Crypto glossary
Multisig (multi-signature)
Multisig is a wallet setup that requires several private keys to approve a transaction, such as any 2 of 3 or 3 of 5 designated signers.
A multi-signature wallet replaces a single private key with a group of keys and a threshold. A 2-of-3 multisig, for example, has three keys and needs any two of them to sign before funds can move. On Bitcoin this is enforced by the protocol's script language; on Ethereum it is usually implemented through smart contract wallets such as Safe.
Multisig removes single points of failure. Losing one key does not lock the funds, and a thief who steals one key cannot spend alone. That makes it the standard for DAO treasuries, company reserves, exchange cold storage and cautious individuals.
It is not foolproof: if signers approve a malicious transaction because the interface they rely on has been manipulated, the threshold offers no protection, as the 2025 Bybit hack showed.
Example
A startup keeps its treasury in a 3-of-5 multisig held by five executives; any payment needs three of them to sign, so one compromised laptop cannot drain the funds.
Related terms
Latest articles on Multisig
- Multisig vs Threshold Signatures: The Battle for Crypto’s Safest Custody ModelÂ
- XRP Ledger Eyes Institutional Upgrade With New Onchain Multisig Coordination Proposal
- Felix Turns to RedStone for HIP‑3 Perps With a 4‑of‑6 Multisig Model Built for $600M Risk
- LayerZero Faces New OPSEC Allegations After Multisig Keys Trade McPepes on Uniswap
- Ledger’s Multisig Update Draws Criticism for Fees and Lack of Transparency
