ConSensys has acquired the crypto wallet infrastructure provider Web3Auth, which it says will bolster the user experience for its popular crypto wallet offering MetaMask.
ConSensys said in a June 2 blog post that the acquisition, which it did not share further details on, “will greatly improve MetaMask user experience by addressing one of the biggest risks in self-custody today: seed phrase management.”
It claimed that 35% of crypto wallet users are at risk of losing their funds as they do not keep a backup of their seed phrase — a string of up to 24 words that allows full access and control of a wallet.
By integrating Web3Auth, ConSensys said MetaMask users can recover their wallets using traditional authentication methods like device-based authentication and social logins, which it hopes will remove a barrier to entry.
The integration will be gradually rolled out in phases to MetaMask, and the firm plans to implement multifactor user onboarding to enhance safety.
Earlier this year, MetaMask announced that it would roll out support for both the Bitcoin and Solana networks.
Web3Auth marks ConSensys’ latest acquisition
ConSensys’ latest acquisition is the latest in a long string of crypto firms it’s bought up to expand its offerings.
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In July 2024, the firm acquired security tool Wallet Guard to bolster MetaMask’s security by integrating Wallet Guard’s advanced security features into MetaMask
On Feb. 21, 2023, the firm acquired blockchain development tooling platform Hal to integrate the service with its Web3 API solution Infura, which helps developers get alerts and notifications at a protocol level.
In 2022, ConSensys bought Ethereum wallet provider MyCrypto with plans to merge it with MetaMask.
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