ConSensys Acquires Web3Auth to Enhance MetaMask User Experience by 35%

ConSensys, a leading Ethereum and web3 software technology company, has announced the acquisition of Web3Auth, a prominent provider of key management and embedded wallet infrastructure for web3 applications. This strategic acquisition is aimed at significantly enhancing the user experience of MetaMask, one of the most widely used crypto wallets. By integrating Web3Auth’s technology, 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 need for users to manually back up seed phrases and reducing the risk of lost funds.

According to ConSensys, 35% of crypto wallet users are at risk of losing their funds as they do not keep a backup of their seed phrase. The integration of Web3Auth’s capabilities will address this critical issue in self-custody, making the process of wallet recovery more user-friendly and secure. This move is expected to remove a significant barrier to entry for new users, as traditional authentication methods will make the onboarding process more intuitive.

The integration will be gradually rolled out in phases to MetaMask, with the firm planning to implement multifactor user onboarding to enhance safety. This acquisition follows ConSensys' previous strategic moves, including the acquisition of Wallet Guard in July 2024 to bolster MetaMask’s security, and the acquisition of blockchain development tooling platform Hal in February 2023 to integrate the service with its Web3 API solution Infura. In 2022, ConSensys bought Ethereum wallet provider MyCrypto with plans to merge it with MetaMask.

Web3Auth, founded in 2019, supports nearly 50 million end users and powers more than 8,200 dapps across the web3 ecosystem. By bringing Web3Auth’s capabilities into MetaMask, ConSensys aims to remove key pain points that have historically hindered adoption. These include frictionless onboarding, secure account recovery, unique embedded wallet synergies, multi-chain expansion, and account and chain abstraction. The acquisition accelerates MetaMask’s support for non-EVM chains, including Solana and Bitcoin, eventually enabling seamless cross-chain transactions.

The combination of Web3Auth’s multi-factor authentication and embedded wallet with MetaMask’s Delegation Toolkit and Framework will accelerate progress towards a seamless and gasless user experience across chains. Joseph Lubin, Founder & CEO of Consensys, expressed excitement about the acquisition, stating that it aligns with their mission to make web3 universally accessible. The integration enhances MetaMask's capabilities, embodying the belief that the best web3 wallets will seamlessly integrate an infrastructure that supports a wide range of empowering features.

Zhen Yu Yong, CEO of Web3Auth, expressed pride in joining forces with Consensys to bring their wallet infrastructure to millions of MetaMask users. He highlighted that this acquisition unlocks powerful new capabilities for developers, including deeper integrations into MetaMask and the wider web3 ecosystem. Dan Finlay, Co-founder of MetaMask, added that the future of using web3 will be full of embedded wallets that enable blockchain integrations to be nearly invisible, minimizing user interactions to the meaningful ones.

The integration of Web3Auth’s technology will proceed in phases, initially concentrating on integrating developer offerings and accelerating the adoption of seamless embedded wallets. Future milestones will include implementing multi-factor user onboarding for the MetaMask Extension and Mobile, increasing MetaMask user safety, and empowering the ecosystem of embedded wallets with MetaMask’s capabilities. Additionally, Web3Auth’s strong presence in Asia will further expand MetaMask’s global footprint, strengthening adoption in key regions where web3 innovation is thriving. Consensys will also work closely with ecosystem partners to implement Web3Auth’s embedded wallet solutions across the broader web3 landscape.