San Francisco-based company Magic has raised $52 million in a funding round led by PayPal Ventures, valuing the firm at nearly $500 million.
Web3 Wallet Provider Magic Raises $52 Million from PayPal Ventures and Others
San Francisco-based company Magic has raised $52 million in a funding round led by PayPal Ventures, valuing the firm at nearly $500 million. Magic differentiates itself by offering a white label version of its crypto wallet, allowing corporate clients to provide wallets to customers who may be unfamiliar with the complexities of Web3.
Clients such as Mattel and Macy's have utilized Magic's wallet tools for storing Hot Wheels NFT collectibles and incorporating Magic wallets into digital Thanksgiving Day parade activities, respectively. Magic's CEO, Sean Li, aims to offer Web3 tools accessible through familiar Web2-style interfaces, simplifying the onboarding process and ensuring wallets remain noncustodial.
Magic's business model revolves around providing software development kits (SDKs) to corporate clients, enabling them to tailor wallets to their specific requirements. Li compares Magic's wallet-as-a-service (WaaS) approach to payment processor Stripe or Twilio, which offer software for businesses. The company has created over 20 million wallets in collaboration with its corporate partners and remains committed to driving mass adoption of Web3 with a safe and user-friendly solution. Magic's funding round, supported by Cherubic, Synchrony, KX, Northzone and Volt Capital, brings its total capital raised to over $80 million.
Coinbase also introduced its own WaaS initiative earlier this year, highlighting the growing interest in incorporating crypto tools into business operations. Magic's long-term vision is to provide every internet user with a digital wallet, aligning with its goal of promoting widespread adoption of Web3.