- Magic Labs provides near-instant non-custodial wallet creation through an easy-to-use SDK vendor’s code.
- Magic Labs takes pride in the creation of over 20 million wallets in its journey to onboard a billion Web3 users globally.
The use of digital assets to streamline financial markets around the world has pushed Web2 institutions like PayPal Holdings to significantly invest in blockchain technology. Moreover, the trillion-dollar crypto industry has demonstrated huge potential to overthrow siloed banking infrastructure. In the latest PayPay and Web3 development, the company’s investment arm PayPay Ventures led a $52 million strategic funding round for Magic Labs, a leading wallet-as-a-service (WaaS) provider.
According to the announcement, PayPal joined forces with other venture capitals including Cherubic, Synchrony, KX, Northzone, and Volt Capital to facilitate the funding round. As a result, Magic Labs, which has facilitated more than 20 million wallet creations from a developer base of over 130k, can now compete with the likes of MetaMask, Trust Wallet, and Ledger hardware wallet in the same category.
Following the investment round, Magic Labs has so far raised a total of $80 million from different investors to develop infrastructure for mass Web3 adoption.
“Mass adoption of web3 is a hot topic, and Magic is facilitating this with a safe and simple solution,”
said Alan Du, Partner at PayPal Ventures.
“Magic’s wallet creation service allows companies to reach millions of users on their apps and onboard customers who are new to web3. 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.”
The Magic protocol is already regulated by different agencies to ensure the safe adoption of digital assets. Reportedly, Magic Labs has been regulated by the California Consumer Privacy Act, the Systems and Organization Controls 2 Type II, the European Union’s General Data Protection Regulation, the International Organization for Standards protocols, and the Health Insurance Portability and Accountability Act.
Bigger Picture of PayPay Holdings’ Investment in Magic Labs
The American payment giant has already invested in infrastructure for the seamless adoption of the crypto market. Notably, PayPal offers its users a chance to purchase Bitcoin, Ethereum, and Bitcoin Cash among other top trades digital assets. The strategic investment by PayPal Ventures in a wallet-as-a-service provider is a clear indication that the payment giant has recorded significant demand for digital assets in the past compared to the fiat currencies. Sean Li, Magic’s co-founder and CEO said
“…. 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,”
Notably, Magic Labs provides near-instant non-custodial wallet creation through an easy-to-use SDK vendor’s code. By providing users with the ability to secure their wallets using proven authentication methods including email and SMS, Magic Labs anticipates onboarding a billion Web3 users.
We’re thrilled to announce our latest funding of $52M backed by @PayPal @cherubicvc @synchrony @northzoneVC @VoltCapital @KX. Magic is solving web3 onboarding and our mission is to give a wallet to every internet user.
👇 Read morehttps://t.co/9tdZsH3lxH
— Magic (@magic_labs) May 31, 2023
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