Consensys, the Ethereum-centric software company known for its MetaMask wallet, is enhancing its capabilities in the Web3 arena by acquiring the wallet infrastructure startup Web3Auth.
According to a press release issued to Finance Newso, this acquisition is timely, as there are increasing worries surrounding the safety and user-friendliness of traditional seed phrase wallet systems.
Reports indicate that approximately 35% of users fail to properly back up their seed phrases, leaving them at risk of losing access to their digital assets.
Through the integration of Web3Auth’s authentication technology, Consensys aims to significantly mitigate this issue. Users of MetaMask will soon have the ability to create and recover their wallets through familiar methods such as social logins and device authentication, eliminating the need to write down and securely store a complex seed phrase.
This strategic shift signals a larger movement within the cryptocurrency space aimed at enhancing user experience. The incorporation of Web3Auth’s infrastructure introduces multi-factor authentication, enabling a more seamless onboarding process while ensuring security.
For average users, this development means entering the Web3 realm with fewer obstacles and increased confidence, alleviating the concern of misplacing important wallet information.
Developers Gain Access to Wallet Infrastructure
This acquisition also opens new avenues for application developers looking to simplify wallet integration. The suite of SDKs provided by Web3Auth will now integrate more closely with existing MetaMask tools like Infura and the Delegation Toolkit.
Developers can utilize these resources to create onboarding processes that resemble traditional applications while still harnessing the advantages of blockchain technology. This is a significant advancement in crafting intuitive decentralized applications (dapps) that prioritize functionality over wallet management.
This progress holds particular significance in emerging sectors of Web3, including gaming, social platforms, and consumer finance. By embedding wallets, dapp developers can now grant users immediate access at their first interaction, eliminating the need to redirect them to external wallets or mobile apps.
While the underlying cryptography and decentralization are preserved, users will encounter familiar login screens, making the blockchain experience more unobtrusive until necessary.
Global Reach and Strategic Expansion
Web3Auth operates from Singapore and boasts nearly 50 million users across over 8,000 applications, adding significant international reach to Consensys, especially in Asia. This region is known for its swift adoption of new technologies and vibrant crypto communities, which aligns with MetaMask’s ambitions for global market expansion.
The acquisition empowers MetaMask to broaden its presence in rapidly expanding markets while continually adapting its product to meet regional user needs and preferences.
This deal follows a pattern of strategic acquisitions by Consensys. Over the past two years, the company has welcomed MyCrypto, HAL, SMG, and Wallet Guard into its fold. Each strategic move has enriched MetaMask’s offerings, enhancing aspects like user interface, transaction automation, and now, embedded authentication.
Sharplink Deal, Lubin Joins Board as Chairman
In a notable development earlier this year, SharpLink Gaming (Nasdaq: SBET) secured a $425 million private investment in public equity deal, with blockchain innovator Consensys Software Inc. playing a pivotal role in this venture for the sports betting and iGaming landscape.
SharpLink Gaming has landed a $425 million private investment in public equity deal, with blockchain leader @Consensys #Gaming #Ethereum https://t.co/xdHEYt7rB8
— Finance Newso.com (@Finance Newso) May 27, 2025
As part of this agreement, Joseph Lubin, the Founder and CEO of Consensys and a Co-Founder of Ethereum, was appointed Chairman of the Board for SharpLink upon the deal’s completion.
