Bitcoin Multisig Vaults: How To Secure Billions Of Dollars In Bitcoin (2024)

Athena Alpha

In our first piece in this three part series we covered a number of different design considerations you should be aware of when dealing with Expert Cryptocurrency Security. Now that we’ve got a good handle on what our top priorities should be, we’re going to dive deeper into what some of the leading best practices are in the crypto industry when creating Bitcoin Multisig Vaults.

These are the procedures and standards that massive custodians like Coinbase or Unchained Capital use to custody, quite literally, billions in bitcoin. We’ve read through them all, cover to cover, and condensed the information down into simple and actionable points so you don’t have to. Let’s get started!

Bitcoin Multisig Industry Standards

Requirements for the design, generation, setting up, storage and operation of crypto custody solutions for the huge companies that custody billions of dollars in bitcoin are based off these documents or ones very similar in nature:

There are obviously far more standards out there, but after reviewing these and many others, there’s a general trend in the most important parts of self custody, security and ongoing maintenance. These are three of the best and most open standards out there and we’ve broken them down into three main categories: Seed Generation, Wallet Creation and Seed Storage.

Each section below has a list of recommended requirements that you should strive to meet when designing your own custody solution. In the third and final part of this series, we’ll propose a Bitcoin multisig vault solution that meets these requirements and that you can personally setup all for a one time, up front cost of about $500 USD.


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