Sygnum is launching a web3 wallet recovery module built on Safe via the Safe{RecoveryHub}.
According to Sygnum Bank, this solution makes self-custody wallet recovery reliable and user-friendly.
Given more than 900K ETH (USD 2.27 billion) estimated as inaccessible to users, and losses due to forgotten keys, Sygnum is launching a much-needed web3 wallet recovery module built on Safe.
Self-custody is considered to be one of the value propositions of web3, but barriers to recovery management remain for users: for instance, complex key management and no trusted institutional wallet recovery solutions.
The Sygnum web3 wallet recovery solution on the Safe{RecoveryHub} offers recovery solutions for digital asset holders, from large financial institutions to individual users.
Users can set up the service to enable recovery of access to crypto assets in their multi-sig Safe accounts.
Before this initiative, recovery solutions could be set up by relying on personal backup devices, family members, friends and collaborators, in a process called “social recovery.”
With so-called trusted third-party service providers like Sygnum, a Swiss-regulated bank with institutional-grade custody, there can also be designated as a recoverer, to restore access to wallets if a private key is lost.
Notably, users are now able to retain autonomy with this web3 wallet recovery solution.
This is possible for a self-custody setup, as users can now approve Sygnum web3 recovery to re-enable access should a recovery event occur.
The recovery service is set up via the wallet owner’s identity as the key to access, addressing compliance guidelines.
At all times, the user retains full control, via onchain veto rights, and is “able to cancel any recovery attempt.”
In addition, users can set up multiple recoverers and apply “a delay module to further bolster account recovery security.”
This aligns with Vitalik Buterin’s support for a holistic approach to recovery, designating a set of at least three recoverers or “guardians,” who can be split among personal connections and institutions.
As noted in the update, Safe is an onchain asset custody protocol, securing ~USD 65 billion in assets today.
It is establishing a universal ‘smart account’ standard for secure custody of digital assets, data, and identity.
With Safe{Wallet}, its web and mobile wallet and Safe{Core} account abstraction infrastructure, Safe aims to “unlock digital ownership for everyone in web3, including DAOs, enterprises, retail and institutional users.”
The mission of the Safe Ecosystem Foundation is to support development of Safe, to strengthen Safe tech and to enable the Safe ecosystem.
The Safe Ecosystem Foundation is a non-profit entity reportedly based in Zug, Switzerland, that helps educate people about Safe smart accounts .