Safe, Sygnum Bank, CoinCover Partner to Launch Optional Crypto Recovery Hub

Smart wallet infrastructure provider Safe is partnering to launch a curated suite of crypto recovery options, dubbed “Safe Recovery Hub.”

The service is offered in collaboration with global digital asset banking group Sygnum Bank and the UK-regulated recovery service provider – CoinCover.

Per a company statement, the crypto recovery hub offers a wide range of options including self-custodial, social recovery, among others.

The service enables users to optimize a key recovery solution to fit their personal risk preferences, explains Lukas Schor, co-founder at Safe. This addresses the challenges in the existing complex key management, where users have few recovery options available.

Safe Recovery Hub users can recover access to their digital asset accounts through “recoverers,” which are family members and friends. In addition, third-party service providers like Sygnum Bank and CoinCover are designated as recoverers in order to facilitate recovery.

Only users give access and control to the recoverers in case of a recovery event, even in a custodial setup. At other times, users retain full control and have the right to cancel any recovery attempt, the company statement read.

“This user-driven module, where account holders dictate the terms of asset management themselves, is unprecedented both in the crypto industry and traditional finance, marking a new milestone in the path towards financial sovereignty.”

According to a GitHub post, more than 900,000 ETH (worth $1.92 billion) were inaccessible to users, with forgotten keys. Thomas Eichenberger, Chief Product Officer at Sygnum Bank emphasizes the growing need for reliable institutional recovery solutions in such cases.

“This partnership to build a dynamic and secure recovery solution reflects our commitment to meet the evolving needs of institutional investors,” Eichenberger added.

The Safe Recovery Hub will be available to users of Safe wallet. However, services from partner companies will debut in the first half of 2024.