Magic Labs Inc., the provider of a cryptocurrency “wallet-as-a-service” enterprise solution, today announced that it has raised $52 million in a strategic funding round led by PayPal Ventures.

Venture capital firms Cherubic, Synchrony, KX, Northzone and Volt Capital also participated in the investment, which brought the company’s total raised to over $80 million. The company said that it will use the new funds to create more features and significantly expand its reach in the European Union and Asia Pacific regions.

Magic provides a software development kit that allows businesses to add a crypto wallet into their applications for users to store their own cryptocurrency tokens as a managed service. Developers can plug in widgets that supply wallet access that provide onramps for the purchase of cryptocurrency and even nonfungible tokens. The users of the wallets maintain full control and custody of their tokens and their private keys.

Nonfungible tokens, or NFTs, are a type of crypto asset that represents the ownership of digital items such as artwork, video game items or virtual tickets that can be stored in crypto wallets. They are part of Web3, otherwise known as the distributed web, which is built on blockchain technology, supported by cryptocurrencies such as bitcoin and Ethereum. Cryptocurrencies and NFTs can be bought, sold and traded between users across blockchain networks and exchanged for money.

All wallets can be built on brand as white-label, supporting the current login flow and authentication of the business so it appears to be a part of the application. As a result, there’s no need for users to have advanced knowledge of crypto or Web3, which means novices and advanced users alike can use the wallets with ease.

“Since launching in 2018, we have witnessed a steady increase in Web3 use-cases among large enterprises across a wide variety of verticals,” said co-founder and Chief Executive Sean Li. “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 is working closely with Fortune 500 companies to bring their web3 use cases to everyday users.”

Brands that Magic has worked with include toy company Mattel Inc., department store Macy’s Inc., video game commerce company Xsolla Inc. and Web3 gaming company Immutable.

Since launch, Magic users have created more than 20 million unique wallets and its software development kit is used by more than 130,000 developers.

“Mass adoption of Web3 is a hot topic, and Magic is facilitating this with a safe and simple solution,” said Alan Du, partner at PayPal Ventures. “Magic’s wallet creation service allows companies to reach millions of users on their apps and onboard customers who are new to Web3.”

Image: Magic Labs