Safe RecoveryHub: A New Crypto Recovery Service
On-chain custody protocol Safe has partnered with Sygnum and Coincover to launch a crypto recovery service called Safe RecoveryHub. This optional service provides users with various recovery options, including self-custodial, custodial, and social recovery. Users can restore their access to crypto assets through personal backup devices, family members, friends, or trusted third parties like Sygnum Bank and Coincover.
Importantly, users maintain control over their accounts and can grant recoverers access only during a recovery event. They also have the ability to veto any recovery attempts. Enhanced security is possible by setting up multiple recoverers with a threshold requirement.
“Safe RecoveryHub allows users to optimize a key recovery solution based on their personal risk preferences,” said Safe co-founder Lukas Schor.
Self-Custody and the Challenges
While self-custody offers full control over assets, it comes with trade-offs. Coinbase Director Conor Grogan estimated that over 912,000 ETH (worth over $2 billion) has been lost due to user errors and buggy contracts, accounting for 0.75% of circulating supply. Social recovery alternatives, especially for institutions, can address these challenges.
“As the market for self custody expands, there is a growing need for reliable institutional recovery solutions,” added Sygnum Bank CPO Thomas Eichenberger. “Complementing self-custody with additional safeguards provides a balance between financial sovereignty and risk management.”
The Availability of the Recovery Service
The Safe RecoveryHub service is now available to all Safe Wallet users. Partner solutions are expected to launch in the first half of 2024. Ledger, a hardware wallet provider, also introduced a similar recovery solution earlier this year in collaboration with Coincover, leveraging advanced cryptography and multi-party computation.
Hot Take: Enhancing Security and Convenience with Crypto Recovery Services
The launch of Safe RecoveryHub brings a valuable solution to the crypto market by offering users a range of recovery options. With self-custody becoming increasingly popular, it is crucial to address the challenges associated with potential asset loss. The collaboration between Safe, Sygnum Bank, and Coincover provides users with the flexibility to choose their preferred recovery method while maintaining control over their accounts. This innovative service strikes a balance between financial sovereignty and risk management, catering to both individual and institutional investors. By introducing reliable recovery solutions, the crypto industry is taking significant steps towards enhancing security and convenience for users.
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