Magic, a San Francisco-based wallet-as-a-service (WaaS) provider, has raised $52 million in a strategic funding round led by PayPal Ventures. The latest capital infusion brings the firm’s valuation to just under $500 million. Other participants of the fund round include Cherubic, Synchrony, KX, Northzone, and Volt Capital.
Expanding Functionality and Integration
The latest capital infusion will be deployed to expand Magic’s functionality and enable growing use cases. The focus will also be on making a deeper integration within the European Union (EU) and Asia-Pacific region (APAC). Magic’s co-founder and CEO, Sean Li, highlighted that 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. The exec further revealed that Magic is working with Fortune 500 companies to bring their Web3 use cases to daily users.
Commenting on the latest development, Alan Du, Partner at PayPal Ventures, stated, “Mass adoption of web3 is a hot topic, and Magic is facilitating this with a safe and simple solution. We’re proud to be investing in Magic and believe the company will help drive the growing number of web3 use-cases amongst global brands.” According to the stats, the WaaS provider has churned more than 20 million unique wallets, and its SDK is used by over 130,000 developers. Magic’s scalability produces over 2,000 wallets per second (wps) versus the fastest alternatives at 80-100 wps.
WaaS Model Gains Traction
Several other companies in the Web3 space are betting on the wallet-as-a-service model that enables users to plug crypto tools into their operations. Coinbase recently announced starting a WaaS service that will let companies customize blockchain wallets for their customers.
Magic’s latest funding round led by PayPal Ventures is a clear indication of the growing interest in the Web3 space. The focus on expanding functionality and integration within the EU and APAC regions is a smart move as the adoption of blockchain technology continues to grow globally. With the support of Fortune 500 companies, Magic is well-positioned to drive the growing number of Web3 use-cases amongst global brands. The success of Magic and other companies in the WaaS space highlights the increasing importance of blockchain technology and its potential to revolutionize the way businesses engage with their customers.