Payments giant PayPal is making further inroads into the digital assets space with a significant investment in San Francisco-based crypto wallet company Magic.
The strategic funding round, led by PayPal Ventures, saw Magic raise $52 million to enhance its wallet-as-a-service (WaaS) offering.
The investment underscores PayPal’s commitment to the mass adoption of Web3 and its belief in Magic’s ability to drive Web3 use-cases for global brands.
Magic’s Wallet Creation Service and Impressive Growth:
Magic, founded in 2018, provides non-custodial crypto wallet infrastructure, enabling companies to offer their customers a secure and user-friendly Web3 experience.
By leveraging its unique software development kit (SDK), Magic allows users to create wallets instantly using existing email, social media accounts, or SMS.
The company has already generated over 20 million unique wallets for its clients, including well-known brands like Mattel, Macy’s, Xsolla, and Immutable.
Expansion Plans and Funding Details:
With the recent funding, Magic aims to expand its presence in the European Union (EU) and Asia-Pacific (APAC) regions.
The funding round attracted investments from prominent firms such as Cherubic, Synchrony, KX, Northzone, and Volt Capital, bringing Magic’s total raised capital to $80 million.
This injection of funds will support the development of new functionalities and further value creation for Magic’s customers.
PayPal’s Growing Interest in Digital Assets:
PayPal’s investment in Magic aligns with its growing interest in digital assets and the evolving landscape of Web3. The company’s filing with the U.S. Securities and Exchange Commission (SEC) revealed holdings of approximately $604 million worth of digital assets in Q4 2022, including significant amounts of Bitcoin (BTC) and Ethereum (ETH).
Additionally, PayPal’s partnership with ConsenSys and integration with MetaMask highlight its commitment to expanding its presence in the crypto space.
Venmo’s Crypto Expansion: PayPal-owned Venmo has also taken steps to embrace cryptocurrencies. In April, Venmo announced plans to enable its 70 million users to transfer crypto to other Venmo users and external wallets and exchanges.
This move demonstrates PayPal’s broader strategy of integrating digital assets and crypto capabilities across its platforms.