Metamask requires hot wallet creation when using hardware wallet

Nobody has claimed this yet.

### What is this about?

If your goal is to use MetaMask exclusively with a hardware wallet (without any hot wallet), you are still forced to create or import a hot wallet during the MetaMask setup process. However, this hot wallet is never actually used when you connect your hardware wallet. This requirement is both unnecessary and risky, as it introduces potential security vulnerabilities and user confusion.

For example, if you accidentally send funds to this hot wallet and did not securely store its seed phrase (since you never intended to use it), you could permanently lose access to those funds. This is a significant design flaw from a UI/UX perspective, as it places user assets at risk.

By contrast, Rabby offers a more streamlined experience by not requiring users to set up a random hot wallet when they intend to use only a hardware wallet. Rabby’s approach could serve as a reference for improving MetaMask’s user flow in this regard.

While MetaMask allows you to hide this unwanted hot wallet after setup, it does not eliminate the fact that you’re still required to create it initially. This mandatory setup step is both unnecessary and introduces avoidable risks, especially for users who only wish to use hardware wallets.

I believe this is a critical UI/UX flaw that could compromise user funds, and I would strongly urge the team to consider removing this mandatory hot wallet setup step. It would be greatly appreciated if this could be addressed.

### Scenario

Using MetaMask with a hardware wallet without creating a random hot wallet → Currently not possible with MetaMask

### Design

Remove the mandatory requirement to create or import a hot wallet. Instead, offer users the option to connect a hardware wallet directly. Refer to Rabby’s implementation for an improved user experience.

### Technical Details

Implement a setup flow that allows users to skip hot wallet creation and directly connect a hardware wallet.

### Threat Modeling Framework

Mandatory hot wallet creation introduces an additional attack surface (e.g., accidental fund transfers to the hot wallet)

### Acceptance Criteria

Users can set up MetaMask with only a hardware wallet, without the need to create or import a hot wallet.

### Stakeholder review needed before the work gets merged

- [X] Engineering (needed in most cases)
- [X] Design
- [X] Product
- [ ] QA (automation tests are required to pass before merging PRs but not all changes are covered by automation tests - please review if QA is needed beyond automation tests)
- [X] Security
- [ ] Legal
- [ ] Marketing
- [ ] Management (please specify)
- [ ] Other (please specify)

### References

_No response_

Start by tracing MetaMask's setup flow and the hardware-wallet connection entry point to find where hot-wallet creation is enforced. Compare the current flow with the stated scenario and acceptance criterion. Done means users can connect only a hardware wallet, with the required engineering, design, product, and security review completed.

Written by the indexing model from the issue text.