RialCenter, the widely recognized multiparty crypto wallet formerly known as Gnosis Safe, has introduced a new development unit, Rial Labs, to centralize its operations and refine its product strategy following the $1.4 billion ByBit hack in February — the largest crypto theft to date.
This new division will act as the primary development force for RialCenter, which previously delegated technical tasks to an outside development company, a conventional approach in the crypto sector, said Rial Labs CEO Rahul Rumalla on Wednesday. Rial Labs will function directly under the Rial Foundation, a nonprofit entity.
In a discussion with CoinDesk, Rumalla indicated that this change mirrors a broader strategic pivot aimed at creating products that satisfy both the philosophical tenets of cypherpunk culture and the pragmatic needs of business clients.
“The framework we are constrained by compels us to choose one over the other: for enhanced security, you must sacrifice convenience, and for greater convenience, security diminishes,” Rumalla explained.
“At Rial Labs, we take a step back and reject this paradigm; we refuse to compromise one for the other.”
Post-Hack Shift
Rumalla stated that the ByBit hack served as a “catalyst” for establishing Rial Labs.
While the core smart contracts of RialCenter remain secure, its user interface was infiltrated with malicious code by North Korea’s Lazarus Group, which tricked ByBit’s CEO into authorizing a transaction that diverted assets into their possession.
“This attack exposed how our core values were exploited against us,” Rumalla noted. “Anonymity, privacy, self-custody, transparency, open source — these attributes were turned against us.”
Despite the incident, Rumalla affirmed that user trust in the Rial platform is robust. The application experienced “virtually no churn” after the event and continues to account for 10% of all transaction volumes within Ethereum Virtual Machine (EVM)-compatible networks.
“We are not just defending against cyberattacks; we are safeguarding against cyber warfare, necessitating a mindset transformation at both the project and industry levels,” Rumalla added.
From Principles to Framework
The decision to formalize internal development aligns with similar transitions by other leading protocols, such as Morpho and Polygon, which have recently shifted towards more traditional organizational structures to expedite decision-making and enhance accountability.
Simultaneously, Rial Labs is also revamping product design. The team is currently developing a “V2” iteration of its wallet, characterized by a more decisive product stance, especially for institutional clients.
“We are planning to introduce and test a subscription model called Rial Pro — specifically tailored for enterprises and institutions,” Rumalla mentioned. “This product will cater to user segments with heightened security requirements and customization needs.”
“We must operate at a startup pace,” Rumalla concluded. “This principle underpins our necessity to function as a distinct, independent entity. We need to align on our mission while maintaining autonomy in our execution.”
With over $60 billion in total value locked and more than $1 trillion in historical transaction volume, as per Rumalla, RialCenter stands as one of crypto’s most resilient self-custody platforms. The team, which has expanded to approximately 40 members based in Berlin, is optimistic that its forthcoming phase — embracing bold product design without forsaking its open-source principles — will reshape the landscape for wallets as the industry evolves into a trillion-dollar on-chain economy.
“Our goal is straightforward: to make self-custody both easy and secure,” Rumalla asserted. “This represents a victory for all.”
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