Quick answer
Multisignature custody requires more than one approved key or signer before a transaction can execute.
What is Multisignature?
A multisignature wallet divides spending authority across multiple keys and sets a threshold, such as two of three signers. It can reduce single-key failure but introduces coordination and recovery requirements.
The useful way to approach this term is to separate its definition from the assumptions people often attach to it. In crypto, the same word can appear in a protocol rule, a user interface, a market-data label, or a marketing claim. Check which layer the explanation is describing.
Why does multisignature matter?
Multisignature setups can protect treasuries, teams, and family funds from one lost or compromised key. The policy is only useful if signers, devices, backups, and recovery procedures are maintained.
Concrete example
See it in a real situation
A two-of-three wallet needs signatures from any two designated devices before sending funds. One lost device does not automatically make the treasury unrecoverable.
Common misconceptions
What this term does not mean
- Multisignature does not mean the keys are held by a regulated bank.
- A threshold policy can still fail if enough signers are compromised or the transaction is misread.
Related terms
Sources and further reading
Definitions are written for education and checked against the sources below where relevant. A source can explain a protocol or rule without endorsing every product built around it.