Safe, a prominent smart wallet infrastructure provider, is joining forces with Sygnum, a worldwide digital asset banking group, and CoinCover, a UK-regulated recovery service provider. The collaboration aims to launch Safe{RecoveryHub}, a platform offering a diverse range of crypto recovery options. The platform is built on Safe’s robust smart account infrastructure, providing a tailored approach to smart account recovery.

It is estimated that over 900K ETH, equivalent to approximately $1.92 billion, is currently inaccessible to users due to forgotten keys. Despite the appeal of self-custody in the web3 era, complex key management remains a significant hurdle for users, with limited recovery solutions available. Safe{RecoveryHub} aims to address this issue by offering a comprehensive suite of recovery solutions for all digital asset holders, from large institutions to individual users.

Users can regain 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.” Trusted third-party service providers like Sygnum and CoinCover can also be designated as recoverers to facilitate recovery.

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. Users retain full control through veto rights to cancel any recovery attempt at all other times. Users can also set up multiple recoverers and apply a threshold to further enhance security.

Lukas Schor, co-founder at Safe, stated, “With this solution, users are empowered to optimize 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.”

Thomas Eichenberger, Chief Product Officer, Sygnum Bank, added, “As the market for self-custody expands and new use cases emerge, there is a growing need for reliable institutional recovery solutions. This partnership to build a dynamic and secure recovery solution reflects our commitment to meet the evolving needs of institutional investors.”

Morgan Williams, Head of Product at CoinCover, added, “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.”

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.