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Payments Giant PayPal Invests in New Crypto Wallet Software in Push for Web3 Adoption

PayPal, a well-known payments company, is making substantial inroads into the realm of digital assets. The business has announced a multimillion-dollar investment in Magic, a crypto wallet startup situated in San Francisco. This strategic decision is intended to capitalise on the increasing need for safe and user-friendly Web3 experiences.

According to a news statement, Magic secured an outstanding $52 million in a strategic investment round headed by PayPal Ventures. The wallet-as-a-service (WaaS) provider has created a secure and easy method to aid in the widespread adoption of Web3. Magic enables businesses to quickly build wallets for their consumers, allowing newbies to experience the world of digital assets.

Alan Du, a PayPal Ventures partner, expressed enthusiasm about Magic’s ability to accelerate the adoption of Web3 use cases across major corporations. He emphasised that Magic’s wallet creation service provides millions of users with a smooth onboarding experience, providing a secure and accessible introduction into the world of digital assets.

Additional investments in the strategic capital round were made by industry giants such as Cherubic, Synchrony, KX, Northzone, and Volt Capital. Magic has now raised a total of $80 million, supporting its development and expansion aspirations.

Magic, founded in 2018, provides non-custodial crypto wallet technology to businesses looking to give a safe Web3 experience to their consumers. The firm employs a one-of-a-kind software development kit (SDK), which enables customers to easily construct wallets utilising their current email, social media accounts, or SMS. Magic has already produced over 20 million unique wallets, indicating its broad popularity.

Among Magic’s notable customers are well-known businesses such as Mattel, Macy’s, Xsolla, and Immutable. The company’s dedication to delivering a simple and safe solution has earned them the confidence of organisations seeking to capitalise on the enormous potential of digital assets.

Following the successful investment round, Magic co-founder Sean Li explained the company’s growth goals. Magic intends to strengthen its presence in the European Union (EU) and the Asia-Pacific (APAC) area, therefore opening up new potential for development and innovation.

PayPal’s foray into the digital assets market has been seen in recent years. The corporation disclosed a considerable position of around $604 million in digital assets in Q4 2022 in a filing with the US Securities and Exchange Commission (SEC). Furthermore, PayPal’s collaboration with ConsenSys and integration with MetaMask have propelled the corporation to the forefront of the cryptocurrency market.

In a further demonstration of its dedication, PayPal-owned Venmo revealed plans to allow its massive user base to transfer crypto and manage digital assets on external wallets and exchanges. This action demonstrates PayPal’s commitment to providing its customers with frictionless access to digital assets.

PayPal Ventures’ investment in Magic demonstrates the company’s commitment to driving innovation in the digital assets market. PayPal hopes to reinvent the Web3 experience and unleash its full potential for customers globally by using Magic’s expertise and user-friendly solutions. The strategic collaboration of these industry giants has the potential to impact the future of finance and allow users to explore the world of digital assets with simplicity and confidence.

 

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.