ConsenSys to Beef up MetaMask Security With Latest Crypto Acquisition

On Feb. 1, ConsenSys announced that it had acquired MyCrypto, an open-source platform that allows users to manage Ethereum (ETH) accounts privately and securely.

The announcement added that MyCrypto will “combine efforts” with the firm’s leading crypto wallet, MetaMask, in order to further improve security and create a unified user experience across desktop, mobile, extension, and browser wallets.

MyCrypto was started in 2015 and has become one of the most stable and compatible Ethereum wallet platforms. The more popular MetaMask has been focused on general dapp (decentralized application) integration and has garnered more than 21 million users.

Security and Web3 Improvements

Engineers and MyCrypto and MetaMask have already been working on security improvements such as a phishing detection service for the popular wallet. Phishing is a cyber-attack in which a malicious actor poses as a trusted person or organization to trick potential victims into sharing sensitive information or sending them money. MetaMask users have been on the end of a rising tide of these types of attacks recently.

Dan Finlay, the co-founder of MetaMask, commented that MyCrypto often shipped cutting-edge Ethereum features ahead of other wallets, before adding:

“I think we’ll be able to provide a wallet experience that is much more able to help its users make the best decisions through this rapidly evolving Web3 wallet landscape,”

The MyCrypto team has a lot of experience building smart contracts which will enable a broad spectrum of new integrations for MetaMask. MyCrypto’s tiny team of 12 employees will be joining ConsenSys, the announcement added as the eventual goal is to merge the features and brands of both companies.

Evolving Partnerships

ConsenSys announced a partnership with credit card giant Visa in mid-January in anticipation of the launch of a number of central bank digital currencies (CBDCs) this year. The collaboration will allow Visa users to link their cards or digital wallets to CBDCs and use them wherever Visa is accepted.

There is a possibility, though it has yet to be confirmed, that these options may be integrated into MetaMask at some stage in the future.

Additionally, MetaMask now has some competition from a Solana-based crypto wallet called Phantom which secured a $109 million Series B funding round this week. The rival wallet has around 2 million users and adoption is growing rapidly despite a number of performance issues and network outages on the Solana blockchain in recent months.