Safe Launches Safe Labs: Aims to Secure Enterprise Crypto Self-Custody

%3Cp%3ESafe%2C%20a%20crypto%20self-custody%20company%20previously%20known%20as%20Gnosis%20Safe%2C%20has%20launched%20a%20subsidiary%2C%20Safe%20Labs%2C%20to%20build%20enterprise-grade%20self-custody%20solutions.%3C%2Fp%3E%3Cp%3EAccording%20to%20a%20June%205%20announcement%20shared%20with%20Cointelegraph%2C%20Safe%20Labs%20is%20a%20commercial%20subsidiary%20wholly%20owned%20by%20Safe.%20It%20will%20focus%20on%20building%20institutional%20products%20using%20Safe%20Smart%20Accounts%2C%20a%20modular%20smart%20contract-based%20wallet%20system.%3C%2Fp%3E%3Cp%3E%26ldquo%3BThe%20future%20of%20Web3%20depends%20on%20giving%20users%20absolute%20confidence%20in%20their%20digital%20sovereignty%2C%26rdquo%3B%20said%20Lukas%20Schor%2C%20co-founder%20of%20Safe%20and%20president%20of%20the%20Safe%20Ecosystem%20Foundation.%20%26ldquo%3BWith%20Safe%20Labs%2C%20we%26rsquo%3Bre%20building%20the%20infrastructure%20to%20make%20that%20possible%20%26mdash%3B%20enterprise-grade%2C%20secure%20and%20intuitive%20by%20design.%26rdquo%3B%3C%2Fp%3E%3Cp%3ESafe%20Labs%20will%20be%20led%20by%20Rahul%20Rumalla%2C%20formerly%20the%20company%26rsquo%3Bs%20chief%20product%20officer.%20Rumalla%20has%20more%20than%2015%20years%20of%20experience%20in%20engineering%20and%20product%20leadership%2C%20having%20founded%20Web3%20startups%20Paperchain%20and%20Otterspace%2C%20and%20previously%20served%20as%20director%20of%20engineering%20at%20SoundCloud.%20%20%3C%2Fp%3E%3Cp%3ERumalla%20told%20Cointelegraph%20that%20the%20firm%26rsquo%3Bs%20target%20is%20%26ldquo%3Bany%20business%20that%20needs%20to%20hold%20or%20expose%20customers%20to%20onchain%20value.%26rdquo%3B%20He%20also%20said%20that%20%26ldquo%3Bplenty%20of%20enterprises%20and%20institutions%20are%20already%20using%20us%20and%20have%20been%20doing%20so%20for%20years%20now.%26rdquo%3B%3C%2Fp%3E%3Cp%3EHe%20added%20that%20the%20new%20unit%20would%20allow%20the%20company%20to%20%26ldquo%3Bbuild%20a%20more%20opinionated%20product%26rdquo%3B%20for%20clients.%3C%2Fp%3E%3Cp%3EAccording%20to%20Rumalla%2C%20Safe%20currently%20secures%20%2460%20billion%20in%20assets%2C%20powers%204%25%20of%20all%20Ethereum%20transactions%2C%20and%20anchors%20about%2010%25%20of%20the%20Ethereum%20Virtual%20Machine%20smart-account%20market.%3C%2Fp%3E%3Ch2%3EThe%20importance%20of%20self-custody%3C%2Fh2%3E%3Cp%3ESelf-custody%20refers%20to%20users%20maintaining%20control%20of%20their%20private%20keys%2C%20a%20critical%20component%20for%20safeguarding%20crypto%20assets%20without%20relying%20on%20third-party%20custodians.%20%20%3C%2Fp%3E%3Cp%3ETo%20enhance%20their%20safety%2C%20institutional%20investors%20often%20also%20rely%20on%20multisignature%20setups.%20They%20require%20multiple%20private%20keys%20to%20authorize%20a%20transaction%2C%20rather%20than%20just%20one.%3C%2Fp%3E%3Cp%3EStill%2C%20many%20multisignature%20setups%20require%20so-called%20blind%20signing%20with%20hardware%20wallets.%20Blind%20signing%20refers%20to%20approving%20a%20transaction%20on%20a%20hardware%20wallet%20without%20being%20able%20to%20fully%20verify%20its%20details%20on%20the%20device%26rsquo%3Bs%20screen.%3C%2Fp%3E%3Cp%3EThis%20is%20because%20such%20transactions%20often%20leverage%20complex%20smart%20contract%20logic%20or%20custom%20data%20formats%20that%20the%20hardware%20wallet%20doesn%26rsquo%3Bt%20natively%20support.%20This%20means%20that%20the%20user%20needs%20to%20trust%20the%20transaction%20information%20displayed%20by%20their%20internet-connected%20and%20vulnerable%20device%20%26mdash%3B%20usually%20a%20computer%20%26mdash%3B%20when%20approving%20a%20transaction.%3C%2Fp%3E%3Cp%3EThis%20has%20led%20to%20disastrous%20consequences%20in%20the%20past.%20One%20recent%20example%20is%20February%26rsquo%3Bs%20massive%20%241.4%20billion%20Bybit%20hack%2C%20which%20was%20attributed%20to%20blind%20signing%20in%20the%20Safe%20suite.%3C%2Fp%3E%3Cp%3EThe%20custody%20provider%20also%20released%20a%20post-mortem%20update%20explaining%20the%20root%20cause%20of%20the%20recent%20Bybit%20hack%20%26mdash%3B%20a%20compromised%20developer%20machine.%3C%2Fp%3E%3Cp%3EBinance%20co-founder%20Changpeng%20%26ldquo%3BCZ%26rdquo%3B%20Zhao%20criticized%20the%20update.%20He%20claimed%20that%20the%20company%20brushed%20aside%20some%20issues%20involved%20and%20did%20not%20answer%20important%20questions%20raised%20by%20the%20hack.%3C%2Fp%3E%3Cp%3E%3Ciframe%20width%3D%22100%25%22%20height%3D%22315%22%20src%3D%22https%3A%2F%2Fwww.youtube.com%2Fembed%2FNDv0RfehETQ%3Fstart%3D%22%20frameborder%3D%220%22%20allow%3D%22accelerometer%3B%20autoplay%3B%20encrypted-media%3B%20gyroscope%3B%20picture-in-picture%22%20allowfullscreen%20loading%3D%22lazy%22%3E%3C%2Fiframe%3E%3C%2Fp%3E%3Ch2%3EBlind%20signing%20is%20still%20involved%3C%2Fh2%3E%3Cp%3ESafe%26rsquo%3Bs%20upcoming%20product%20is%20based%20on%20its%20%26ldquo%3BSafe%20Smart%20Accounts%2C%26rdquo%3B%20a%20modular%20smart-contract%20wallet%20built%20on%20the%20firm%26rsquo%3Bs%20infrastructure.%20It%20allows%20for%20multisignature%20manageme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