Consensys Acquires Web3Auth to Enhance MetaMask Wallet Security

Consensys, the Ethereum infrastructure company behind the MetaMask wallet, has acquired Web3Auth, a provider of Web3 authentication tools used by nearly 50 million users, to enhance MetaMask's user experience and security. This acquisition aims to address the significant issue of seed phrase management, with data showing about 35% of MetaMask users fail to back up their seed phrases, risking permanent fund loss. By integrating Web3Auth’s technology, MetaMask users will be able to access wallets using familiar Web2-style login methods such as email, social, and device-based authentication, eliminating the need to manage seed phrases manually. This move aligns with the broader industry trend toward account abstraction, simplifying user onboarding while preserving security and digital sovereignty. Additionally, the acquisition benefits developers by embedding Web3Auth’s SDKs into MetaMask, facilitating smoother wallet integration and supporting non-EVM chains like Solana and Bitcoin for seamless cross-chain transactions. Consensys CEO Joseph Lubin highlighted that this integration is a natural evolution aiming to create customizable, secure, and user-friendly Web3 wallets that can support the next billion users entering the ecosystem.