Payment giant PayPal is investing millions of dollars in San Francisco-based crypto wallet company Magic.
According to Magic’s press release, the wallet service (WaaS) provider has raised $52 million in a strategic funding round led by PayPal Ventures.
Alan Du of PayPal Ventures, said:
“Web3 mass adoption is a hot topic and Magic is supporting this with a simple and secure solution. Magic’s wallet creation service allows companies to reach millions of users on their apps and new customers using Web3. We are proud to invest in Magic and believe the company will help drive the growing number of Web3 use cases among global brands.”
The funding round also saw investment from Cherubic, Syny, KX, Northzone and Volt Capital, bringing the total raised by Magic to $80 million, according to the press release.
Magic, a 2018 tech startup, provides crypto wallet infrastructure for companies that want to give their customers an easy and secure Web3 experience.
The company uses a unique software development kit (SDK) implemented to allow customers to create wallets instantly using their email, social media accounts or SMS. To date, Magic has generated more than 20 million unique wallets, according to the press release.
Magic’s existing customers include a number of well-known brand companies including Mattel, Macy’s, Xsolla and Immutable.
Magic’s co-founder, Sean Li, said the funding will allow the company to expand its presence into the European Union (EU) and Asia-Pacific (APAC) regions.
Paypal’s recent filing with the U.S. Securities and Exchange Commission (SEC) shows that the company holds about $604 million in digital assets, including $291 million worth of Bitcoin (BTC) and Ethereum. (ETH) worth $250 million, by Q4 2022.
Last December, they also announced a partnership with cryptocurrency company ConsenSys to integrate PayPal into MetaMask, one of the most popular crypto wallets in the world.