PayPal, the online payments behemoth, is making its first major investment in the cryptocurrency and digital asset industry by purchasing a significant stake in the San Francisco-based crypto wallet firm Magic.
In a strategic fundraising round headed by PayPal Ventures, Magic, a wallet-as-a-service (WaaS) provider, reportedly received $52 million.
Partner at PayPal Ventures Alan Du says, “Magic is providing a secure and user-friendly alternative for the widespread adoption of Web3, which is now a matter of much discussion. With Magic’s wallet generation service, businesses can have access to millions of mobile app users and easily onboard new Web3 clients. We’re excited to back Magic because we think it will be a key player in the expansion of Web3 applications among major businesses across the world.”
According to the announcement, Magic received a total of $80 million from the capital round, which included investments from Cherubic, Synchrony, KX, Northzone, and Volt Capital.
In order to help businesses offer their clients a safe and simple Web3 experience, the 2018 company Magic has developed a non-custodial crypto wallet architecture.
Customers may immediately start utilising their email, social media accounts, or SMS to send and receive money using the company’s own software development kit (SDK). According to the announcement, more than 20 million separate wallets have been generated by Magic thus far.
According to Sean Li, co-founder of Magic, the business would use the funds to increase its visibility in the European Union (EU) and Asia-Pacific (APAC).
Li asserts, “Using the fresh capital, the company plans to “continue delivering more value to our customers by extending functionality and enabling growing use cases.”
According to a recent SEC filing by PayPal, the corporation possessed around $604 million in digital assets in the fourth quarter of 2022.
In April, PayPal’s Venmo said that it will soon enable its 70 million customers to send and receive cryptocurrency and move digital assets to other wallets and exchanges.