Modular Security with Smart Accounts

Safe Labs is developing its products using Safe’s modular Smart Account architecture — a smart contract-based wallet system that prioritizes security, adaptability, and user control. The ultimate goal is to offer a seamless and secure digital asset management experience for enterprise users.

According to Safe co-founder Lukas Schor, the success of Web3 hinges on empowering users with complete control over their digital assets. Safe Labs is a step forward in building infrastructure that supports this digital sovereignty, with a focus on institutional-grade quality.

A Proven Leader at the Helm

Safe Labs is led by Rahul Rumalla, a seasoned expert with over 15 years of experience in product and engineering leadership. Rumalla previously served as Safe’s Chief Product Officer and has also founded Web3 ventures like Paperchain and Otterspace. His background includes a role as Director of Engineering at SoundCloud.

Rumalla emphasized that Safe Labs is targeting “any organization managing or exposing users to on-chain value.” In fact, many businesses are already using Safe’s infrastructure — some for years.

Currently, Safe secures $60 billion in digital assets, facilitates around 4% of all Ethereum transactions, and supports approximately 10% of all EVM-based smart accounts.

Why Self-Custody Matters for Institutions

Self-custody means individuals or entities retain full control over their private keys without relying on third-party custodians. For institutions, this is particularly critical for minimizing risk and enhancing control over funds.

Many opt for multisignature setups, where multiple keys are needed to authorize transactions. However, this introduces another layer of complexity and potential risk: blind signing.

The Ongoing Challenge of Blind Signing

Blind signing occurs when users approve a transaction on a hardware wallet without seeing full transaction details on the device itself. This typically happens because the wallet doesn’t natively support the custom data or smart contract logic involved.

Such situations have led to major vulnerabilities. A key example is the $1.4 billion Bybit hack in early 2024, where blind signing — combined with a compromised developer device — played a major role in the breach.

Despite advances, Safe’s current smart account system still requires blind signing for certain interactions. Experts argue that solving this challenge will require tighter integration between smart contract wallet developers like Safe and hardware wallet manufacturers such as Ledger and Trezor.

Ledger CEO Pascal Gauthier has openly criticized blind signing practices, comparing them to “signing blank checks online” — a sentiment echoed throughout the industry.

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