ConsenSys to Enhance MetaMask and Invest in Ethereum Treasury

MetaMask developer ConsenSys has acquired Web3Auth, an infrastructure provider. The financial details of the deal remain undisclosed.

Founded in 2019, the platform serves approximately 50 million end users and supports over 8,200 applications within the Web3 ecosystem.

The primary aim is to enhance the wallet’s user experience. ConsenSys also seeks to address the management of seed phrases, which it describes as “one of the main risks” of self-custody.

According to the company, 35% of users do not back up their seed phrases, putting their funds at risk. The integration of Web3Auth will enable wallet creation and recovery using familiar Web2 login methods, such as social media or device authentication.

The deal will also expedite the integration of non-EVM compatible networks into MetaMask, particularly Solana and Bitcoin. In the future, this will allow seamless cross-chain transfers without gas fees. Full support for the first cryptocurrency network is expected in the third quarter.

Developers will gain tools for embedding SDK wallets and key management, simplifying the onboarding process for new users. ConsenSys anticipates this will help “attract the next billion users to Web3.”

The integration will proceed in stages, starting with developer tools. Full implementation of all features is expected within a few weeks, by the end of summer.

SharpLink Assistance

Simultaneously, ConsenSys led a $425 million private placement for SharpLink Gaming.

The latter is an American sports betting platform.

SharpLink plans to issue $1 billion in shares to create the largest Ethereum treasury on the market. This will allow it to join other publicly traded companies employing a similar strategy.

The funding will enable SharpLink to acquire Ether as a primary reserve asset. The company also plans to engage in staking and DeFi.

To manage its Ethereum strategy, SharpLink has entered into agreements with ParaFi and Galaxy Asset Management.

Upon completion of the deal, ConsenSys CEO Joseph Lubin will assume the role of chairman of SharpLink’s board of directors.

The funding round also saw participation from ParaFi Capital, Electric Capital, Pantera Capital, Arrington Capital, Galaxy Digital, Ondo, White Star Capital, GSR, Hivemind Capital, Hypersphere, Primitive Ventures, and Republic Digital. Additionally, SharpLink’s CFO Robert DeLucia contributed to the funding.

In November 2024, ConsenSys established the non-profit Linea Association to develop and enhance the decentralisation of L2 based on ZK-Rollups for Ethereum.