KEY FACTS: Consensys, a leading Ethereum infrastructure company, has acquired Web3Auth, a Singapore-based wallet infrastructure provider, to enhance the user experience and security of its MetaMask wallet, used by over 100 million people annually. The acquisition aims to simplify onboarding by integrating Web2-style authentication methods, such as social logins, to eliminate the complexities of seed phrase management, which 35% of MetaMask users fail to back up. The move will also expand MetaMask’s multi-chain support, including Solana and Bitcoin, and boost its presence in Asian markets, where Web3Auth serves over 500,000 users.

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Source: Consensys Blog

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Consensys Acquires Web3Auth to Revolutionize MetaMask’s User Experience and Security

Consensys, the leading Ethereum infrastructure company, announced on June 2, 2025, its acquisition of Web3Auth, a Singapore-based provider of wallet infrastructure. This strategic acquisition aims to enhance the user experience and security of MetaMask, the world’s most popular non-custodial cryptocurrency wallet, by addressing one of the most persistent challenges in self-custodial crypto wallets: seed phrase management. While the financial details of the deal remain undisclosed, the integration of Web3Auth’s innovative technology is expected to streamline onboarding, boost security, and expand MetaMask’s global reach, particularly in Asian markets.

With Web3Auth’s wallet infrastructure, MetaMask users will be able to create and recover wallets using familiar web2 authentication methods such as social logins and device-based authentication, eliminating the requirement for users to back up seed phrases themselves and reducing the risk of lost funds.
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MetaMask, with over 100 million annual users, has long been the go-to wallet for interacting with decentralized applications (dApps) and managing digital assets on the Ethereum blockchain and beyond. However, one of the biggest hurdles for new and existing users is managing seed phrases, which are those critical 12- or 24-word sequences that serve as the key to accessing and recovering a crypto wallet. According to internal data from Consensys, approximately 35% of MetaMask users fail to back up their seed phrases, leaving them vulnerable to permanent loss of funds if they lose access to their device or forget their credentials. This statistic highlights a significant barrier to entry for mainstream users who are accustomed to the seamless login experiences of Web2 applications such as social media platforms or email services.

Web3Auth’s technology offers a solution to this problem by introducing Web2-style authentication methods, such as social logins (e.g., Google or Twitter) and device-based authentication, to the Web3 space. The integration of Web3Auth’s infrastructure will help MetaMask users create and recover wallets without relying solely on seed phrases. This shift aligns with the broader industry trend toward “account abstraction,” which seeks to make crypto wallets as intuitive and secure as traditional applications.

Joseph Lubin, CEO of Consensys and co-founder of Ethereum, emphasized that the integration enhances MetaMask’s capabilities significantly and that the best Web3 wallets will seamlessly integrate infrastructure that supports a wide range of empowering features. These features include frictionless onboarding, customizable interfaces, and robust security options tailored to varying user needs.

The acquisition of Web3Auth is not just about improving security, it is about lowering the technical barriers that have long hindered the widespread adoption of Web3 technologies. The traditional MetaMask onboarding process requires users to understand complex concepts like seed phrases, gas fees, and network selection, which can be daunting for newcomers. Web3Auth’s technology, already integrated into over 8,200 decentralized applications and serving nearly 50 million end users, allows for simplified account creation through familiar methods like email or social media accounts. This approach mirrors the user-friendly login experiences of platforms like Coinbase, which have successfully attracted non-technical users by reducing complexity.

Dan Finlay, co-founder of MetaMask, emphasized the transformative potential of this integration. He said that reducing the learning curve and mitigating the risks associated with seed phrase mismanagement is an effort by Consensys to attract a broader audience, including those who may have been intimidated by the technical demands of self-custodial wallets. In his words:

“The future of using Web3 is going to be full of embedded wallets that enable blockchain integrations to be nearly invisible, and minimize user interactions to the meaningful ones. Together, we think we can help build the best of both worlds: a decentralized web that is invisible as much as it can be, but can show up when a user is ready to tap into its power.”

Beyond improving user experience, the acquisition accelerates MetaMask’s roadmap for supporting non-Ethereum Virtual Machine (non-EVM) blockchains, such as Solana and Bitcoin. MetaMask recently introduced Solana support through its web-based browser extension, and full Bitcoin functionality is slated for release in Q3 2025. Web3Auth’s infrastructure will enable seamless and gasless cross-chain transactions, making MetaMask a more versatile and competitive wallet in the rapidly evolving multi-chain ecosystem. This move aligns with the growing demand for wallets that can interact with diverse blockchain networks, particularly in regions like Asia, where crypto adoption is surging.

The acquisition also positions MetaMask to expand its footprint in Asian markets, where Web3Auth already has a strong presence with over 500,000 users. Integrating this user base into MetaMask will help Consensys to significantly broaden its adoption and influence in one of the world’s fastest-growing crypto markets.

The benefits of the Web3Auth acquisition extend beyond end users to developers building within the MetaMask ecosystem. Web3Auth’s embedded software development kits (SDKs) will simplify the process of integrating blockchain functionality into consumer-facing applications. These tools will enable developers to create smoother onboarding experiences and embed wallet capabilities that are nearly invisible to users, aligning with the vision of a decentralized web that prioritizes meaningful interactions. The first phase of integration will focus on enhancing developer offerings, including connecting Web3Auth’s embedded wallets with MetaMask’s Delegation Toolkit and integrating Infura’s JSON RPC capabilities into Web3Auth’s solutions. Full integration of all features is expected to be completed by the end of summer 2025, according to Finlay.

The acquisition of Web3Auth is the latest in a series of strategic moves by Consensys to boost MetaMask’s capabilities and solidify its position as the leading Web3 wallet. In July 2024, Consensys acquired Wallet Guard to enhance MetaMask’s security features, integrating advanced scam and drainer detection tools to protect users from the growing threat of hacks and scams. Previous acquisitions, such as MyCrypto in 2022 and Special Mechanisms Group (SMG) in 2023, have similarly focused on improving user experience, security, and developer accessibility. These efforts reflect Consensys’ broader mission to make Web3 universally accessible while maintaining the principles of decentralization and user sovereignty.

Additional details will be shared upon the release of the implementation, ensuring transparency with users. Web3Auth’s use of multi-party computation (MPC) technology, which distributes key management across multiple locations (e.g., a user’s device, a social login provider, or Web3Auth itself), offers an alternative to single-point-of-failure seed phrases. This approach allows users to recover their wallets using familiar methods like two-factor authentication or device recovery, enhancing both security and accessibility.

Consensys' move is another feat in the crypto industry trend toward user-friendly wallet solutions. Platforms like Coinbase have demonstrated that reducing technical barriers can significantly boost adoption, and Consensys is positioning MetaMask to follow suit. On Hive blockchain, InLeo developers are also creating seamless options to make web3 onboarding easier for web2 users. Addressing seed phrase management, expanding multi-chain support, and targeting high-growth markets like Asia, Consensys is laying the groundwork for MetaMask to remain a dominant player in the Web3 space.

As Consensys rolls out Web3Auth’s technology in phases, the focus will initially be on enhancing developer tools and embedded wallet adoption. The integration is expected to create a smoother onboarding process for users and developers alike, paving the way for the next billion users to enter Web3. With its commitment to user experience, security, and global expansion, Consensys will reshape the future of decentralized finance and applications.

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Information Sources:

• Consensys Blog
• Cointelegraph

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