Consensys Buys Web3Auth’s 50M-User Tech – Is MetaMask About to Change?

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Tanzeel Akhtar

Journalist

Tanzeel Akhtar

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Tanzeel Akhtar is a seasoned journalist who has been reporting on cryptocurrency and blockchain technology since 2015. Her work has appeared in leading publications including The Wall Street Journal,...

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June 2, 2025

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Consensys, the Ethereum-focused software firm behind MetaMask, is beefing up its Web3 arsenal with the acquisition of wallet infrastructure startup Web3Auth.

In a press release shared with CryptoNews, Consensys said the move comes amid growing concerns about the usability and risks of traditional seed phrase-based wallet systems.

With around 35% of users reportedly failing to back up their seed phrases, many face the looming threat of losing access to their funds.

By integrating Web3Auth’s authentication technology, Consensys said it seeks to drastically reduce this risk. MetaMask users will soon be able to create and recover wallets using methods they’re already familiar with, such as social logins and device-based authentication, bypassing the need to write down and securely store a 12- or 24-word seed phrase.

This latest shift reflects a broader trend in crypto toward improving the user experience. Web3Auth’s infrastructure brings multi-factor authentication into the equation, allowing frictionless onboarding while maintaining security.

For the average user, it means entering the Web3 space with fewer hurdles and more confidence—no more worrying about misplacing a piece of paper holding sensitive wallet information.

Developers Gain Access to Wallet Infrastructure

For application developers, the acquisition marks the start of a new era in simplified wallet integration. Web3Auth’s suite of SDKs will now be more tightly interwoven with MetaMask’s existing tools, including Infura and the Delegation Toolkit.

Developers can leverage these resources to build onboarding flows that feel closer to traditional apps while still offering the benefits of blockchain technology. It’s a major step forward for creating seamless, intuitive dapps where users can focus on utility rather than wallet logistics.

The implications are especially meaningful for emerging web3 sectors such as gaming, social platforms, and consumer-facing finance apps. With embedded wallets, dapp creators can now provide users with immediate wallet access at first interaction rather than sending them to external extensions or mobile apps.

The underlying cryptography and decentralization remain, but the user sees a familiar login screen, making blockchain invisible until it’s needed.

Global Reach and Strategic Expansion

Web3Auth, a Singapore-based startup that supports nearly 50 million users and over 8,000 applications, also brings a valuable international presence to Consensys, particularly in Asia. This region, known for its rapid adoption of new tech and active crypto communities, will be key to MetaMask’s global expansion plans.

The acquisition allows MetaMask to scale its footprint in high-growth markets while continuing to evolve its product to suit regional user behaviors and preferences.

This latest deal continues a trend of strategic acquisitions by Consensys. In just the past two years, the company has acquired MyCrypto, HAL, SMG, and Wallet Guard. Each addition has deepened MetaMask’s capabilities—whether in user interface, transaction automation, or now, embedded authentication.

Sharplink Deal, Lubin Joins Board as Chairman

In May, SharpLink Gaming (Nasdaq: SBET) landed a $425 million private investment in a public equity deal, with blockchain leader Consensys Software Inc. leading the charge in a major move for the sports betting and iGaming company.

As part of the deal, Joseph Lubin, Founder and CEO of Consensys and Co-Founder of Ethereum, became Chairman of SharpLink’s Board of Directors upon closing.