Magic Labs
Magic Labs, Inc.
Magic Labs is a wallet-as-a-service provider that lets companies create non-custodial embedded wallets for their users via existing logins (email, social, SMS). Its SDK combines wallet creation, transaction signing and on-chain automation, with server-side (API Wallets using AWS Nitro TEE and key sharding) and embedded options. The company reports over 200,000 developers and more than 50 million wallets created, and has raised over $80M (a $52M strategic round led by PayPal Ventures).
Data & conditions
| Service type | Stablecoin infrastructure |
|---|---|
| Pricing model | Not disclosed |
| Custody model | non-custodial |
| Customer type | Developers, Fintech, Enterprise, Platforms |
| Fund custody | Self-custody (funds in your control) |
| Supported countries | US, EEA, APAC |
| Segment | B2B |
| MiCA / License status | Not disclosed |
Strengths
- Non-custodial wallets created instantly from familiar logins, with no user-side key management.
- Solid backing (over $80M, with PayPal Ventures) and large-scale adoption (50M+ wallets).
- Self-custody: funds stay in your wallet — the platform cannot touch them.
Weaknesses
- Developer infrastructure: not an end-consumer product.
- Reliance on Magic's infrastructure for key generation and recovery.
- No notable sovereignty drawback documented.
Verdict
Score 4.0/5, very strong profile. In its favour: non-custodial wallets created instantly from familiar logins, with no user-side key management. The trade-off to weigh: developer infrastructure: not an end-consumer product.
On the Sovereignty lens the score is 5.0/5 (outstanding): the strength is fund control (5.0/5).
Promp's editorial rating based on real fees and net annual cost. Promp reviews third-party products independently.
"Sovereignty" rating: score computed on privacy/anonymity (30%), fund control (20%), censorship resistance (20%), trustless/auditability (20%) and costs (10%). Same data, different weights.
FAQ
Can an individual use Magic Labs?
Not directly. Magic is a developer SDK: a user only encounters Magic as the login/wallet system embedded in a third party's app.
Does Magic custody user funds?
No. The generated wallets are non-custodial: keys stay under the user's control (with sharding and protected environments), not held by Magic as a custodian.
Sources
- Official service page Sviluppatori Data verified on Jul 17, 2026
- prnewswire.com Data verified on Jul 17, 2026