Consensys Acquires Web3Auth to Enhance MetaMask User Experience – Coincu

Consensys has acquired the wallet infrastructure provider Web3Auth, aligning with plans to boost MetaMask’s seed phrase management and simplify user experiences through Web2 logins, according to PANews on June 3. The acquisition is expected to extend MetaMask’s reach, particularly across Asian markets.

The integration of Web3Auth into Consensys marks a strategic shift toward broadening blockchain accessibility for users worldwide by reducing technical barriers. With over 500,000 existing end users, this move is also poised to bolster MetaMask’s adoption of non-EVM chains, enhancing interoperability within the crypto ecosystem.

Anticipated Impact on Blockchain and User Adoption

Consensys has moved to acquire Web3Auth, a provider of key management and embedded wallet infrastructure. Web3Auth’s team of 30 will join MetaMask, one of the most used non-custodial wallets. This acquisition is set to simplify user experiences with MetaMask, integrating Web2 authentication methods. The transaction details remain undisclosed, but the integration is expected to propel support for chains like Solana and Bitcoin, with Bitcoin functionality anticipated by Q3 2025.

Immediate implications include enhanced user accessibility and expanding MetaMask’s global layout, focusing on Asian markets. The change is geared toward attracting new users and reducing the risk of lost funds, as noted by Dan Finlay, MetaMask’s co-founder. He emphasized the acquisition’s role in onboarding users less familiar with self-custodial practices.

“This is definitely about getting more people in. It’s also about preventing people from falling out in devastating ways. This is an answer to the fact that some people are just not ready to learn what it means to back up a private key in a fully self-custodial way, and that’s all right.” — Dan Finlay, Co-Founder, MetaMask

Market Data and Future Insights

Did you know? Previous wallet integrations, such as those including Web2 logins, have helped reduce barriers for non-technical users, often increasing platform adoption without significantly affecting short-term price movements.

Per CoinMarketCap, Ethereum (ETH) stands at $2,614.27, with a market cap of $315.60 billion and a trading volume of $16.96 billion in the last 24 hours, reflecting a 3.09% rise. Ethereum dominates 9.5% of the market as of June 2, 2025.

Coincu’s research indicates this acquisition could lead to greater integration capabilities across various blockchains, increasing interoperability and potentially driving wider adoption. This step aligns with trends towards seamless user experiences and enhanced multi-chain support seen in the broader industry.