Today Magic announced a $52 million strategic funding round led by PayPal Ventures. The startup describes itself as a web3 wallet-as-a-service provider. In other words, it provides a wallet solution to brands, making it easy for them to onboard their customers. Clients include Macy’s and Mattel as well as Immutable, the web3 game protocol provider.
One of the most notable aspects of the funding round is many of the names are mainstream venture firms such as Cherubic, Synchrony and Northzone, alongside crypto specialists KX and Volt Capital. The latest round brings the total funds raised to $80 million.
The company says its non-custodial wallet solution avoids users needing to climb the blockchain learning curve and provides a familiar experience, similar to web2. Customers don’t have to generate seed phrases or add a browser extension and instead use email or social logins. Since launching in 2018, it has onboarded 20 million unique wallets and has 130,000 developers in its ecosystem.
“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. “Magic’s wallet creation service allows companies to reach millions of users on their apps and onboard customers who are new to web3.”
PayPal has invested in a few other web3 firms, including Paxos, which provides its crypto brokerage and blockchain intelligence firm TRM Labs.
