand its enterprise-ready product suite to support growing customer base.

Magic, which claims to be the leading wallet-as-a-service (WaaS) provider, has announced it has raised $52 million in a strategic funding round led by PayPal Ventures, “with participation from Cherubic, Synchrony, KX, Northzone, and Volt Capital.” The new round “brings the total raised to more than $80M.”

Magic is “enabling web3 mass adoption by serving as the de facto WaaS provider for companies that are searching for safe and easy ways to bring their customers over to web3.”

Magic provides “a seamless enterprise grade, low-effort solution to web3 migration that is opening up lucrative new avenues from customer loyalty programs and digital collectibles to employee recognition, ticketing, memberships, and more.”

Magic’s customers “are some of the most trusted brands across retail, music, fashion and gaming including Mattel, Macy’s, Xsolla, Immutable, and more.”

Sean Li, Magic’s co-founder and CEO, said:

“Since launching in 2018, we have witnessed a steady increase in web3 use-cases among large enterprises across a wide variety of verticals. Global brands have realized the potential of blockchain beyond crypto and are utilizing it to engage with their customers and monetize the experience in new ways. Magic is working closely with Fortune 500 companies to bring their web3 use cases to everyday users. 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.”

Alan Du, Partner at PayPal Ventures, said:

“Mass adoption of web3 is a hot topic, and Magic is facilitating this 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.”

Magic reportedly “provides secure, seamless, and near-instant non-custodial wallet creation. Once Magic’s SDK is implemented in a vendor’s code base, wallets can be instantaneously user-created through existing email, social, SMS, or federated logins.”

Magic’s patented technology “allows for unparalleled scalability and provides users with complete control over their assets.”

This, coupled “with its enterprise-ready features and SOC2 Type 2, CCPA, GDPR, HIPAA, and ISO compliance, sets Magic apart from other WaaS providers. While other WaaS providers require login via mobile,”

Magic is “accessible from any user device – phone, desktop, or tablet – making it truly available to all people regardless of the ways in which they connect to the web.”

To date, Magic has “generated more than 20 million unique wallets and its SDK is used by over 130,000 developers.”

Magic’s scalability “produces upwards of 2,000 wallets per second [wps] versus the fastest alternatives at 80-100 wps.”

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