QUARTERLY REPORT

For most of crypto's history, security depended on a small number of people paying very close attention: teams reviewing code, signers checking addresses, protocols watching dashboards, and multisigs approving transactions they believed they understood.

That model carried the industry far. But it is no longer enough.

The same AI systems that help teams understand complex systems faster also give attackers new reach. They can analyze codebases, transaction histories, interfaces, and social context at a scale no human team can match by watching screens. Security can no longer only mean reacting well after something has gone wrong. It has to move closer to the moment where value moves.

That is the idea behind Safenet.

In April 2026, Safe Ecosystem Foundation launched Safenet Beta, a network built to bring transaction checks and enforcement onchain. The launch came as Q2 recorded more reported crypto security incidents than any previous quarter: 83 incidents and an estimated $755 million stolen.

Six genesis validators operate the network, with 54.8 million SAFE staked across 539 stakers. SafeDAO approved 5 million SAFE in funding through SEP-55, and by quarter-end the network had processed 455,646 transaction checks.

The broader Safe ecosystem also recorded its strongest quarter to date.

April was the busiest month in Safe's history, with 55.4 million transactions. During the quarter, Safe processed nearly 130 million transactions, surpassing the Q1 record. Monthly active Safe accounts increased each month, reaching 2.73 million in June. By quarter-end, over 63 million Safe accounts had been created, a 20 percent year-over-year increase.

This activity held up even as crypto prices fell sharply in June. Active accounts continued to rise, and the value transferred through Safe accounts on Ethereum, expressed in ETH, reached its quarterly high.

Safe has become essential account infrastructure for crypto. Consumer applications use Safe to give millions of people programmable accounts without adding friction. Protocols and institutions use it to manage capital without giving up control. During emergencies, Safe gives large groups a trusted way to coordinate quickly.

We saw that clearly after April's Kelp DAO exploit. Through DeFi United, more than 142,000 wallets participated in an Aave-led effort that coordinated approximately $300 million through Safe smart accounts to help restore rsETH's backing.

Safe was created so that individuals, teams and institutions could hold and transfer digital assets without relinquishing control. That purpose has not changed. What is changing is the scale of the challenge.

As more value moves onchain, users need more than secure ownership. They need to understand what a transaction will do, coordinate around shared assets and stop dangerous actions before value leaves an account.

Safe is evolving from infrastructure that safeguards value into a network that can also help verify how value moves.

There remains much to build.