PayPal invests in new crypto wallet service
PayPal invests in new crypto wallet service

PayPal invests in new crypto wallet service

By Andrea Porcelli - 1 Jun 2023

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In a significant move toward the adoption of digital assets and the Web3 revolution, payments giant PayPal has announced a substantial investment in Magic, a San Francisco-based crypto wallet company. 

The strategic funding round, led by PayPal Ventures, raised $52 million for Magic, with additional investments from Cherubic, Synchrony, KX, Northzone and Volt Capital. 

This latest development highlights PayPal’s commitment to facilitating mass adoption of Web3 technology and demonstrates recognition of the growing importance of cryptocurrencies and blockchain-based solutions in the global financial landscape.

Magic: the new crypto wallet company that PayPal has set its sights on

Magic, founded in 2018 as a technology startup, offers a unique non-custodial crypto wallet infrastructure designed to provide businesses with an easy-to-use and secure Web3 experience. 

Leveraging a proprietary software development kit (SDK), Magic allows customers to effortlessly create wallets using their existing email, social media accounts, or SMS.

The simplicity and accessibility of Magic’s wallet-as-a-service (WaaS) solution have made it an attractive choice for companies looking to embrace the cryptocurrency world. 

Magic’s infrastructure allows companies to reach millions of users through their applications, enabling seamless onboarding for customers who are new to the Web3 ecosystem.

The decision by PayPal Ventures to invest in Magic stems from a recognition of the urgent need for Web3 adoption and the vital role Magic can play in this process.

Alan Du, partner at PayPal Ventures, stressed the importance of mass Web3 adoption, praising Magic for providing a secure and simple solution that facilitates this transition. 

Du believes Magic’s wallet creation service will enable global brands to effectively explore and embrace the growing number of Web3 use cases.

With PayPal’s support, Magic is well positioned to accelerate the adoption of blockchain technology by simplifying the user experience and ensuring the security of cryptocurrency transactions. 

This collaboration between PayPal, a leader in the payments industry, and Magic, a provider of cutting-edge cryptocurrency wallets, has the potential to revolutionize the way individuals and businesses interact with digital assets.

Magic’s future prospects

Magic’s success and growth are evident in its cornerstones. The company has already facilitated the creation of more than 20 million unique wallets, highlighting its significant impact on the Web3 landscape. 

By offering an easy-to-use and secure solution, Magic has earned the trust of both companies and individual users looking for a reliable platform to manage their crypto assets.

The strategic funding round led by PayPal Ventures, in which Magic raised a total of $52 million, brings the company’s total funding to $80 million.

This influx of capital will undoubtedly enable Magic to further improve its wallet infrastructure, expand its user base, and continue its mission to promote Web3 adoption.

Magic’s partnership with PayPal Ventures not only represents an important endorsement for the cryptocurrency company, but also reflects the broader trend of established financial institutions embracing blockchain technology and the potential of Web3. 

The investment by PayPal Ventures, a subsidiary of one of the world’s largest digital payment platforms, gives Magic a stamp of credibility and validates its approach to simplifying and securing the Web3 experience.

The collaboration between Magic and PayPal Ventures holds great promise for the future of digital asset adoption. 

As more companies and individuals recognize the benefits of blockchain technology, the demand for secure and easy-to-use cryptocurrency wallets will continue to grow. 

Magic’s unique SDK enables seamless integration with existing platforms, making it an attractive solution for companies looking to enter the cryptocurrency space without disrupting their existing user base.

Magic’s wallet solutions are in line with the ethos of decentralization

Magic’s emphasis on non-custodial wallet solutions aligns with the ethos of decentralization and user control that is at the heart of the Web3 movement. 

By providing individuals with control over their private keys and eliminating the need to entrust third parties with their assets, Magic enables users to take full ownership and responsibility for their digital wealth.

The investment by Cherubic, Synchrony, KX, Northzone and Volt Capital further underscores the growing recognition of Magic’s potential to revolutionize the cryptocurrency wallet landscape. 

With total funding of $80 million, Magic now has the resources it needs to expand its operations, improve its technology, and foster further innovation in the Web3 space. 

This funding will likely support the development of new features and functionality, as well as enable Magic to scale its operations to meet the growing demand for its services.

In addition to facilitating mass adoption of Web3, the partnership between Magic and PayPal Ventures could also pave the way for wider acceptance of cryptocurrencies in e-commerce and online transactions.

PayPal’s vast network of merchants and users presents a valuable opportunity for Magic to integrate its wallet infrastructure into existing payment processes, making it easier for individuals and businesses to transact using digital assets.

PayPal Ventures positions itself as a forward-looking player in the crypto and Web3 world

With the rise of Web3, traditional financial institutions are beginning to understand the transformative potential of blockchain technology. 

By investing in Magic, PayPal Ventures is not only diversifying its portfolio, but also positioning itself as a forward-looking player in the digital asset space. 

This move can help PayPal stay ahead of the curve and adapt to the changing financial landscape, in which cryptocurrencies and decentralized applications are set to play a more significant role.

In conclusion, PayPal’s investment in Magic represents a significant step toward mainstream acceptance of Web3 and the integration of cryptocurrencies into everyday transactions. 

Magic’s easy-to-use infrastructure for cryptocurrency wallets, combined with PayPal’s vast reach and influence, sets the stage for a new era of digital asset adoption. 

As more companies and individuals recognize the potential of blockchain technology, partnerships like the one between Magic and PayPal Ventures will foster innovation, foster trust, and accelerate the transition to a more decentralized financial ecosystem.

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