A strategic fundraising round headed by PayPal Ventures raised $52 million for San Francisco-based wallet-as-a-service (WaaS) provider Magic, raising the company’s valuation to just under $500 million. Other participants of the fund round include Cherubic, Synchrony, KX, Northzone, and Volt Capital.
Co-founder and CEO of Magic, Sean Li, emphasized that the biggest companies have understood the potential of blockchain beyond cryptocurrencies and are using it to interact with customers and monetize the experience in new ways.
The executive also said that Magic is collaborating with Fortune 500 businesses to make their Web3 use cases accessible to regular customers.
The WaaS provider has churned more than 20 million unique wallets, and its SDK is used by over 130,000 developers. Magic’s scalability produces over 2,000 wallets per second (wps) versus the fastest alternatives at 80-100 wps.
In addition to Magic, a number of other Web3 businesses are placing their bets on the wallet-as-a-service business model, which enables customers to integrate cryptocurrency capabilities into their operations. Recently, Coinbase announced the launch of a WaaS service that will enable businesses to create personalized blockchain wallets for their clients.