afe wallet infrastructure provider Safe has announced a new partnership with Sygnum Bank and CoinCover to launch an optional crypto recovery service called Safe Recovery Hub.
This will provide users an easy way to optimize key recovery solutions according to their personal risk preferences and address challenges in existing complex key management.
Problem with Current Key Management
Over the years, many crypto users have faced difficulties recovering access to their funds due to losing or forgetting private keys. According to a GitHub post, more than 900,000 ETH (worth $1.92 billion) were inaccessible due to forgotten keys.
The existing key recovery options are also limited and complex for most users. This puts a significant amount of funds at risk of being permanently lost.
Launch of Safe Recovery Hub
Safe Recovery Hub aims to solve this problem by offering a simple and curated suite of recovery options to its users. This includes self-custodial, social recovery methods where users can designate friends/family as "recoverers" as well as partnering with institutional providers like Sygnum Bank and CoinCover for recovery assistance.
With Safe Recovery Hub, users have full control over their funds at all times except during a recovery process which they initiate. They can optimize their preferred recovery solutions based on their personal risk level.
In case of a loss of keys/funds, users can trigger the recovery process through designated "recoverers" like friends, Sygnum Bank or CoinCover. Only the user has the power to grant or cancel access during recovery.
The service is also aimed at meeting the needs of large institutional investors. Thomas Eichenberger, Chief Product Officer at Sygnum Bank said the partnership will help build a dynamic and secure solution for recovery of digital assets, especially considering the evolving needs of institutions. They aim to rollout access to partnership recovery services in the first half of 2024.
Some key benefits of Safe Recovery Hub include: Wide range of customizable recovery solutions, Putting users in full control during recovery process, Mitigating risks of permanently lost crypto funds, Catering to needs of both individual and institutional investors, and; Facilitating recovery through partners during loss of keys.
Safe Recovery Hub provides a unique recovery process fully controlled by users themselves. This marks an important milestone in enabling more accountability and sovereignty in digital asset ownership.
The addition of regulated institutional partners also enhances security and reliability. Overall, it addresses a major pain point for the crypto industry by offering an easy and optimal solution for key recovery needs.