PayPal Ventures Leads $52M Round for Crypto Firm Magic

Crypto wallet-as-a-service provider Magic has raised $52 million in a new strategic funding round led by PayPal Ventures.

The funding will help expand functionality to include more use cases and toward a deeper expansion within the European Union and Asia-Pacific region, according to the press release.

"Mass adoption of Web3 is a hot topic, and Magic is facilitating this with a safe and simple solution," said Alan Du, partner at PayPal Ventures, in the press release. "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."

Other participants in the funding round included Cherubic, Synchrony, KX, Northzone, and Volt Capital. Magic has now raised a total of more than $80 million.

Founded in 2018, San Francisco-based Magic provides enterprise-grade solutions that can help companies bring customers into Web3 in a safe, easy way.

The non-custodial wallet creation infrastructure involves a software development kit (SDK) that can be installed in a company’s code. Users can then instantly create a new wallet using their existing email, social media accounts or SMS.

Magic has generated more than 20 million unique wallets to date, according to the company, and the SDK is used by over 130,000 developers. Magic's clients span retail, music, fashion and gaming and include Mattel, Macy’s, Immutable, and more.