Blockchain firm Consensys acquired Web3Auth, a Web3 authentication platform, on June 3, 2025.

Web3Auth will remain an independent brand within Consensys.

Founded in 2019, Web3Auth supports nearly 50 million users and over 8,200 decentralized apps (dApps).

The acquisition aims to integrate its wallet features into Consensys products like MetaMask to enhance onboarding and security.

Upcoming updates will include easier onboarding via social logins, multi-factor authentication, and improved wallet integration with dApps.

Developers will get a unified dashboard with new tools, including Infura support and compatibility with chains like Solana and Bitcoin.

The company will maintain the Web3Auth brand identity and continue providing existing services.

🔗 Source: Web3Auth

🧠 Food for thought

1️⃣ The evolving M&A landscape in Web3 infrastructure reflects selective consolidation

Web3Auth’s acquisition by Consensys represents a strategic move in a highly selective acquisition landscape, where only 27 acquisitions worth $4 billion have occurred in the Web3 infrastructure space over a four-year period 1.

This transaction aligns with broader market trends where custody technology providers are particularly attractive acquisition targets due to their role in securing digital assets and facilitating transactions 1.

The deal highlights how established Web3 companies are prioritizing user experience improvements, with Consensys specifically citing “seamless onboarding” with social logins as a key motivation for acquiring Web3Auth’s technology 2.

Despite the challenging exit environment for Web3 infrastructure startups, Web3Auth has achieved significant traction, growing to nearly 50 million end users and powering over 8,200 dApps across the ecosystem 2.

This success stands out considering that building Web3 infrastructure typically requires significant financial and technical commitments, creating high barriers to entry and challenging economics for startups seeking exits 1.

2️⃣ Multi-party computation (MPC) emerges as the key security approach for mainstream wallet adoption