The Sygnum Bank is partnering with Smart-Wallet and recovery specialists to address the risks associated with self-custody of crypto-assets. It is estimated that there are over 900,000 Ether, equivalent to approximately $1.92 billion, that owners have lost access to due to misplaced keys. To tackle this issue, Sygnum, along with Safe, a company specializing in Smart-Wallet infrastructures, and Coincover, a recovery service, is launching an offering called Safe Recovery Hub. This service allows customers to securely store their crypto wallet keys with trusted partners.

The Safe Recovery Hub is built on Safe’s Smart-Account infrastructure and aims to provide recovery options for all holders of digital assets, from large institutions to individuals. Managing complex key storage remains a significant challenge for users. Under the applied method, users designate recovery agents, such as personal backup devices, family members, friends, or employees, to regain access to their accounts. Safe refers to this process as “social recovery,” with users retaining full control through veto rights.

The Chief Product Officer at Sygnum Bank, Thomas Eichenberger, highlights the growing need for reliable institutional recovery solutions as the market for self-custody expands and new use cases emerge. This approach eliminates the dilemma faced by crypto owners of whether to self-custody or rely on custodial services, allowing them to choose a solution that aligns with their risk preferences.

This recovery system could have been beneficial for the famous Bitcoin loser from the UK, who mistakenly discarded a hard drive containing around 8,000 Bitcoins on a landfill site in Newport. At the current price of approximately $41,311 per Bitcoin, this would amount to a fortune of $330 million today.