PayPal Ventures invests in web3 onboarding startup Magic

Companies • May 31, 2023, 1:12PM EDT

Quick Take

Magic raised $52 million in a round led by PayPal Ventures, with Cherubic, Synchrony, KX, Northzone and Volt Capital also participating.

PayPal Ventures has led a round of investment into Magic, a digital-wallet provider that helps companies migrate customers to web3.

Magic announced it raised $52 million in what it called a “strategic funding round." Cherubic, Synchrony, KX, Northzone and Volt Capital also participated, the company said, noting it had now raised a total of more than $80 million.

“We have witnessed a steady increase in web3 use-cases among large enterprises across a wide variety of verticals,” said Sean Li, Magic’s co-founder and CEO. “Global brands have realized the potential of blockchain beyond crypto and are utilizing it to engage with their customers and monetize the experience in new ways.”

Magic said it has worked with household name brands like Macy’s department store and toy maker Mattel.

The company's main focus is making it easy for consumers to store digital assets in a non-custodial wallet which can be setup with an email address or social media account.

About Author

RT Watson is a senior reporter at The Block who covers a wide array of topics including U.S.-based companies, blockchain gaming and NFTs. Formerly covered entertainment at The Wall Street Journal, where he wrote about Disney, Netflix, Warner Bros. and the creator economy while focusing primarily on technological disruption across media. Previous to that he covered corporate, economic and political news in Brazil while at Bloomberg. RT has interviewed a diverse cast of characters including CEOs, media moguls, top influencers, politicians, blue-collar workers, drug traffickers and convicted criminals. Holds a master's degree in Digital Sociology.