• Among the companies that Magic has collaborated with is the toy maker Mattel Inc., the department store Macy’s Inc., the video game commerce company Xsolla Inc., and the Web3 gaming company Immutable.
  • More than 130,000 developers have used Magic’s software development kit since its launch, and its users have created more than 20 million unique wallets.

A cryptocurrency “wallet-as-a-service” enterprise solution provider named Magic Labs Inc. disclosed that it had raised USD 52 million in a strategic funding round headed by PayPal Ventures.

The investment, which increased the amount raised by the business to over USD 80 million, was also made by venture capital firms Cherubic, Synchrony, KX, Northzone, and Volt Capital. The company announced it would use the additional funding to add more features and significantly broaden its reach in the Asia-Pacific and European Union regions.

Magic offers a software development kit that enables companies to integrate a cryptocurrency wallet into their applications so that users can manage their own cryptocurrency token storage. Widgets that provide wallet access and onramps for buying cryptocurrencies and even nonfungible tokens can be plugged in by developers. The private keys and the tokens are entirely in the users’ hands when using the wallets.

NFTs, also known as nonfungible tokens, are crypto assets symbolizing the ownership of digital goods like virtual tickets, video game items, or works of art that can be kept in cryptocurrency wallets. They are a component of Web3, also known as the distributed web, which is supported by cryptocurrencies like Bitcoin and Ethereum and is based on blockchain technology. Users on blockchain networks can buy, sell, trade, and convert cryptocurrencies and NFTs into cash.

All wallets can be created as white-label applications that support the company’s current login process and authentication to appear to be a component of the application. Because of this, users don’t need to be experts in cryptography or Web3, so both new and experienced users can easily use the wallets.

Sean Li, Co-founder and Chief Executive, said, “Since launching in 2018, we have witnessed a steady increase in Web3 use cases among large enterprises across a wide variety of verticals. Global brands have realized the potential of blockchain beyond crypto and are utilizing it to engage with their customers and monetize the experience in new ways. Magic is working closely with Fortune 500 companies to bring their web3 use cases to everyday users.”

Mattel Inc., a maker of toys; Macy’s Inc.; Xsolla Inc., a retailer of clothing; and Immutable, a maker of Web3 games, are just a few of the brands that Magic has worked with.

Since its debut, Magic users have created over 20 million distinct wallets, and over 130,000 developers have access to its software development kit.

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