Payments giant PayPal is investing millions in San Francisco-based crypto wallet company Magic in its latest digital asset venture.
According to Magic's press release, the wallet-as-a-service (WaaS) provider has raised $52 million in a strategic funding round led by PayPal Ventures.
According to Alan Du, a PayPal Ventures partner,
"Mass adoption of Web3 is a hot topic, and Magic is facilitating that with a secure and simple solution. Magic's portfolio creation service enables businesses to reach millions of users on their apps and integrate customers who are new to Web3 We are proud to invest in Magic and believe the company will help increase the number of Web3 use cases among global brands.
The funding round also saw investments from Cherubic, Synchrony, KX, Northzone and Volt Capital, bringing the total amount Magic has raised to $80 million, according to the release.
Magic, a 2018 tech startup, provides a non-custodial crypto wallet infrastructure for companies that want to give their customers a simple and secure Web3 experience.
The company uses a unique Software Development Kit (SDK) which is implemented to allow customers to instantly create wallets using their existing email, social media accounts or SMS. To date, Magic has created more than 20 million unique wallets, according to the release.
Magic's current customers include a number of well-known brand companies, including Mattel, Macy's, Xsolla, and Immutable.
Magic co-founder Sean Li said the funding will allow the company to expand its presence in the European Union (EU) and Asia-Pacific (APAC) region.
“With this new funding, we are focused on expanding functionality and enabling growing use cases to continue to deliver more value to our customers. We also look forward to deeper integration within the EU and APAC.
Paypal's recent filing with the United States Securities and Exchange Commission (SEC) shows that the company held approximately $604 million in digital assets, including $291 million in Bitcoin (BTC) and $250 million in digital assets. 'Ethereum (ETH), in the fourth quarter of 2022.
Last December, they also announced a partnership with crypto firm ConsenSys to integrate PayPal into MetaMask, one of the most popular crypto wallets in the world.
In April, Venmo, which is owned by PayPal, announced plans to allow its more than 70 million users to transfer crypto to other Venmo users as well as move digital assets to external wallets and exchanges. .
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Feature image: Shutterstock/Tithi Luadthong