Consensys aims to boost MetaMask UX, speed up Bitcoin support with Web3Auth acquisition

Blockchain software developer Consensys has acquired wallet infrastructure provider Web3Auth in an undisclosed deal that aims to enhance MetaMask's user experience.The acquisition specifically seeks to address what Consensys describes as "one of the biggest risks" in self-custody: seed phrase management — citing data suggesting 35% of users do not back up their seed phrases, putting their funds at risk. MetaMask users will be able to create and recover wallets using Web3Auth's familiar web2 login methods like social and device-based authentication, removing the need to back up seed phrases manually and lowering the risk of lost funds, the firm said in a statement shared with The Block.Consensys also said the acquisition speeds up MetaMask’s support for non-EVM chains like Solana and Bitcoin, ultimately enabling seamless and gasless cross-chain transactions. MetaMask added support for Solana on its web-based browser extension last week and plans to offer full Bitcoin support in Q3.On the developer side, Consensys said the acquisition enables builders to embed wallet SDKs and key management tools for a smoother onboarding experience, "paving the way for the next billion users to enter web3.""Integrating Web3Auth's cutting-edge authentication technology aligns with our mission to make web3 universally accessible," Consensys co-founder and CEO Joseph Lubin said in the statement. "This integration enhances MetaMask's capabilities significantly, embodying our belief that the best web3 wallets will seamlessly integrate an infrastructure that supports a wide range of empowering features. These include frictionless onboarding, customizable interfaces, extensive ecosystem connectivity reminiscent of a mycelium network, configurable security for varying needs, and maximal protections in high-security contexts."Founded in 2019, Web3Auth claims to support nearly 50 million end users and power more than 8,200 apps across the web3 ecosystem. "This is a monumental step forward for the team at Web3Auth. We are proud to join forces with Consensys to bring our wallet infrastructure to millions of MetaMask users, simplifying access to web3 through seamless and secure authentication," Web3Auth CEO Zhen Yu Yong said. "We're excited for this next chapter, which unlocks powerful new capabilities for developers — including deeper integrations into MetaMask and the wider web3 ecosystem for their users."Beyond MetaMask, Consensys also offers node infrastructure service Infura and the Linea Layer 2 network as part of its product suite.Phased rolloutMetaMask's Web3Auth integration will roll out in phases, starting with a focus on developer tools and seamless embedded wallet adoption, Consensys said. The first phase includes integrating Infura's JSON RPC capabilities into Web3Auth's wallet solutions, connecting Web3Auth embedded wallets with the MetaMask Delegation Toolkit, and enabling two-way access between the MetaMask for Developers and Web3Auth dashboards. Full integration of all features is expected over the next few weeks, before the end of the summer, MetaMask co-founder Dan Finlay told The Block.Asked how user privacy and data security will be handled under the new authentication methods, Finlay said it "will remain consistent with our current privacy posture and the terms of our Privacy Notice," adding that more information will be shared when the MetaMask implementation is released.Consensys also touted the move as helping to expand MetaMask's global footprint, with Web3Auth's strong presence in Asia, and building on its previous acquisitions of Wallet Guard last year, Special Mechanisms Group and HAL in 2023, and MyCrypto in 2022."The future of using web3 is going to be full of embedded wallets that enable blockchain integrations to be nearly invisible, and minimize user interactions to the meaningful ones," Finlay said in the statement. "Web3Auth has developed a rich, cross-protocol capacity for enabling key backup from a variety of classically web2 backup solutions. Together, we think we can help build the best of both worlds: a decentralized web that is invisible as much as it can be, but can show up when a user is ready to tap into its power."Earlier this month, Finlay told The Block's Crypto Beat podcast that a MetaMask token is still a "maybe," and if ever launched, it would be advertised within the web3 wallet directly.Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2025 The Block. 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