San Francisco-based wallet-as-a-service provider Magic announced on May 31 that it has successfully raised $52 million in a strategic funding round led by PayPal Ventures. The round also saw participation from venture capital firms Cherubic, Synchrony, KX , Northzone , and Volt Capital, bringing Magic's total funding raised to more than $80 million.
Magic's software is currently used by brands in retail, music, fashion and gaming, including Mattel, Macy's, Xsolla and Immutable. With this funding, Magic aims to increase adoption by providing a true opportunity for digital ownership, with plans to expand capabilities , enhance use cases and deepen integrations across the EU and APAC. By implementing Magic's software development kit (SDK), vendors can enable users to create wallets using existing email, social, SMS or federated logins. The software provides an all-in-one package for users to get started, including authentication, fiat onramp, non-fungible token (NFT) minting, and NFT checkout. The platform also says it complies with various regulations, such as System and Organizational Controls 2 Type II, the California Consumer Privacy Act, the European Union's General Data Protection Regulation, the Health Insurance Portability and Accountability Act, and the International Standards Organization Agreement. Founded in 2020, Magic has generated over 20 million unique wallets to date and over 130,000 developers using its SDK. The company cla aims its proprietary technology can generate more than 2,000 wallets per second.
Cryptocurrencies and Web3 wallet providers have attracted a lot of capital in recent years. In November 2021, Cointelegraph reported that ConsenSys, the Web3 software developer behind self-hosted wallet MetaMask, raised $200 million at a $3.2 billion valuation. Likewise, on March 30, 2023, crypto wallet provider Ledger raised $109 million at a $1.4 billion valuation following a surge in demand for self-custody. That same month, multi-chain wallet BitKeep announced it had raised $30 million at a $300 million valuation .
