San Francisco-based company Magic has successfully raised $52 million in a recent funding round led by PayPal Ventures, resulting in a valuation of the firm at nearly $500 million. What sets Magic apart is its offering of a white label version of its crypto wallet, specifically designed to cater to corporate clients who wish to provide wallets to customers unfamiliar with the intricacies of Web3.
Renowned companies like Mattel and Macy’s have already taken advantage of Magic’s wallet tools. Mattel utilized the platform for storing Hot Wheels NFT collectibles, while Macy’s incorporated Magic wallets into its digital Thanksgiving Day parade activities. The primary objective of Magic’s CEO, Sean Li, is to make Web3 tools accessible through familiar Web2-style interfaces, simplifying the onboarding process and ensuring that wallets remain noncustodial.
Magic’s business model revolves around providing software development kits (SDKs) to corporate clients, empowering them to customize wallets according to their specific needs. Li draws a comparison between Magic’s wallet-as-a-service (WaaS) approach and payment processors like Stripe or Twilio, which offer software solutions for businesses. Through collaborations with corporate partners, Magic has already facilitated the creation of over 20 million wallets, and the company is committed to driving mass adoption of Web3 by providing a secure and user-friendly solution. With the recent funding round, Magic has garnered support from Cherubic, Synchrony, KX, Northzone, and Volt Capital, bringing its total capital raised to over $80 million.
Coinbase, a prominent player in the cryptocurrency industry, also introduced its own WaaS initiative earlier this year, highlighting the growing interest in integrating crypto tools into business operations. Looking ahead, Magic envisions a future where every internet user has a digital wallet, aligning with their goal of promoting widespread adoption of Web3.