Crypto Wallet Magic raises $52M to expand wallet-as-a-service solution

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Magic Labs Inc., the provider of a cryptocurrency wallet-as-a-service enterprise solution, today announced that it has raised $52 million in a strategic funding round led by PayPal Ventures .

Venture capital firms Cherubic, Synchrony, KX, Northzone and Volt Capital also participated in the investment, bringing the company’s total to over $80 million. The company said it will use the new funds to build more features and significantly expand its reach in the European Union and Asia-Pacific regions.

Magic provides a software development kit that allows businesses to add a crypto wallet into their apps for users to store their own cryptocurrency tokens as a managed service. Developers can plug in widgets that provide access to the wallet that provides gateways for purchasing cryptocurrency and even non-fungible tokens. Wallet users retain full control and custody of their tokens and private keys.

Non-fungible tokens, or NFTs, are a type of crypto asset that represents ownership of digital items such as artwork, video game items, or virtual tickets that can be stored in crypto wallets. They are part of Web3, otherwise known as Distributed Web, which is based on blockchain technology, backed by cryptocurrencies such as Bitcoin and Ethereum. Cryptocurrencies and NFTs can be bought, sold, and traded between users on blockchain networks and exchanged for cash.

All wallets can be built on top of the white label, supporting current login flow and company authentication so that it appears to be part of the app. As a result, users do not need to have advanced crypto or Web3 knowledge, which means novices and advanced users alike can use the wallets with ease.

“Since launching in 2018, we’ve seen a steady increase in Web3 use cases among large enterprises across a wide variety of verticals,” said co-founder and CEO Sean Li. Global brands have realized the potential of blockchain beyond crypto and are using it to engage with their customers and monetize the experience in new ways. Magic works closely with Fortune 500 companies to bring their Web3 use cases to everyday users.

Brands Magic has worked with include toy company Mattel Inc., department store Macys Inc., video game trading company Xsolla Inc., and Web3 game company Immutable.

Since its launch, Magic users have created more than 20 million unique wallets and its SDK is used by more than 130,000 developers.

“Mass adoption of Web3 is a hot topic, and Magic is facilitating that with a safe and simple solution,” said Alan Du, partner at PayPal Ventures. “Magic’s portfolio creation service enables companies to reach millions of users on their apps and onboard customers who are new to Web3.

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