Sygnum is launching a web3 wallet recovery module built on Safe through the Safe{RecoveryHub}, setting a new standard in crypto.
This solution makes self-custody wallet recovery reliable, easy to set up, and user-friendly.
• Sygnum is the first bank in the world to provide web3 wallet recovery: when designated as a recoverer on the Safe{RecoveryHub}, Sygnum can restore access if a user loses a signing key
• Sygnum’s secure, tailored, compliant approach to crypto self-custody and web3 user account recovery is built and launched in collaboration with Safe, the largest multi-sig web3 wallet infrastructure provider with over USD 100 billion in assets
• This onchain web3 wallet recovery solution from Sygnum and Safe solves one of crypto’s biggest challenges, enabling owners to retain financial sovereignty while reducing their risks
Given more than 900K ETH (worth approximately USD 1.92 billion) estimated as inaccessible to users, and significant losses due to forgotten keys, Sygnum is launching a web3 wallet recovery module built on Safe that sets a new standard in crypto to address this major challenge in crypto self-custody. Self-custody is one of the original value propositions of web3, but significant barriers to risk and recovery management remain for users: complex key management and no trusted institutional wallet recovery solutions.
The Sygnum web3 wallet recovery solution on the Safe{RecoveryHub} offers recovery solutions for all digital asset holders, from large institutions to individual users. Users can set up the service in advance to enable recovery of access to crypto assets in their multi-sig Safe accounts. Previously, recovery solutions could be set up by relying on personal backup devices, family members, friends and collaborators, in a process known as “social recovery.” Now, trusted third-party service providers like Sygnum, a Swiss-regulated bank with institutional-grade custody, can also be designated as a recoverer, to restore access to wallets if a private key is lost.
Importantly, users retain autonomy with this web3 wallet recovery solution. This is possible for an existing 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 using the wallet owner’s identity as the key to access, addressing compliance and KYC requirements. 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. In effect, this aligns with Vitalik Buterin’s advocacy for a holistic approach to recovery, designating a flexible set of at least three recoverers or “guardians,” who can be split among personal connections and institutions.
Julian Grigo, Head of Institutions and Fintech at Safe Ecosystem Foundation, comments, “From now on, custody is not a binary choice between self-custody or a custodial experience anymore: Sygnum empowers users to optimise key recovery to fit their personal preferences. By letting account holders define the terms of asset management themselves, the wallet recovery solution with Sygnum is unique in the crypto industry and traditional finance, it serves the web3 industry at scale and it marks a new achievement for financial sovereignty. Sygnum's solution also proves that innovative financial institutions see a big potential in self-custody, which is closer to what crypto wants to be: a P2P network.”
Martin Burgherr, Chief Clients Officer at Sygnum Bank, adds, “Sygnum is pleased to collaborate with Safe to build crypto self-custody recovery solutions that can be a reliable complement to institutional crypto asset services and reflect our commitment to meeting the evolving needs of investors. As web3 adoption grows, more people will need safeguards like this that balance financial sovereignty with risk management.”