Cryptocurrency

PayPal and Magic fixing the Crypto World One Wallet at a Time

  • Reading time: 2 min
PayPal and Magic, PayPal, Magic, PayPal Ventures, Cryptocurrency, Web3

The crypto world is recovering following its most awful year, 2022. And the collaboration between PayPal and Magic is set to accelerate the process,

  • At the end of May 2023, Magic closed its strategic founding round with a capital of $80 million and PayPal Ventures at its lead.
  • This move will ease the masses into Web3 adoption.

After its huge success during the COVID-19 pandemic, cryptocurrency peaked in 2021 with bitcoin trading at around $68,000. And then, card by card, the house fell apart. 2022 was an awful year for crypto, with a number of crypto exchanges and lenders either filing for bankruptcy or pausing customer withdrawals including FTX, Genesis, Three Arrows Capital, just to name a few. However, 2023 has been promising, with the crypto market gradually turning green and major digital currencies regaining momentum. And the PayPal and Magic collab could be the boost that this economy needs.

Go Big or Go Home

At the end of May 2023, the San Francisco-based crypto wallet company Magic announced the closure of its strategic funding round with $52 million. For the uninitiated, a strategic funding round is when a startup, in this case Magic, goes back to the market to raise more capital in exchange for equity in the business. PayPal Ventures, the global corporate venture arm of PayPal, lead this round and brought the total of the raised capital to an astounding $80 million, with the participation of:

  • Cherubic
  • Synchrony
  • KX
  • Northzone
  • Volt Capital

What’s so Special About Magic?

Magic, a technology startup founded in 2018, is revolutionizing the world of cryptocurrency with its unique non-custodial crypto wallet infrastructure. Its non-custodial nature allows users to control their own private keys. Not to mention, Magic’s wallet-as-a-service (WaaS) solution is designed to offer businesses a secure and user-friendly Web3 experience. So, by leveraging their proprietary software development kit (SDK), customers effortlessly create wallets using existing email, social media accounts, or SMS.

Recognizing the urgent need for Web3 adoption, PayPal Ventures has invested in Magic to support its mission. This move plays an important role going beyond the mass adoption of fintech. In actuality, it facilitates the transition to mass Web3 adoption. In fact, Magic has already facilitated the creation of more than 20 million unique wallets. The PayPal and Magic collab well-positions the Web3 startup to accelerate the adoption of blockchain technology. It simplifies the user experience and ensures the security of cryptocurrency transactions. This collaboration has the potential to revolutionize the way individuals and businesses interact with digital assets.

Final Thoughts

PayPal is recognized globally for its fintech powers. In our corner of the world, we’ve been hearing of the company well before we were ever introduced to the industry. The PayPal and Magic collab could revive the decentralized finance market after the less-than-ideal year it has witnessed by making it more mainstream and accessible for the average person. Tying such a big name to the WaaS provider will give it the needed recognition and credibility as it plays its part in fixing the crypto world one wallet at a time.

Inside Telecom provides you with an extensive list of content covering all aspects of the Tech industry. Keep an eye on our Cryptocurrency section to stay informed and updated with our daily articles.

Tags: