Since its start in 2020, the company has raised $80 million for wallet development.
On May 31, San Francisco-based wallet-as-a-service company Magic announced that it had successfully raised $52 million in a strategic funding round led by PayPal Ventures. Venture capital companies Cherubic, Synchrony, KX, Northzone, and Volt Capital also participated in the funding round. This brought the total amount of money Magic has raised to over $80 million.
Magic’s software is used by Mattel, Macy’s, Xsolla, and Immutable, among other names in retail, music, fashion, and gaming. With the money, Magic wants more people to use it by giving them real digital ownership options. It also wants to add more features, improve use cases, and integrate it more deeply in the European Union and Asia-Pacific area.
By using Magic’s software development kit (SDK), vendors can let users create wallets using their current email, social, SMS, or federated logins. The software gives users an all-in-one package for signing up, which includes authentication, cash on-ramps, minting nonfungible tokens (NFTs), and checking out with NFTs.
The platform also says that it follows rules like the Systems and Organization Controls 2 Type II, the California Consumer Privacy Act, the European Union’s General Data Protection Regulation, the Health Insurance Portability and Accountability Act, and International Organization for Standards protocols. Magic was started in 2020. Since then, it has made over 20 million unique wallets and over 130,000 developers have used its SDK. The company says its technology can make up to 2,000 wallets every second.
In the past few years, crypto and Web3 wallet services have raised a lot of money. ConsenSys, the company behind the self-custodial wallet MetaMask, had raised $200 million at a valuation of $3.2 billion. Similarly, on March 30, 2023, Ledger, a company that makes crypto wallets, raised $109 million at $1.4 billion because self-custody was in high demand. BitKeep, a multichain wallet company, said in the same month that it had raised $30 million at a value of $300 million.