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On May 31, San Francisco-based Wallet-as-a-Service (WAaS) provider Magic announced that it had 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 Magic’s total funding to over $80 million.
Magic’s software is currently used by brands in retail, music, fashion and gaming including Mattel, Macy’s, Xsola and Immutable. With the funding, Magic aims to increase adoption by providing authentic digital ownership opportunities and plans to expand functionality, enhance use cases, and deepen integration within the EU and Asia-Pacific region.
By implementing Magic’s software development kit (SDK), sellers can enable users to create wallets using existing email, social, SMS or federated logins. The software provides an all-in-one package for user onboarding, which includes authentication, fiat on-ramp, non-fungible token (NFT) mint, and NFT checkout.
We’re Thrilled to Announce Our Latest Funding of $52M @PayPal @cherubicvc @synchrony @northzoneVC @VoltCapital @kx, Magic Web3 is solving 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 platform also says that it complies with various regulations, such as SOC2 Type 2, CCPA, GDPR, HIPAA, and ISO. Founded in 2020, Magisk 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 over 2,000 wallets per second.
Crypto and web3 wallet providers have attracted sizable funding rounds in recent years. In November 2021, Cointelegraph reported that ConsenSys, the web3 software developer behind the self-custodial wallet MetaMask, raised $200 million at a $3.2 billion valuation. Similarly, on March 30, 2023, crypto wallet provider Ledger raised $109 million at a valuation of $1.4 billion following an increase in demand for self-custody. In the same month, multichain wallet BitKeep announced that it raised $30 million at a $30 million valuation.
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