San Francisco-based wallet-as-a-service (WaaS) provider Magic has recently announced its successful $52 million funding round led by PayPal Ventures. The round also included participation from venture firms such as Cherubic, Synchrony, KX, Northzone, and Volt Capital, bringing Magic’s total funds raised to over $80 million since its inception in 2020. Magic’s software is currently widely used in industries such as retail, music, fashion, and gaming. With this funding, the company aims to increase adoption by offering genuine digital ownership opportunities and expanding functionality, use cases, and integration within the European Union and Asia-Pacific region.
Magic’s software development kit (SDK) allows vendors to enable users to create wallets using existing email, social, SMS, or federated logins. Offering an all-in-one package for user onboarding, the software covers features such as authentication, fiat on-ramps, nonfungible token (NFT) minting, and NFT checkout. To date, Magic has generated over 20 million unique wallets and has over 130,000 developers using its SDK. The company claims that its proprietary technology can generate upwards of 2,000 wallets per second.
The platform’s compliance with various regulations, such as SOC2 Type 2, CCPA, GDPR, HIPAA, and ISO, is an added advantage. This compliance aspect might make it a trustworthy option for businesses looking to venture into the crypto space. However, it is essential to consider that while many businesses enjoy the lucrative funding rounds, not all have a successful track record of delivering on their promises over time.
Crypto and Web3 wallet providers have seen significant funding rounds in recent years. For instance, ConsenSys, the Web3 software developer behind self-custodial wallet MetaMask, raised $200 million at a $3.2 billion valuation in November 2021. Similarly, on March 30, 2023, crypto wallet provider Ledger raised $109 million at a valuation of $1.4 billion after experiencing a surge in demand for self-custody. Furthermore, the same month, multichain wallet BitKeep announced raising $30 million at a $300 million valuation.
These recent funding rounds highlight the increasing interest in the crypto and Web3 wallet space, which drives innovation, providing better services and use cases for businesses and individual users. However, with growing interest and investment in these services, it becomes even more essential for businesses and users to perform due diligence, assess risk, and ensure they partner with trustworthy providers.
Source: Cointelegraph
