Web3 startup Magic raises $52m in round led by PayPal Ventures

The venture arm of payments giant PayPalled the $52m funding round for Magic. The company has developed software that helps corporations engage with customers in Web3-space.

\n\n

Magic acts as a provider of a multi-platform wallet-as-a-service (WaaS).

\n\n

The startup’s solution aims to simplify storing digital assets in a non-custodial wallet. Access to the latter can be configured via email address, SMS or social-media accounts.

\n\n

The standout feature of the offering is compliance with WaaS requirements SOC 2 Type 2, CCPA, GDPR, HIPAA and ISO.

\n\n

Companies can use the service to organise loyalty and membership programmes, issue NFTs, reward employees and sell tickets.

\n\n

Among Magic’s clients are Macy’s department store chain and toy maker Mattel.

\n\n

“We are seeing a steady rise in the number of Web3 use cases by large companies across a range of verticals. Global brands have recognised the potential of blockchain beyond cryptocurrencies and are using it to engage with customers and monetise the experience in new ways,” said Sean Lee, co-founder and CEO of Magic.

\n\n

According to the company, the service has generated more than 20 million unique wallets, and its SDK is used by more than 130,000 developers.

\n\n

In the strategic investment round, Magic also counted Cherubic, Synchrony, KX, Northzone and Volt Capital among its backers.

\n\n

The amount raised by the startup exceeded $80 million.

\n\n

PayPalwas named a winner of the Fortune Crypto 40 ranking among TradFi.

\n\n

Earlier, Coinbaseintroduced a similar WaaS service.