How to Set Up a Multi‐Signature Wallet with Ledger Live (2024 Guide) - turneresdras/Ledger-Wallet-Tips-2022 GitHub Wiki

Multi-signature (multisig) wallets add an extra layer of security by requiring multiple approvals for transactions. While Ledger Live doesn’t natively support multisig setups, you can use your Ledger device with third-party wallets to create a robust multisig solution.

This guide covers how to set up a 2-of-3 multisig wallet using Ledger hardware wallets and compatible software.

Please download the last update of Ledger Live Application:

1.Ledger Live for Windows 10/11

2.Ledger Live for MAC

3.Ledger Live for Android

🔐 What is a Multi-Signature (Multisig) Wallet?

A multisig wallet requires multiple private keys to authorize transactions. Common setups include:

• 2-of-2 (Two people must approve every transaction).
• 2-of-3 (Two out of three keys are needed—ideal for families or businesses).
• 3-of-5 (Used by large organizations for treasury management).

Why Use Multisig with Ledger?

✅ Enhanced security – No single point of failure. ✅ Shared custody – Ideal for businesses, couples, or inheritance planning. ✅ Protection against theft/loss – Even if one key is compromised, funds stay safe.

📌 How to Set Up a Multisig Wallet with Ledger

Since Ledger Live doesn’t support multisig natively, we’ll use Electrum (for Bitcoin) or Gnosis Safe (for Ethereum & EVM chains).

Option 1: Bitcoin Multisig (Using Electrum + Ledger)

Step 1: Install Electrum & Connect Ledger

1. Download Electrum (electrum.org).
2. Open Electrum and select “Standard Wallet” > “Use a hardware device”.
3. Connect your Ledger Nano S/X and select it in Electrum.

Step 2: Create a Multisig Wallet

1. Go to Wallet > New/Restore.
2. Enter a name and select “Multi-signature wallet”.
3. Choose “2-of-3” (or your preferred setup).
4. Select “Use a hardware device” for each key (you’ll need multiple Ledgers or co-signers).
5. Save the wallet file and backup the multisig descriptor.

Step 3: Add Co-Signers

• Each participant must export their public key (XPUB) from their Ledger.
• Share these securely (via encrypted channels).
• Reconstruct the wallet in Electrum using all XPUBs.

Step 4: Send & Approve Transactions

• Any transaction requires 2 out of 3 signatures.
• One person drafts the transaction, exports it, and the second signer approves it on their Ledger.

Option 2: Ethereum & EVM Multisig (Using Gnosis Safe + Ledger)

Step 1: Set Up a Gnosis Safe

1. Go to gnosis-safe.io and click “Create Safe”.
2. Choose Ethereum (or another supported chain).
3. Select “2-of-3” (or customize).

Step 2: Connect Ledger as a Signer

1. Click “Connect Wallet” and select “Ledger”.
2. Confirm the connection via your Ledger device.
3. Add other signers (can be MetaMask, Trezor, or another Ledger).

Step 3: Fund & Use the Safe

1. Send ETH or tokens to your Gnosis Safe address.
2. Any transaction requires 2 out of 3 approvals.
3. Signers must confirm via their Ledger when approving transactions.

🔧 Alternative Multisig Solutions

Wallet	Supported Chains	Best For
Electrum	Bitcoin	Advanced users
Gnosis Safe	Ethereum, EVM chains	DAOs, businesses
Specter DIY	Bitcoin	Self-hosted setups
Caravan	Bitcoin	Testing & education

⚠️ Security Considerations

• Never share private keys – Only exchange public keys (XPUBs).
• Use different Ledgers for each key (avoid single-device multisig).
• Store backups securely – If 2-of-3 keys are lost, funds are irrecoverable.
• Test with small amounts first before moving large sums.

🚀 Final Thoughts

While Ledger Live doesn’t directly support multisig, combining Ledger hardware wallets with Electrum or Gnosis Safe provides enterprise-grade security. Whether for personal inheritance planning, business funds, or DAO treasuries, multisig ensures no single person can move funds alone.

💡 Pro Tip: Start with a 2-of-3 setup and test transactions before full deployment.

Have questions? Ask below! 🔐