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@"Mike Molloy" We are using our trusted device security model to maintain E2E encryption even though there is no password or secret key for a passkey account. In this security model the passkey is only doing identity verification with 1Password.com and not protecting the data directly.

We have published a blog post on how the trusted device model works https://blog.1password.com/unlock-sso-deep-dive/. All the security properties described there apply to our unlock with passkey accounts