General information, not financial advice. Test any setup with a small amount first. Status 23 October 2026.
Full self-custody makes you solely responsible. Custodians remove that responsibility but take control of your coins. Collaborative custody sits between the two.
How it works
- A multisig wallet, usually 2-of-3.
- You hold two keys, typically on hardware wallets.
- A service holds the third key.
What it solves
- You lose one key: your remaining key plus the service's key can move the coins to a new wallet.
- Inheritance: heirs can work with the service, after verification, to recover funds.
- The service cannot spend alone: one key is not enough. If the company disappears, your two keys still work.
What to check
- Can you leave without them? You must have the full wallet configuration (descriptor with all xpubs) yourself. Without it, the company is a hidden single point of failure.
- Privacy: the service knows your xpub and can see your balance and history, and often your identity.
- Legal pressure: the service can refuse to sign, but cannot sign without one of your keys.
- Test it: practise a spend with your two keys alone.
Who it fits
People with large amounts who want protection against their own mistakes, without handing over control. The core principle stays: no single party, including you, should be able to lose everything.