ConsenSys Acquires Web3Auth to Eliminate Seed Phrases for MetaMask's 40 Million Users

Coin WorldTuesday, Jun 3, 2025 2:29 pm ET
2min read

ConsenSys, a leading Ethereum infrastructure company, has acquired Web3Auth, a company specializing in passwordless authentication for Web3 applications. This acquisition is set to revolutionize the onboarding process for MetaMask, ConsenSys's widely-used cryptocurrency wallet, which boasts 40 million monthly active users. The integration of Web3Auth's technology aims to eliminate the need for seed phrases, which have long been a source of anxiety and risk for users. Seed phrases, a series of words that serve as a backup for wallet recovery, are often seen as cumbersome and prone to security vulnerabilities.

With the June 2 announcement, the anguish and risk of seed phrases for MetaMask's 40 million monthly users will come to an end — a new benchmark for wallet security and user experience potentially being set for the industry. For years, MetaMask has been the Ethereum and EVM chains' top self-custody wallet, but its 12- or 24-word seed phrase reliance has left users agitated. Web3Auth integration will "significantly enhance MetaMask user experience by solving one of the biggest risks in self-custody today: seed phrase management," ConsenSys CEO Joseph Lubin says. Internal data reveals that wallet users never store their seed phrase for 35% of the time, which leaves billions in assets at risk of losing access.

Web3Auth technology leverages

key-sharding, where a private key is split into multiple blocks of encrypted material that are then reconstituted with standard Web2 logins (Google or Apple) and device-based auth. The implication for this is that users will now be able to recover their wallets with social logins or multi-factor auth — no more scribbling down phrases and risking loss forever. The integration will be phased in, starting with voluntary passwordless sign-up and social login recovery for new and existing users. MetaMask will also introduce multi-factor authentication and device-based recovery, facilitating adoption by non-crypto natives and much harder for hackers or phishers to drain wallets.

For developers, the acquisition gives them embedded wallet SDKs and key management solutions to enable dApps to offer frictionless, secure onboarding without sacrificing decentralization. ConsenSys believes this will help onboard "the next billion users" to Web3. MetaMask's move is already sending shockwaves in the world of wallets. Rabby Wallet, famous for multi-chain and simplicity, just teased its own password-free login and smart account features. OKX Wallet, however, has far-reaching blockchain compatibility and tight exchange integration but is still seed phrase recovery-dependent for most users.

The news has sparked excitement across social media. Many see passwordless, MPC-backed wallets as the key to mainstream adoption. “Seed phrases are the biggest barrier for crypto newbies. This is the upgrade we’ve been waiting for,” wrote one MetaMask user on X. Others are eager to see if the new system can truly balance convenience with security, especially as phishing and wallet-draining attacks remain rampant. With ConsenSys and Web3Auth coming into alignment, the next chapter of MetaMask can one day make crypto wallets just as easy—and secure—as logging in to your favorite app.