QUARTERLY REPORT

Finance is moving onchain, and Safe is already part of how it operates. Across more than 400 chains, organizations use Safe{Wallet} to manage treasuries, protocols use Safe smart accounts to govern shared assets, and applications use them to put accounts in the hands of millions of people. Years of building for these different needs have made Safe a common foundation for an increasingly diverse financial system.

Q3 further strengthened this foundation. Robinhood Chain and Arc launched with Safe smart accounts live from day one, and ADI Chain added them for institutional treasury and protocol administration. As new markets and applications come onchain, they build on the account infrastructure the ecosystem already uses.

Safe smart accounts held $57.64 billion at quarter-end, up from $27.24 billion at the Q2 close, as ETH rose 66% and the figure counted DeFi positions for the first time. Stablecoin balances rose 15% to $7.48 billion, while accounts transferred $44.75 billion during the quarter, up 14%. This is the scale of Safe's position in onchain finance: billions held and transferred through infrastructure already embedded across the ecosystem. As institutional adoption grows, Safe brings an established account standard, a broad developer ecosystem and years of operating experience to the next wave of financial products.

As those operations grow, so do the demands on Safe smart accounts. Teams need to administer multiple Safes, keep a clear record of decisions, and understand what they are approving. Safe Labs announced Safe Pro in September to bring company-wide administration, audit history and reporting into that work. Safe was created so that individuals, teams and institutions could hold and transfer digital assets without relinquishing control.

Security has to grow with that scale. In the last report, I wrote about the need to bring security closer to the moment value moves. Safenet is how we are doing that: a network that checks transactions, backed by SAFE staking, with enforcement being built into the account itself.

In Q3, the Safenet Guard passed formal verification, and Sentinels reached testnet. SAFE staked rose 34% to 73.5 million once staking opened inside Safe{Wallet}, and the network checked 460,146 transactions. Q3 also defined Safenet's fee model, in which Sentinels earn a fee for each check and SafeDAO sets the parameters. SEP-56 asked SafeDAO to subsidize validators and Sentinels for the first twelve months, until fees can sustain the network. These steps bring the network closer to the workflows where people review and approve transactions.

Developers and ecosystem partners continue to expand what Safe smart accounts can do, from accounting and payments to mobile access and agent-operated accounts.

Our task is to make self-custody work at the scale of the financial activity it supports. Safenet checks reached Safe{Wallet} on October 21. For the rest of Q4, we will focus on delivering Safe Pro and opening the network to independent Sentinels. The people and organizations building on Safe should be able to take on more without giving up ownership of their assets.