The historical term for these is "dongle" - a widget which either plugs directly in to the computer (they've been around since the 80s (maybe even the 70s)) or which generates new passcodes every minute or two in a way which some central system can predict (i've used these in corporate environments). IIRC the modern ones are called "passkeys".
My point is only: this is not a new concept and, to date, every attempt to mass-deploy them has failed because (i opine) of (A) the friction involved for users and (B) many people don't want to trust their authentication to a block box owned by a third party.