Crypto infrastructure giant ConsenSys has acquired Web3Auth, a key provider of wallet authentication infrastructure, in a move aimed at enhancing the usability and security of its flagship wallet, MetaMask.
Announced via a company blog post on June 2, the acquisition marks another step in ConsenSys’ broader strategy to eliminate pain points in self-custody, particularly around seed phrase management — a longstanding vulnerability in crypto wallet use.
Although the financial terms of the deal remain undisclosed, ConsenSys emphasized that the integration of Web3Auth’s authentication tech will allow MetaMask users to recover their wallets through familiar methods like social logins and device-based verification.
According to ConsenSys, an estimated 35% of crypto wallet users risk losing access to their funds due to a lack of seed phrase backups — a security lapse the firm hopes to curb by replacing the sole reliance on 24-word recovery phrases with more user-friendly, multifactor onboarding options.
The rollout of Web3Auth’s features will be phased into MetaMask over time as part of a broader push to make the wallet more accessible to mainstream users.
This acquisition adds to a string of strategic purchases by ConsenSys aimed at strengthening the MetaMask ecosystem. In July 2024, it acquired Wallet Guard to embed advanced threat protection tools into the wallet. Earlier, in February 2023, it acquired blockchain developer tooling platform Hal to enhance Infura’s Web3 API with real-time protocol alerts. In 2022, ConsenSys merged with MyCrypto, an Ethereum wallet provider, to streamline and improve its wallet offerings.
The latest move comes just months after MetaMask announced forthcoming support for Bitcoin and Solana networks, signaling its ambition to become a more inclusive and cross-chain wallet solution in the evolving Web3 landscape.
The update, expected to roll out soon, expands MetaMask’s functionality beyond Ethereum and EVM-compatible blockchains. This marks a significant shift for the wallet, which has primarily catered to Ethereum-based assets since its launch.
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