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Magic, a Web3 wallet as a service provider, announced today that it raised $52 million in a strategic funding round led by PayPal Ventures.
“We’re on the precipice of becoming the ubiquitous solution for mainstream adoption of Web3”, said Sean Li, Magic’s Chief Executive Officer and co-founder told Decrypt today.
The round had six total investors. Volt Capital, Synchrony Ventures, Northzone, Kx Technology Fund, and Cherubic Ventures participated in the round along with PayPal Ventures.
Li said “with the new funds, [the company] is looking to continue building best-in-class products, expand its enterprise offerings, and unlock more use cases.” The project has a “rapidly growing user base that we need to support”, he added.
Alan Du, managing partner at PayPal Ventures said in a press release that "Mass adoption of web3 is a hot topic, and Magic is facilitating this with a safe and simple solution.” He said [PayPal] is “proud to be investing in Magic and believes the company will help drive the growing number of [web3] use-cases amongst global brands."
Magic aims to simplify Web3 wallets through a software development kit, or SDK, that removes the need for seed phrases. Their solution continues to be non-custodial, however, and the company offers end-to-end onboarding via customizable wallets, NFT minting and authentication.
The team is also looking to expand in the United Kingdom, European Union and Asia-Pacific (APAC) region, Li told Decrypt, as global brands “realize the potential” of blockchain beyond crypto.
Launched in 2018, Magic has raised $83 million over four rounds, with their previous $27 million Series A led by Northzone, according to Crunchbase.
Today’s round comes amid news of funding for several other blockchain projects, which despite the ongoing bear market and layoffs across the cryptocurrency market, offers some optimism for builders in the space.