In essence, Sygnum can restore access to users' wallets when designated as a recoverer on the Safe{RecoveryHub}. This means that if a user loses a signing key, Sygnum, acting as the recoverer, can help regain access.
The initiative reflects Sygnum's focus on secure and compliant crypto self-custody, developed in collaboration with Safe, a provider of multi-signature web3 wallet infrastructure. The wallet recovery solution addresses a critical issue in the cryptocurrency space by offering a way for owners to retain control over their assets while reducing the risks associated with key loss.
The new solution aims to tackle one of crypto's persistent problems: the loss of access to assets due to lost keys. According to the official press release, more than 900,000 ETH (roughly USD 1.92 billion) is believed to be inaccessible to users, in large part because of forgotten or misplaced keys. Sygnum’s recovery module, integrated into Safe’s platform, is designed to help prevent such losses. While self-custody has been a core tenet of web3, users have often faced challenges around key management and recovery, with few institutional solutions available until now.
The recovery service offered through Safe{RecoveryHub} is available to a broad range of users, from institutions to individuals. It allows users to pre-configure wallet recovery by assigning trusted third parties, such as Sygnum, to act as recoverers. This approach moves beyond traditional methods of ‘social recovery,’ where individuals relied on friends, family, or backup devices to regain access.
Even with this solution, users retain autonomy over their assets. Recovery can only occur with their approval, and they have the ability to cancel any recovery attempt through on-chain veto rights. Users can also enhance security by designating multiple recoverers and employing delay modules.
Representatives from Sygnum emphasised the bank’s commitment to providing reliable crypto self-custody solutions. They noted that the collaboration with Safe meets the growing demand for safeguards in the web3 space, particularly as more users are looking for a balance between financial sovereignty and risk management.
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