Ledger Unveils Offline Tool to Enhance Crypto Wallet Security, Recovery

Hardware wallet provider Ledger announced the launch of “Ledger Recovery Key,” an offline tool designed for the secure recovery of private keys, offering users a method to regain access to their wallets without online services or personal data.

A New Offline Approach

Ledger Recovery Key is an offline physical tool enabling users of Ledger Flex and Stax devices to store their private keys on an NFC-connected smart card. According to a company announcement shared with Cointelegraph, the tool facilitates private key storage on a secure card.

The new offering differs significantly from Ledger’s earlier solution, “Ledger Recover.” While Ledger Recover stores encrypted recovery phrase fragments in cloud-connected hardware security modules, Recovery Key operates entirely offline and relies solely on the user’s PIN for protection.

Furthermore, the new tool is optional for users and does not require identity verification or the collection of personal information, unlike the previous online recovery method.

Simplifying Recovery via NFC

Designed exclusively for NFC-compatible Ledger Flex and Stax wallets, the Ledger Recovery Key connects directly to Ledger devices using secure wireless NFC channels without intermediaries, as confirmed by the company.

Ledger highlighted that it has built Recovery Key with “Secure Element,” which serves as the main security layer and is the same technology integrated into Ledger’s hardware wallet devices.

Ledger Recovery Key physical device — Ledger Recovery Key is a physical NFC smart card enabling offline private key storage. Source: Ledger

Transparency and Security

Emphasizing its commitment to transparency, Ledger has made the application code for Ledger Recovery Key open-source on GitHub and published accompanying documentation.

The tool has undergone internal security testing, including analysis by the company’s white-hat hacker team, Donjon, and received external security audits from firms like Synacktiv.

Ledger Recovery Key components — Ledger Recovery Key’s hardware components. Source: Ledger

Bolstering Self-Custody Solutions

Ledger’s latest release aims to improve the usability of self-custody, which involves holding cryptocurrency without a third party (e.g., exchange). While offering users full control, self-custody carries risks associated with secure private key management, such as loss or theft.

Addressing these challenges, Ledger noted this solution follows other industry approaches like seedless wallets, physical backups (e.g., metal plates), and advanced backup methods (e.g., Shamir Backup).

Ledger previously introduced Ledger Recover in 2023, a now-active cloud-based paid recovery service that faced community backlash over privacy concerns during its initial phase but continues to operate and expand its user base.