Safe launches Safe{RecoveryHub}, joining forces with Sygnum Bank and Coincover to Set New Standard for Crypto Recovery
Available to all Safe{Wallet} users, Safe{RecoveryHub} enables wallet holders to choose from various options for recovering access to their holdings, from fully self-custodial to custodial recovery, including social recovery.
Safe, the leading smart wallet infrastructure provider, is collaborating with Sygnum, a global digital asset banking group, and Coincover, a UK-regulated recovery service provider, to launch Safe{RecoveryHub}, offering a curated suite of crypto recovery options. Built with Safe’s battle-tested smart account infrastructure at its core, this marketplace of solutions lays the technical groundwork for a tailored approach to smart account recovery.
It has been estimated that over 900K ETH (worth approximately $1.92 billion) is inaccessible to users, with significant losses due to forgotten keys. Despite self-custody being one of the original value propositions of web3, complex key management remains a significant barrier for users, with few recovery solutions available. Safe{RecoveryHub} offers a comprehensive range of recovery solutions for all digital asset holders, from large institutions to individual users. Users can recover access to their accounts through designated recoverers, which can be personal backup devices, family members, friends, and collaborators, in a process known as “social recovery.” In addition, trusted third-party service providers like Sygnum, a Swiss-regulated bank with over USD 4 billion assets held in institutional-grade custody, and CoinCover can also be designated as recoverers to facilitate recovery.
Importantly, even with a custodial recovery setup, Recoverers are given control by the user only in case of a recovery event and are trusted to recover access for users. In all other times, users retain full control through veto rights to cancel any recovery attempt. Users can also setup multiple recoverers and apply a threshold to further bolster security. This aligns with Vitalik Buterin's advocacy for a holistic approach to recovery, where a flexible set of at least three recoverers or "guardians" can be designated, ranging from personal connections to institutions.
“With this solution, rather than face a binary choice between a self-custody or custodial experience, users are empowered to optimise a key recovery solution to fit their personal risk preferences. This user-driven module, where account holders dictate the terms of asset management themselves, is unprecedented both in the crypto industry and traditional finance, marking a new milestone in the path towards financial sovereignty.”
Lukas Schor, Co-Founder, Safe
“As the market for self-custody expands and new use cases emerge, there is a growing need for reliable institutional recovery solutions. For individuals holding valuable digital assets, complementing self-custody with additional safeguards provides a balance between the desire for financial sovereignty and the need for risk management. This partnership to build a dynamic and secure recovery solution reflects our commitment to meet the evolving needs of institutional investors.”
Thomas Eichenberger, Chief Product Officer, Sygnum Bank
"This collaboration serves a twofold purpose: first, to meet the complex needs of existing crypto users; second, to create a foundation for newcomers from diverse backgrounds. Our goal is to establish a flexible recovery solution that adapts to users' changing values, enhancing the security and inclusivity of the digital asset environment."
Morgan Williams, Head of Product, Coincover
Safe{RecoveryHub} will be available to all Safe{Wallet} users from today, while solutions from partners will be launched in the first half of 2024. For more information, interested parties and community members can visit the safe wallet landing page.