Consensys, an Ethereum and web3 software technology company, today announced the acquisition of Web3Auth, a provider of key management and embedded wallet infrastructure for web3 applications.
This acquisition will improve MetaMask user experience by “addressing one of the biggest risks in self-custody today: seed phrase management.”
It will also strengthen MetaMask’s position “as a go-to solution for embedded wallet infrastructure for developers.”
Recent data shows that 35% of users do “not back up their seed phrases, putting them at risk of fund loss.”
By integrating Web3Auth’s capabilities, MetaMask users will be able to create and recover wallets using “familiar web2 authentication methods, such as social logins and device-based authentication, eliminating the requirement for users to manually back up seed phrases, reducing the likelihood of lost funds.”
For developers, the acquisition unlocks access “to embedded wallet SDKs and key management infrastructure that simplify wallet management.”
With deeper integrations into MetaMask (incl. Infura and Delegation Toolkit) and the broader web3 ecosystem “on the horizon, developers can now offer smoother onboarding experiences—paving the way for the next billion users to enter web3.”
Joseph Lubin, Founder & CEO of Consensys said:
“We are so excited to announce that we’ve been working with Web3Auth for some time to pioneer a next-generation approach to web3 wallet infrastructure. Integrating Web3Auth’s cutting-edge authentication technology aligns with our mission to make web3 universally accessible. 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. This acquisition underscores our commitment to enhancing user experience and security, paving the way for mainstream adoption.”
Founded in 2019 with the mission to make digital ownership and identity accessible to all, Web3Auth supports “nearly 50 million end users and powers more than 8,200 dapps across the web3 ecosystem.”
By bringing Web3Auth’s capabilities into MetaMask, Consensys aims to remove “key pain points” that have historically hindered adoption:
- Onboarding: Web3Auth’s multi-factor authentication will allow new users to set up wallets using familiar web2 authentication methods, eliminating the need for users to backup seed phrases themselves.
- Account Recovery: Users can recover their wallets using social logins and device-based authentication, reducing the risk of lost funds.
- Embedded Wallet Synergies: Web3Auth’s technology will provide developers with a powerful edge to onboard millions of new users with deeper integration with MetaMask (incl. Infura) and the broader web3 ecosystem.
- Multi-Chain Expansion: The acquisition accelerates MetaMask’s support for non-EVM chains in MetaMask developer offering, including Solana and Bitcoin, eventually enabling seamless cross-chain transactions.
- Account & Chain Abstraction: The combination of Web3Auth muti-factor and Embedded Wallet with MetaMask Delegation Toolkit & Framework will accelerate progress towards a seamless and gasless user experience across chains.
Zhen Yu Yong, CEO of Web3Auth said:
“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.”
They added:
“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. Together, we’re laying the foundation for a more unified web3 experience for both end users and developers. With Consensys, we’re better positioned than ever to deliver on the promise of onboarding the next billion users on-chain.”
Dan Finlay, Co-founder of MetaMask, added:
“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. 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. Combined with MetaMask’s Delegation Toolkit, we think we can provide the best of invisible embedded accounts with no confirmation messages, but with a seamless path to interconnect those applications to the user’s wallet, and in turn other applications.”
The integration of Web3Auth’s technology will proceed in phases, initially concentrating on “integrating their developer offerings and accelerating adoption of seamless embedded wallets.”