PayPal Partners with Magic to Fuel Web3 Adoption Frenzy in Crypto Power Move

  • PayPal has invested millions in Magic, a crypto wallet provider, as part of its commitment to foster Web3 adoption.
  • Magic’s recent funding round led by PayPal Ventures raised $52 million, bringing the total funds raised to $80 million.
  • Magic offers a wallet-as-a-service infrastructure, enabling businesses to deliver secure and user-friendly Web3 experiences, with clients including Mattel, Macy’s, Xsolla, and Immutable.

In a significant move to advance its involvement in the world of digital assets, fintech giant PayPal is investing millions in Magic, a San Francisco-based crypto wallet provider. This strategic investment aligns with PayPal’s commitment to foster the transition to Web3, an internet ecosystem powered by blockchain technology.

Magic recently announced a successful strategic funding round, raising $52 million with PayPal Ventures leading the way. Alan Du, a partner at PayPal Ventures, emphasized the crucial role played by Magic in driving the mass adoption of Web3 through their secure and user-friendly solution. Cherubic, Synchrony, KX, Northzone, and Volt Capital also participated in the funding round, bringing Magic’s total funds raised to an impressive $80 million.

Founded in 2018, Magic offers a wallet-as-a-service (WaaS) infrastructure that empowers businesses to deliver a secure and seamless Web3 experience to their customers. Through an innovative software development kit (SDK), Magic enables customers to generate wallets instantly using their existing email, social media accounts, or SMS. To date, Magic has created over 20 million unique wallets.

Magic’s clientele includes globally recognized brands such as Mattel, Macy’s, Xsolla, and Immutable. Sean Li, the co-founder of Magic, highlighted that the recent funding will accelerate the company’s expansion into the European Union and the Asia-Pacific region.

A filing with the U.S. Securities and Exchange Commission reveals that PayPal held approximately $604 million in digital assets by the end of 2022, underscoring its growing involvement in the crypto space. In December, PayPal announced a partnership with ConsenSys to integrate PayPal into MetaMask, a leading global crypto wallet. Furthermore, PayPal-owned Venmo unveiled plans in April to allow its over 70 million users to transfer crypto to other users and move digital assets to external wallets and exchanges.

This strategic collaboration between PayPal and Magic reinforces their shared vision of driving Web3 adoption and highlights PayPal’s continued efforts to expand its presence in the crypto world.

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