PayPal Ventures Leads $52M Funding Round for Web3 Firm Magic

San Francisco-based wallet-as-a-service (WaaS) provider, Magic, has successfully raised $52 million in a strategic funding round, with PayPal Ventures leading the investment. The funding round brings Magic’s valuation to just under $500 million, marking a significant milestone for the company.

The latest capital infusion will play a vital role in expanding Magic’s functionality and enabling new use cases. Additionally, the focus will be on making deeper integrations within the European Union (EU) and Asia-Pacific region (APAC), allowing Magic to tap into the growing demand for Web3 solutions in these markets.

A Safe and Simple Solution for Web3 Adoption

Alan Du, Partner at PayPal Ventures, emphasized the importance of mass adoption of Web3 and praised Magic for its role in facilitating this process through a safe and simple solution. He expressed PayPal Ventures’ pride in investing in Magic and their belief that the company will drive the growing number of Web3 use cases among global brands.

Sean Li, Magic’s co-founder and CEO, highlighted that global brands have begun to recognize the potential of blockchain technology beyond cryptocurrencies. These companies are now utilizing blockchain to engage with their customers and monetize the user experience in innovative ways. Magic is actively working with Fortune 500 companies to bring their Web3 use cases to a wider audience, bridging the gap between established brands and the decentralized world.

Impressive Stats and Developer Adoption

Magic’s track record speaks for itself, with more than 20 million unique wallets churned and over 130,000 developers using their software development kit (SDK). The company’s scalability is noteworthy, producing over 2,000 wallets per second (wps), a significant improvement over the fastest alternatives which operate at 80-100 wps. These impressive figures demonstrate Magic’s ability to handle the demands of an ever-expanding user base and developer community.

Magic is not the only company in the Web3 space betting on the wallet-as-a-service model. Coinbase, a prominent player in the cryptocurrency industry, recently announced its plans to launch a WaaS service that allows companies to customize blockchain wallets for their customers. This move highlights the increasing recognition of the importance of wallet infrastructure in supporting the adoption of blockchain technology.