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Magic Labs has so far raised more than $80 million and facilitated the creation of 20 million wallets with support from over 130k developers.
Magic Labs Inc, an upcoming crypto wallet-as-a-Service (WaaS) provider, has announced the completion of a strategic funding round with $52 million to enable Web3 mass adoption. The Web3 startup intends to channel the funds to further enhance the non-custodial wallet creation through its SDK. According to the startup, the strategic funding round was led by PayPal Ventures, with other notable investors including Cherubic, Synchrony, KX, Northzone, and Volt Capita.
Magic Labs and Its Funding
With the new round, Magic Labs has so far raised more than $80 million since it was established in 2018. As a result, Magic Labs has attracted more than 130k developers including reputable tech companies like Mattel, Macy’s, Xsolla, and Immutable, among many others.
According to Sean Li, Magic’s co-founder, and CEO, the startup is already working closely with several Fortune 500 companies to initiate their Web3 use cases. Moreover, the notion that blockchain and cryptocurrencies can be used to facilitate a seamless transfer of value across the world has attracted global brands.
“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.”
Magic Labs and the Market Outlook
Magic has set a difference in its service by obtaining several regulatory approvals including from 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.
The startup is, however, venturing into a highly competitive market that has been dominated by Ethereum-based MetaMask, Ledger, and Binance-backed Trust wallet. Notably, MetaMask recently raised about $200 million at a valuation of about $3.2 billion. Hardware Wallet Ledger also recently announced a strategic funding round that raised $109 million at a valuation of about $1.9 billion.
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
Nevertheless, Magic Labs is optimistic it will attract more Web3 developers and users over time as it offers more enhanced and simple interactive services. For instance, Magic offers more than 20 authentication methods including email, SMS, and social, among others. Additionally, Magic Labs crypto wallets use diversified on-ramps platforms including Credit, Debit, and Instant Bank ACH with PayPal at the top of the list.