Consensys, the Ethereum infrastructure company behind the popular MetaMask wallet, said it has acquired Web3Auth, a provider of wallet infrastructure, in a move aimed at improving usability and developer accessibility across its platforms.

Financial terms of the deal were not disclosed.

The acquisition is designed to modernize MetaMask’s onboarding experience and tackle one of the most persistent challenges facing self-custodial crypto wallets: seed phrase management. According to Consensys, internal data indicates that 35% of MetaMask users fail to back up their seed phrases — a key vulnerability that can result in permanent loss of funds.

Web3Auth’s technology, already integrated across some 8,200 decentralized applications, offers login and recovery tools that mirror Web2-style user flows. With this integration, MetaMask users will have the option to access wallets without relying solely on seed phrases, aligning with a broader industry push toward "account abstraction" — the idea that crypto wallets should offer the same ease of use and safety nets found in traditional apps.

“This integration enhances MetaMask’s capabilities significantly, embodying our belief that the best Web3 wallets will seamlessly integrate infrastructure that supports a wide range of empowering features,” said Joseph Lubin, chief executive of Consensys and a co-founder of Ethereum. “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.”

The acquisition also targets developers building within the MetaMask ecosystem. By incorporating Web3Auth’s embedded software development kits (SDKs), Consensys said it aims to simplify the developer experience and offer more flexible tools for integrating blockchain into consumer-facing applications.

“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,” said Dan Finlay, the co-founder of MetaMask, in the press release. “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.”

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