Magic Raises $52 Million Led by PayPal Ventures

On May 31, San Francisco-based wallet-as-a-service (WaaS) provider Magic announced completing a $52 million strategic funding round led by PayPal Ventures.

Additionally, venture capital firms Cherubic, Synchrony, KX, Northzone, and Voltage Capital participated in the funding round, bringing Magic’s total funding to over $80 million.

Magic’s software is currently utilized by Mattel, Macy’s, Xsolla, and Immutable, among others, in the retail, music, fashion, and gaming industries.

With the funding, Magic intends to increase adoption by providing authentic digital ownership opportunities, expanding functionality, improving use cases, and deepening integration in the European Union and Asia-Pacific.

By implementing Magic’s software development kit (SDK), vendors can enable users to create wallets using their existing email, social, SMS, or federated login credentials.

The software includes authentication, fiat on-ramps, nonfungible token (NFT) minting, and NFT Checkout in a comprehensive package for user onboarding.

Additionally, the platform claims that it complies with numerous regulations, including SOC2 Type 2, CCPA, GDPR, HIPAA, and ISO.

Magic, founded in 2020, has produced over 20 million unique wallets, with over 130,000 developers using its SDK. The company asserts its proprietary technology can make over 2,000 wallets per second.

In recent years, crypto and Web3 wallet providers have attracted substantial funding rounds.

ConsenSys, the Web3 software developer behind the self-custodial wallet MetaMask, reportedly raised $200 million at a valuation of $3.2 billion in November 2021.

Ledger, a provider of cryptocurrency wallets, raised $109 million at a valuation of $1.4 billion on March 30, 2023, following a surge in demand for self-custody.

BitKeep, a multichain wallet provider, announced in the same month that it had raised $30 million at a valuation of $300 million.