Introducing Safe{RecoveryHub} - A new crypto wallet recovery ecosystem launching with Sygnum and Coincover

Debbie Chia & Anirudh Chohan

AnnouncementsDec 6, 20236 min read

Safe{Wallet}

New Feature

Safe is excited to introduce Safe{RecoveryHub} – a new crypto wallet recovery ecosystem launching with Sygnum and Coincover

Safe is excited to introduce Safe{RecoveryHub} – a marketplace of options in Safe{Wallet} to set up account recovery, your way.

Launched in collaboration with Sygnum, a global digital asset banking group, and Coincover, a UK-regulated recovery service provider, Safe{RecoveryHub} offers a curated suite of crypto recovery options. Built with Safe’s battle-tested smart account infrastructure at its core, this marketplace of solutions lays the technical groundwork for a tailored approach to smart account recovery.

“One of the great challenges with making cryptocurrency and blockchain applications usable for average users is security: how do we prevent users' funds from being lost.” – Vitalik Buterin, in “Why we need wide adoption of social recovery wallets”

With the great power of self-custody comes great responsibility. But the reality is, not everyone is equipped or savvy enough to take on that responsibility. It has been estimated that over 900K ETH (worth approximately $1.92 billion) is inaccessible to users, with significant losses due to forgotten keys. Despite self-custody being one of the original value propositions of web3, complex key management remains a significant barrier for users.

Enter Safe{RecoveryHub}. Not only does this novel account recovery marketplace give you the power to recover your account, it also offers a spectrum of recovery options with something for every type of self-custody appetite.

With the aim to provide the best user experience across all possible set-ups, Safe{RecoveryHub} will gradually roll-out different recovery options from self-custodial recovery to a third-party recovery setup. Starting from today, self-custody recovery will be available in Safe{Wallet}. Sygnum and Coincover recovery partners will be added in H1 2024, plus more to come.

Account recovery, your way

Safe{RecoveryHub} provides a curated suite of crypto recovery options, offering a customised approach to account recovery with something for every profile – from institutional treasuries to DAOs, or individual users. Users, as first-party, will have the ability to recover access to their accounts through designated “Recoverers”, which can be, a hardware wallet, family members, friends, collaborators, among other examples. They can also choose a third-party recovery option with Safe{RecoveryHub} ecosystem partners right through Safe{Wallet}.

Critically, even with a third-party providers, users retain ultimate control through veto rights to cancel any recovery attempts. At no stage does a user ever share any private key material with third parties. Users can also designate multiple Recoverers—as many as they feel comfortable with—to bolster account security.

Now available in Safe{Wallet}: Self-custodial recovery

Starting from today, Safe{Wallet} users can set-up customised account recovery to help regain access to their lost account. Account recovery is currently supported for the following networks: Ethereum, Arbitrum, Optimism, Polygon, and Gnosis Chain.

How does Safe{Wallet} self-custodial recovery work

In Safe{Wallet}, account recovery can be easily set up through the Security & Login settings. The account recovery process enables a Recovery module, which will require a transaction. Users can change Recoverers or alter their recovery setup at any time.

Key settings to configure

Recoverer: A nominated “guardian” that can initiate the recovery process for your account. It can also be another account that you own.
Review window: A delay period during which you can reject the recovery from happening. The default setting is at 28 days.
Transaction expiry: The time frame during which the recovery can be executed after the delay expires. The default setting is infinite.

How account recovery works in a nutshell

1. Set up: Choose a Recoverer and set a review window

Only your chosen Recoverer can initiate the recovery process. The process can be cancelled at any time during the review window.

2. Need to recover access?

Let the Recoverer connect and start the recovery process. Your trusted Recover is able to propose a new Safe Account ownership setup on-chain to help you regain access to your funds.

(Review window time elapses…)

3. All done! The Recoverer can now set your wallet as a new owner

Once the review window has passed, you can execute the recovery proposal and regain access to your Safe Account.

Building an ecosystem of account recovery

Launching in H1 2024, users can soon nominate trusted third-party service providers like Sygnum, a Swiss-regulated bank with over CHF 3.5B assets held in institutional-grade custody, and CoinCover as designated recoverers to facilitate recovery.

Adding reputable, institutional-grade third-party partners such as Sygnum and Coincover as options broadens and expands the range of recovery options for users with differing preferences and needs. Besides self-custodial recovery, users will be able to include third-party partners in potentially mixed and hybrid custody setups.

“As the market for self-custody expands and new use cases emerge, there is a growing need for reliable institutional recovery solutions. For individuals holding valuable digital assets, complementing self-custody with additional safeguards provides a balance between the desire for financial sovereignty and the need for risk management. This partnership to build a dynamic and secure recovery solution reflects our commitment to meet the evolving needs of institutional investors.” – Thomas Eichenberger, Chief Product Officer, Sygnum

"This collaboration serves a twofold purpose: first, to meet the complex needs of existing crypto users; second, to create a foundation for newcomers from diverse backgrounds. Our goal is to establish a flexible recovery solution that adapts to users' changing values, enhancing the security and inclusivity of the digital asset environment." – Morgan Williams, Web3 Product Director, Coincover

Be the first to know when our partner recovery solutions are available:

How it works under the hood

Here are just some possible set-up configurations imagined:

Individual Recovery

Nominate another trusted individual account, for example, a hardware wallet or an account on another device

Third-party Recovery

Nominate an established recovery provider such as Sygnum or Coincover (available H1 2024)

Friends & Family (Social) Recovery

Nominate various trusted friends or family members with any threshold

DAO Alliance Recovery

Nominate one or multiple DAO Multisigs with any threshold

Hybrid or Mixed Recovery

Nominate a mix of all the above, such as an externally owned or smart account, DAO, neighbour —whatever makes you Safe.

“With this solution, rather than face a binary choice between a self-custody or custodial experience, users are empowered to optimise a key recovery solution to fit their personal risk preferences. This user-driven module, where account holders dictate the terms themselves, is unprecedented both in the crypto industry and traditional finance, marking a new milestone in the path towards financial sovereignty.” – Lukas Schor, Co-Founder, Safe

Safe{RecoveryHub} will be available to all Safe{Wallet} users from today, starting with self-custodial recovery on Ethereum, Arbitrum, Optimism, Polygon, and Gnosis Chain. Recovery partner solutions from Sygnum and Coincover will launch in H1 2024.

👀 Builders, watch out for Safe{Core} composable recovery solutions coming your way in 2024.

Set up account recovery with Safe{RecoveryHub}

For more details including a step-by-step guide on how to set up account recovery, check out our Help Center article: Account recovery with Safe{RecoveryHub}.

Try it now: Set up self-custodial recovery in Safe{Wallet}.

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