The major provider of hardware cryptocurrency wallets Ledger has introduced an offline tool for private key recovery. It helps the users to get access to their crypto wallets without relying on cloud-based services or personal data. Ledger Recovery Key is an offline physical recovery tool allowing Ledger Flex or Ledger Stax users to store their private keys on a smart card with NFC connection. Unlike the Ledger’s previously released key recovery product, Ledger Recover, which stores encrypted fragments of recovery phrases in cloud-based hardware security modules, Ledger Recovery Key is always offline and protected by its own PIN. While also being optional to Ledger wallet users, Ledger Recovery Key does not require identity verification or the collection of personal details, as Ledger Recover does. Ledger Recovery Key will specifically allow users to recover access to their assets by simply tapping the smart card and entering a PIN. Exclusively supporting NFC-connecting Ledger Flex and Ledger Stax wallets, Ledger Recovery Key connects directly to Ledger devices using secure NFC wireless channels with no intermediary. The company said that Ledger Recovery Key is built with Secure Element, the main security layer and the same technology applied by Ledger wallet devices.

The Ledger Recovery Key’s application code is open-sourced on GitHub and has its own white paper. The tool has undergone internal security testing with Donjon, the company’s white hat hacker team, and has been externally audited by the cybersecurity firm Synacktiv. Ledger’s latest recovery tool aims to improve the usability of self-custody, a form of storing crypto assets like Bitcoin and Ethereum without relying on third-party providers. While allowing crypto holders to “be their own bank” by giving users sole responsibility for secure storage of the private key to access their assets, self-custodial storage solutions have long been associated with risks such as key loss or theft. Many companies have tried to solve this problem by introducing seedless self-custodial wallets, or physical backup solutions like fire-proof metal plates or more sophisticated backup methods. In 2023, Ledger introduced another option for recovering keys, a paid cloud-based solution called Ledger Recover. The service was temporarily paused due to feedback from the community with concerns about third-party entities, but has continued operating. Despite the tough start, according to the company, Ledger Recover is performing well and continue to grow as more new users enter the Ledger ecosystem.