Keystone firmware versions V1.1.1 (BTC-Only) or newer supports PSBT Muti-signature functions. This instruction here will show how to create a 2/3 PSBT Multi-signature wallet with Keystone, Coldcard and a SeedPicker as 3 participant co-signers, we will use here Sparrow V1.4.2 as a watch-only wallet, let’s see it all in detail.
1. Firmware version V1.1.1 (BTC-Only) or newer running on Keystone Essential or Pro. Create recovery phrase A.
Tips: Keystone also can be imported through scanning QR code.
3) Repeat step (2) to create the other two keystores and when done click on [Apply].
Note: When importing the Seedpicker Xpub, we suggest you to choose the “Keystone Multisig” option, but select file of Seedpicker Xpub (recovery phrase C), this way the third keystore will show as “Keystone 2”.
- Import the multisig wallet file to Keystone
1. Export the multisig wallet file (for Keystone) to the microSD card.
III. Receiving bitcoin to the 2/3 multisig address
1. On Sparrow Wallet: Click [Receive], Sparrow will display the receiving address. (You can also go into the Addresses menu and use any address displayed, but we mainly recommend using the ones via Receive.)
2. On Keystone: Touch [Addresses] to display the receiving addresses.
IV. Sending bitcoin from the 2/3 multisig wallet (Keystone & Coldcard)
Generate the multisig transaction on watch-only wallet (Sparrow Wallet) through scanning unsigned multisig transaction data or exporting unsigned multisig transaction file to microSD card.
1. Create a multisig transaction on Sparrow Wallet
1) Click on [Send] > Set the receive address, Label, amount and fee > Click on [Create Transaction].
2) Click on [Finalize Transaction for Signing].
2. Partially sign with Keystone
Tips: Here users can choose sign the transaction via QR code or file.
- Option 1: Via QR code
① On Sparrow Wallet: Click [Show QR] > Sparrow Wallet displays the unsigned transaction data as a QR code format.
② Touch the scanning icon in the top right corner of the Keystone main page and scan the QR code displayed by Sparrow.
③ Touch [Sign] > Enter the password > Tap [Confirm] and authorize the transaction. The device will then show the signed transaction data in QR code format.
④ Click [Scan QR] on Sparrow Wallet, then scan the QR code shown on Keystone.
OPTIONAL: If your computer device has no camera, you can use the Keystone to scan the QR code displayed on screen and then generate the signed transaction file onto a microSD card. The message to export to the microSD card should display underneath the QR code displayed on the device with an underlined text. The specific steps are as follows.
- Option 2: Via file
① Insert the microSD card into PC/Mac.
② Click [Save PSBT] on Sparrow Wallet and save the file in the root directory of the microSD card.
③ Take out the microSD card from PC/Mac and insert it into the Keystone.
④ Touch the "microSD card" icon on Keystone, then find and open the unsigned transaction file.
⑤ Touch [Sign] and enter the password to authorize the transaction.
⑥ Touch [touch here to export the file with microSD] > [Export]. The signed transaction file will be saved to the root directory of the microSD card.
⑦ Take out the microSD card from the Keystone and insert it into your PC/Mac.
⑧ Click [Load PSBT] on Sparrow Wallet, then select and open the signed transaction file.
3. Partially sign with Coldcard
1) Insert the microSD card into PC/Mac.
2) Click [Save PSBT] on Sparrow Wallet and save the file in the root directory of the microSD card.
3) Take out the microSD card from PC/Mac and insert it into the Coldcard.
4) [Ready To Sign] > Select transaction file.
5) Confirm and export partially signed multisig transaction file to the microSD card.
6) Take out the microSD card from the Coldcard and insert it into your PC/Mac.
7) Click [Load PSBT] on Sparrow Wallet, then select and open the signed transaction file.
4. Broadcast with Sparrow Wallet
Make sure the Sparrow Wallet has connected to the node successfully.