Magic

Magic is a wallet-as-a-service platform that lets developers provision non-custodial wallets, handle user authentication, and execute onchain transactions through a single API. The company was founded in 2018 and is headquartered in San Francisco. It operates under the legal entity Magic Labs and has been running in production since April 2020, giving it more than seven years of infrastructure uptime that it cites as a core differentiator.

What Magic Does

Magic's core product is embedded wallet infrastructure. Rather than requiring users to install browser extensions, write down seed phrases, or understand private keys, Magic generates and manages wallets behind the scenes, surfacing them through familiar authentication flows: email one-time passwords, SMS, social logins, passkeys, or enterprise SSO. Developers integrate the platform through the magic-sdk package alongside chain-specific extensions, including @magic-ext/solana for Solana applications.

The platform divides its wallet products into two categories. Embedded wallets are user-facing, non-custodial wallets designed to make web3 onboarding feel indistinguishable from a standard web2 login. Server wallets are programmatic wallets managed by the application itself, intended for backend automation, treasury management, and agent-driven transactions. Both product lines share an underlying key management architecture built on AWS Nitro Trusted Execution Environments (TEE), which Magic markets under the name TKMS — its patent-pending TEE Key Management System.

Performance figures published by Magic place wallet creation and transaction signing latency at 50 to 100 milliseconds. The company reports that over 200,000 developers have integrated the SDK across more than 18,000 applications, with more than 53 million wallets provisioned to date.

Chain Coverage

Magic supports more than 30 blockchain networks. Ethereum and EVM-compatible chains form the base of its ecosystem, but the platform explicitly covers Solana and Bitcoin alongside these. For Solana specifically, developers install the base SDK plus the @magic-ext/solana extension, which adds Solana-native signing and transaction methods on top of Magic's authentication layer. The broader SDK ecosystem also supports mobile development through iOS, Android, and React Native libraries, as well as backend integrations via Python and Node.js.

Authentication Methods

Magic supports multiple passwordless authentication paths so developers can match their onboarding flow to their user base. Options include email OTP, SMS, social logins, passkeys, and Farcaster authentication. Developers can also connect Magic to existing auth providers — Auth0, Firebase, NextAuth, and others — so the wallet layer plugs into identity infrastructure they already manage rather than replacing it.

Notable Clients

The platform has attracted clients across consumer applications, enterprise brands, and web3-native protocols. Polymarket, the prediction markets platform, is one of Magic's most publicly cited customers: a case study published in November 2025 described how Polymarket used Magic's TEE-secured embedded wallets to scale through the 2024 US election surge, handling billions of dollars in onchain volume without infrastructure failures. Other named customers include Immutable, Decentraland, Mattel, Macy's, Xsolla, and Naver — the South Korean internet company — illustrating a customer base that spans blockchain-native gaming infrastructure and mainstream consumer brands.

Funding

Magic has raised over $83 million across multiple rounds. The Series A raised $27 million and was led by Northzone, with participation from Tiger Global, Placeholder VC, SV Angel, Digital Currency Group, CoinFund, and Cherubic Ventures, plus more than 80 angel investors including Naval Ravikant, Ryan Hoover, and Alexis Ohanian. A later strategic round raised an additional $52 million led by PayPal Ventures, joined by Cherubic, Synchrony, KX, Northzone, and Volt Capital. Magic stated that the PayPal Ventures-led round would fund expanded functionality, new web3 use cases, and geographic growth in the EU and APAC markets.

Security and Compliance Posture

Magic holds SOC 2 Type 2 and ISO 27001:2022 certifications and is GDPR and CCPA compliant. The AWS Nitro TEE architecture means private keys are processed inside hardware-isolated enclaves that neither Magic employees nor external parties can access, supporting the platform's non-custodial positioning.

In November 2025, Magic announced an integration with Newton Protocol, a policy layer designed to bring programmable compliance controls to the transaction level. The integration makes the Newton SDK available to Magic's developer network, enabling applications to enforce pre-transaction policies such as OFAC sanctions screening, KYC/AML checks, spending caps, and execution windows — including controls on AI agent activity. Newton Protocol's compliance rules are described as modular, composable, and updatable, with cryptographic attestations executed by a decentralized operator network secured through EigenLayer restaking. The initiative extends Magic's platform from wallet provisioning into the compliance layer of onchain transactions.

Developer Experience

Magic markets integration speed as a key attribute, stating that developers can connect to the API in under ten minutes. The SDK ships with a customizable whitelabel UI widget that can be styled to match a brand's visual identity, removing the need for developers to build their own wallet UI components. Key management defaults to Magic-managed infrastructure, but the platform also supports self-hosted and hybrid configurations for teams that require direct key control.

Magic's documentation covers wallet types, chain-specific setup guides, authentication method configuration, and fiat on-ramp integration. The platform's SDK supports key export, giving users the option to take custody of their keys if they choose to leave the application.

Positioning

Magic occupies the embedded wallet infrastructure segment of the web3 developer tooling market, competing with platforms such as Privy, Dynamic, and Thirdweb. Its differentiation rests on longevity — operating since 2018 with an uninterrupted production track record — combined with enterprise security certifications and a developer base that crosses over from web2 consumer applications into blockchain-native protocols. The November 2025 Newton Protocol integration signals an expansion from pure wallet infrastructure into compliance and policy tooling, particularly for applications handling regulated assets or AI-driven transaction flows.