What is multisig? How to set it up with hardware wallets

Multisig lets you distribute control over cryptocurrency across several independent keys. In a 2-of-3 setup, any two signatures are enough to send funds, so you can still use your funds if you lose access to one key. Anyone who obtains just that one key cannot move the funds alone.

Below, we will set up a Bitcoin wallet in Electrum, back up its configuration and test signing. For Ethereum, we will use Safe{Wallet}. Both examples keep private keys on a Ledger Nano X, Ledger Flex and Trezor Safe 7, but wallet creation, transaction verification and recovery work differently.

The desktop instructions use Electrum 4.8.2. Trezor Safe 7 support was added in version 4.8.0, so earlier versions are unsuitable for this combination of devices. Menu items and buttons refer to the English interfaces of Electrum and Safe{Wallet}.

What is multisig, and what does it protect against?

With a conventional single-signer hardware wallet, you can restore access to your funds using the seed phrase, also called a recovery phrase. The device stores private keys and signs transactions without passing those keys to the software on your computer. Anyone who obtains the recovery phrase can recreate the keys on a compatible device; if the wallet uses a passphrase, they will also need that additional password.

Multisig, short for multi-signature, requires several signatures to authorize a transaction. A setup is described as “m of n,” where n is the total number of keys and m is the number of signatures needed to spend funds. Our example uses three independently generated keys. Transfers can be signed by the Nano X and Safe 7, the Flex and Safe 7, or both Ledger devices.

A 2-of-3 setup lets you access your funds if one device breaks or one recovery phrase is lost. If a key is stolen, the attacker still needs another key to move the funds. Protection against a vulnerability shared by several devices depends on how you distribute keys across manufacturers, while protection against fire or theft at a single location depends on where you store them.

If two signers approve the same substituted address or malicious contract call, the transaction will go through. Each signer must therefore verify the transaction independently, checking the address and parameters on the device and using independent sources of information.

Ledger Nano X, Ledger Flex and Trezor Safe 7 in a 2-of-3 setup

This guide uses two Ledger devices and one Trezor. The Nano X has physical buttons and a compact display, while the touchscreens on the Flex and Safe 7 make long addresses and transaction details easier to review. Exactly what you can see depends on the firmware, app and connection method.

Using devices from different manufacturers reduces your reliance on shared software and hardware. For routine signing in this example, you can use the Safe 7 and one Ledger, keeping the second Ledger at a separate location as a backup signer.

If you substitute a different model, check its compatibility with the software and network. A device suitable for Bitcoin multisig does not necessarily support signing in Safe for Ethereum, and the process for adding its key may differ.

Which setup should you choose: 2-of-2, 2-of-3 or 3-of-5?

We will use 2-of-3 because it lets you keep one key in a separate location without needing it for routine transfers. A 2-of-2 setup suits arrangements where both parties must participate, but reliable backups are especially critical. A 3-of-5 setup may suit shared custody when the additional devices and people responsible for them are justified.

Distribute devices and recovery phrases so that no single location provides access to two independent keys. For example, a Nano X and the Flex recovery phrase in the same drawer already provide enough access for two signatures. A device and its own backup represent one key, although storing them together risks losing both at once.

Choose storage locations that let you access two keys even when you cannot reach the third. If you entrust someone with a key, explain its role in the setup and what they should do if the device is lost.

How multisig differs between Bitcoin and Ethereum

Electrum works with Bitcoin. For Ethereum, we will use Safe, a smart contract account controlled by owner addresses. Both allow a 2-of-3 threshold, but they store this rule differently.

Bitcoin: keys and wallet configuration

In Bitcoin, a script defines the spending conditions. To calculate the addresses for our wallet, the software needs the extended public keys of all three participants, the signature threshold, the script type and the child key derivation rules. Electrum acts as the coordinator: it collects this information, creates a transaction and passes it to the devices for signing.

An extended public key is often referred to generically as an xpub. It allows addresses to be derived, but cannot sign transfers. In Electrum, keys for the type of multisig used here have the prefix Zpub. Back up each complete key exactly as displayed.

For P2WSH addresses, the blockchain initially contains a hash of the script; the script itself is revealed when BTC received at that address is spent. This does not replace a configuration backup containing all the extended public keys. If one key and its xpub are lost with no other way to recover them, the other two keys are insufficient to recreate the wallet addresses.

Ethereum: owners and the threshold in the Safe contract

An ordinary Ethereum address has no “two signatures out of three” setting. This requires a smart contract account, such as Safe, which stores the owner addresses and signature threshold. Each hardware wallet controls a separate owner address, while funds are held at the Safe address itself.

You can change the Safe owners by collecting the required signatures, without moving all the assets to another account. Contract deployment and transaction execution incur network fees, and the contract, enabled modules and interface introduce risks alongside those of the devices. This guide uses a standard three-owner setup without additional modules or spending allowances.

What you need before you start

• A Ledger Nano X and Ledger Flex with different recovery phrases. Update their firmware and install the Bitcoin and Ethereum apps on each device through Ledger Wallet. Our Ledger Nano X and Ledger Flex guides cover the initial setup.
• A Trezor Safe 7 with its own backup. To follow both parts of this guide, you need universal firmware with Ethereum support. By default, Safe 7 offers a backup of 20 words in the SLIP39 format during setup. Record the actual format of your backup, since BIP39 and SLIP39 recovery procedures differ. The initial steps and backup check are covered in our Trezor Safe 7 setup guide.
• A computer and USB data cables. We will connect all three devices by cable. For Electrum 4.8.2, the website lists Windows 10 version 1809 or later, macOS 11 or later, and Linux with the appropriate dependencies.
• An up-to-date copy of Electrum from the official website. Version 4.8.2 was current when this guide was prepared. Choose the installer for your operating system and verify its signature.
• Separate storage for the configuration. You need a secure storage medium for a copy of the wallet file and a way to save or print the complete public keys accurately.
• Funds for testing. Set aside a small amount of BTC for several transfers and fees, plus ETH to create the Safe and make a test transfer. Gas must be paid in the native coin of the network you use.

If you use a passphrase, the additional password that determines your wallet keys, choose it before exporting xpubs or selecting Ethereum addresses. Always open the wallet with that same passphrase: any other value, including an empty one, produces different keys. For your first practice run, you can use separate test wallets without passphrases.

Part 1. Set up Bitcoin multisig in Electrum

We will create a native SegWit P2WSH multisig wallet with a 2-of-3 threshold. Saleem Rashid’s 2018 guide explains the same principle, but the screenshots and firmware limitations it describes are outdated. The current Ledger integration registers a wallet policy during signing to define the threshold and participating keys.

In Electrum 4.8.2, the Ledger plugin cannot display multisig addresses on the device, although the Nano X and Flex can do so through other compatible software. Here, we will display the receiving address on the Safe 7 and separately verify every key in the configuration.

Step 1. Download Electrum and verify its signature

1. Open electrum.org and download the installer for your operating system. Click Signatures next to it and save the signature file in the same folder.
2. Download the signer’s public key using the link on the Electrum website, import it into GPG and check its full fingerprint against an independent source. For the ThomasV key, the import command is gpg --import ThomasV.asc. The procedure and sources for cross-checking are provided on the Electrum download page and in the official signature verification instructions.
3. With GPG installed, open a terminal in the download folder and run the verification command. For the Windows Installer package for version 4.8.2, use gpg --verify electrum-4.8.2-setup.exe.asc electrum-4.8.2-setup.exe. For another package, substitute its exact filenames.
4. Confirm that the signature is valid and belongs to the key you checked, then install Electrum. A GPG warning that trust in a key has not been established is different from an invalid signature. If signature verification fails, do not run the file.

A checksum can detect a corrupted file, but matching the hash on the same website does not establish the software’s authenticity if that website has been compromised. On Linux, you may also need Ledger and Trezor udev rules so that the application can access the USB devices.

Step 2. Launch Electrum and configure the connection

On its first launch, Electrum configures the connection to the Bitcoin network before you create a wallet. You do not have to select a server manually: automatic connection is sufficient for the initial setup. These opening screens may not appear if the application is already configured.

1. Launch Electrum. If the Electrum Terms of Use window appears, read the terms and click I Accept to continue.
2. The Network Configuration screen has two optional settings: Use Proxy for connecting through a proxy and Select Electrum Server for choosing a server manually. This guide uses an automatic connection, so leave both boxes unchecked and click Next. Electrum will select a server; you do not need to enter an address or port.
3. To specify a server yourself, check Select Electrum Server on the previous screen and click Next. In the Server window, choose Connection mode → Manual server selection. In the Server field, enter the domain name or IP address and port specified by your chosen server. For SSL/TLS, the full entry takes the form domain:port:s. Port 50002 is common, but check the server’s actual settings. To select a server from the list, right-click it and choose Use as server. Check your entry and click Next.
4. After network configuration, the wizard for creating or opening a wallet file will appear. Prepare the devices as described in the next step, then create the multisig wallet. Wait for synchronization before checking the balance or making a test transfer.

Leave Use Proxy disabled unless you already have a configured proxy. The Connect only to a single server mode is intended for your own fully trusted server: Electrum will not cross-check block headers with other servers in this mode. For an ordinary public server, use Auto-connect or Manual server selection.

Once the wallet is created, you can review these settings through Tools → Network → Server or the network icon in the bottom-right corner. If the connection fails, check your internet access and proxy settings. To restore automatic mode, choose Connection mode → Auto-connect. Wait for the initial synchronization to finish, since the balance and history may be incomplete until then. Our guide to running a Bitcoin node with Start9 explains how a wallet, an Electrum server and a full node work together.

Step 3. Prepare the devices for connection

1. Close Ledger Wallet, Trezor Suite and any other applications that might be using the devices’ USB connections.
2. Connect only the Ledger Nano X, unlock it with its PIN and open the Bitcoin app. When adding keys, connect one device at a time to avoid mixing up the two Ledger devices.
3. Keep your notes with the device names nearby. In the following steps, we will add the public key and its identifier alongside each name.

Step 4. Create a 2-of-3 wallet

1. In the wallet creation wizard, enter a filename, such as multisig-ledger-trezor, and click Next. If Electrum has already opened an existing wallet, first choose File → New/Restore to create a separate file.
2. Select Multi-signature wallet. Set the total number of participants to three and the number of required signatures to two.
3. Make sure the setup is 2-of-3, then proceed to the first key. Electrum calls each participant with a separate key a cosigner; we will use the term “signer” in this guide.

With the same keys, derivation paths and script type, the order in which you add signers does not change the addresses: Electrum sorts the public keys when constructing the multisig script. Still, record the device names so that you know which key belongs to each device.

Step 5. Add the Ledger Nano X key

1. For the first key, select Use a hardware device. After the scan, choose the connected Nano X.
2. Choose native segwit multisig (p2wsh). On the Bitcoin network, this wallet’s addresses will begin with bc1q.
3. Keep the derivation path m/48h/0h/0h/2h, which defines how keys for the intended account are derived from the master key. The h notation and apostrophes are equivalent: m/48'/0'/0'/2'. This path follows BIP48 for the first native SegWit multisig account on Bitcoin mainnet.
4. If the Ledger asks for permission to export the public key, review the request on the device and approve it. Once Electrum receives the key, the wizard will move to the next signer.

The p2wsh-p2sh and p2sh options produce different addresses. We use P2WSH for the new wallet in this guide. When restoring an existing wallet, reproduce its original script type and derivation path, even if they differ from those shown here.

Step 6. Add the Trezor Safe 7 key

1. Disconnect the Nano X, connect the Safe 7 by cable and unlock it. For the second signer, choose Cosign with hardware device, then select Trezor Safe 7 from the detected devices.
2. If prompted to establish a secure THP connection, confirm it on the Trezor. When Electrum displays Enter 6-digit pairing code, enter the six-digit code shown on the device. This is a one-time pairing code, separate from your PIN and recovery phrase.
3. If you use a passphrase, open the correct wallet by choosing to enter the passphrase on the Trezor itself. The standard wallet uses an empty passphrase.
4. Check that the same path, m/48h/0h/0h/2h, and P2WSH script type are selected. Confirm the necessary prompts on the device and wait for the wizard to move to the third signer.

Step 7. Add the Ledger Flex key

1. Disconnect the Trezor, connect the Flex, unlock it and open Bitcoin.
2. Add the third key through Cosign with hardware device, selecting the Flex. Check the path m/48h/0h/0h/2h and approve the export of public data if the device requests it.
3. If Electrum reports a duplicate key, stop and check whether the Nano X and Flex were restored from the same recovery phrase and passphrase. The setup must contain three independent keys.

If a signer is elsewhere, you can add them using an extended public key exported for the agreed derivation path. Verify that key with its owner over an independent communication channel: an xpub from an unknown sender could add someone else’s key to your wallet.

Step 8. Protect the wallet file with a password

1. On the final Wallet Password screen, enter a password in the Password and Confirm Password fields, then click Finish. Electrum encrypts the file with this password. It protects the local wallet copy and does not replace device PINs or recovery phrases.
2. Once the wallet opens, go to Wallet → Information. Check for Wallet type: 2of3 and Script type: p2wsh.

A file created using only hardware signers does not contain their private keys. It holds public keys and wallet settings that can reveal addresses and transaction history, so protect it from unauthorized access as well.

Step 9. Save the configuration and a backup

1. In Wallet → Information, open each signer’s tab and copy the complete Master Public Key, Derivation path and BIP32 root fingerprint. The fingerprint has eight hexadecimal characters. It helps distinguish keys, but does not replace the complete xpub.
2. Label each key’s details with the device name: Nano X, Safe 7 or Flex. The tabs may appear in a different order from the one in which you added the devices, so identify each device by its data rather than its tab number.
3. Also record Bitcoin mainnet, the 2-of-3 threshold, the P2WSH script type and the sortedmulti key-sorting rule. After verifying the address in the next step, add the first receiving address as a reference.
4. Choose File → Save backup, select a backup folder and save a copy of the file on a separate storage device. Check that you can open the copy and have its password.
5. Keep several copies of the configuration away from your working computer. You can store a copy alongside each key’s backup, protecting the information from unauthorized access. Copy or print long xpubs rather than transcribing them by hand.

A configuration without private keys cannot move funds, but it reveals addresses and financial history. Do not share it in public chats or upload it to a third-party website for a “wallet check.” You can also save a descriptor, a text description of how the addresses are constructed, but the recorded parameters and complete public keys are sufficient for basic recovery.

How to match a Zpub to the xpub in a Ledger policy

Electrum and Ledger may display the same extended public key with different prefixes. To compare the full key, also save its equivalent xpub representation in advance, leaving the original Zpub unchanged in your backup.

1. In Electrum, open View → Show Console and switch to the Console tab.
2. For each of the three public keys, run convert_xkey("your complete Zpub", "standard"), replacing the text in the first pair of quotation marks with the complete Zpub from your configuration. The command changes the encoding while preserving the public key data; it does not require private keys or recovery phrases.
3. Save the resulting complete xpub alongside the original Zpub and its corresponding fingerprint and path. When registering the policy on the Ledger, compare keys in the same encoding and check each signer’s path and fingerprint.

Do not replace a Zpub with an xpub in Electrum’s recovery wizard simply to change the prefix: the encoding can affect which script type the software selects. When recreating the wallet in step 12, use the original Zpubs you saved.

Step 10. Verify the address and receive a small amount of BTC

1. Connect the Safe 7 and open the correct wallet. On the Receive tab, enter a description in the Description field, such as Multisig test, then click Request. You can leave Requested amount blank. Electrum will display the receiving address. If the Addresses tab is hidden, enable it through View → Show Addresses.
2. On the Addresses tab, find the address shown under Receive, right-click it and choose to display it on the Trezor. Review the entire address on the Safe 7 and compare every character with Electrum.
3. Compare all three extended public keys and paths with the data you obtained from the respective devices. On another trusted computer, recreate the wallet from this verified data using the procedure in step 12 and compare the same address. Simply copying all the data from a potentially infected computer would reproduce any substitution that had already occurred.
4. Record the verified first address in your configuration, send a small amount of BTC to it and wait for network confirmation. Test an outgoing transfer before depositing the main balance.

If you try to display this address on the Nano X or Flex, Electrum will report that the feature is available only for standard wallets with Ledger. Verify the address on the Safe 7 as described above. To display it on a Ledger as well, you can use Sparrow, discussed below.

Step 11. Sign a transfer with two devices

1. On the Send tab, paste the recipient address, enter a small test amount and click Pay…. Review the settings in the fee window and click Preview to open the transaction before signing. Use your own verified BTC receiving address for this test.
2. Connect the Safe 7 and one Ledger, or connect them when prompted. The Bitcoin app must be open on the Ledger. In the transaction window, click Sign. If Electrum asks for the unavailable third device, cancel that specific prompt to continue with the available keys.
3. The first time this multisig policy is used, the Ledger will ask you to register it. The policy specifies the threshold, wallet type and signers’ keys. Check the 2-of-3 threshold and all three keys against your saved configuration, using the xpub equivalents prepared above for the Electrum Zpubs.
4. After checking the policy, review the recipient address, amount and fee on the Ledger and approve the signature. When Electrum requests the Safe 7, connect or unlock it, verify the same details and add the second signature. The order in which Electrum requests devices may vary.
5. If the transaction remains partially signed after using the first device, connect the second and click Sign again. Once enough signatures have been collected and the Broadcast button is available, send the transaction to the network.
6. Check that the transaction appears on the History tab and wait for confirmation. This tests the full process: receiving BTC, collecting two signatures and spending funds.

The registered policy lets the Ledger check whether the change belongs to the same multisig wallet. Change is the BTC left over from the amount the wallet uses to fund a transfer: after paying the recipient and the fee, it returns to an address you control. If you approve a policy containing someone else’s keys during registration, the device will check change against that policy. Verify the participating keys beforehand.

Electrum keeps the Ledger policy registration credentials in application memory. After a restart or a new connection, the prompt may appear again, so check the threshold and keys every time against your own configuration.

How to transfer a partially signed transaction

If the devices are stored in different places, you can collect signatures on different computers using the same wallet configuration. A PSBT, or partially signed Bitcoin transaction, stores the information needed for signing along with any signatures already added.

1. After the first signature, choose Share → Save to file in the transaction window and save the partially signed transaction.
2. On the second computer, open the same multisig wallet. Load the file through Tools → Load transaction → From file, connect the second device and add its signature.
3. Check the address, amount and fee again on the second device. Once there are enough signatures, click Broadcast or transfer the completed transaction to the computer that will broadcast it.

A PSBT does not contain recovery phrases, but it can reveal addresses, amounts and other wallet information. Transfer it over a secure channel and sign the same transaction without changing the recipient or amount. The Nostr Cosigner plugin also supports exchanging transactions between signers; a file transfer is sufficient for the initial setup.

Step 12. Check the configuration, backups and every device pair

Recreating the configuration checks that the public keys and settings were saved correctly. A recovery phrase check confirms that the words were recorded accurately, while test transfers verify that every signer works. Complete all three checks before depositing the main balance.

1. Recreate the configuration. Without deleting the working file, use File → New/Restore to create a wallet under a different name and select 2-of-3. Choose Use a master key for the first signer and Enter cosigner key for the others, entering all three saved public keys in Zpub format. This creates a watch-only wallet. After synchronization, compare the first address, several subsequent addresses and the transaction history.
2. Check the Safe 7 backup. On the unlocked device, open Settings → Security → Check backup, tap Continue, enter the PIN again and select the number of words. Enter the words on the Trezor itself and wait for the result. Single-share Backup requires one phrase; Multi-share Backup requires enough shares to meet its recovery threshold.
3. Check each Ledger backup. In Ledger Wallet, open My Ledger for the relevant device and install the official Recovery Check app. To check the base recovery phrase, unlock the Ledger with the primary PIN and no active passphrase. If you previously opened a wallet with a temporary passphrase, restart the device. Launch Recovery Check, select the phrase length and enter the words on the Ledger itself. Make sure Recovery Check confirms that the phrase is correct, then repeat the check on the other device.
4. Check the passphrase separately. Verifying the base recovery phrase does not confirm that you saved the additional password correctly. Open the intended passphrase wallet again and compare its public data with the configuration.
5. Test transfers with all three pairs. Use small amounts to test Nano X + Safe 7, Flex + Safe 7 and Nano X + Flex, allowing for fees. After successful tests, move the devices and backups to their chosen storage locations.

The procedures are described in the Trezor Safe 7 instructions and the Ledger Recovery Check instructions. For these checks, enter recovery phrases only on the devices.

What to do if a device fails, is lost or its key is compromised

If a device breaks but its backup remains secure, restore the same key on a compatible hardware wallet. If you use a passphrase, open the wallet with it, then export the extended public key for the recorded path and compare it with the configuration. Device failure alone does not mean the key has been compromised.

If a device is lost or stolen, or a recovery phrase may have been exposed, create a new multisig wallet with a new, independent key replacing the missing one. Verify the new configuration and address, then use two available keys from the old wallet to transfer the funds. Restoring a compromised phrase on a new device does not revoke access from anyone who already has it.

If two devices are unavailable, restore at least one of those keys so that you once again have two usable signing keys. The replacement device must support the backup format: BIP39 and SLIP39 are not interchangeable. Recreating the addresses also requires the saved public data for every signer.

Electrum supports software recovery through I already have a seed → Options, where you can select BIP39 seed or SLIP39 seed. In this emergency scenario, reproduce the original passphrase, P2WSH script type and path for each key; SLIP39 Multi-share Backup requires enough shares. Entering a recovery phrase on a computer takes that key outside the protection of the hardware wallet, so replace it after recovering the funds. Use the devices for routine backup checks. Our article on what happens if a wallet manufacturer shuts down covers backup and third-party software compatibility.

Electrum or Sparrow for this wallet?

Electrum remains the main application for this guide. You can use Sparrow as another coordinator for the same standard configuration. It supports Ledger wallet policies and displaying multisig addresses on the device, which is useful for checking addresses on the Nano X and Flex.

You can import a copy of the Electrum file or recreate the wallet from the complete extended public keys, paths, threshold and script type. Before using it with funds, compare several addresses with Electrum to confirm that the configuration is correct. You can then save a descriptor as an additional backup if needed.

Part 2. Set up Ethereum multisig with Safe{Wallet}

Safe{Wallet} is an interface for managing a Safe smart contract account. On Ethereum, this account can hold ETH, ERC-20 tokens such as USDT and USDC, and NFTs. The method described here does not work for BTC or USDT on Tron. On each supported EVM network, separately verify whether the Safe contract is deployed and check its configuration.

In the standard confirmation flow, owners sign a proposal off-chain, so these signatures do not require gas. Network fees are paid when deploying the Safe and executing a transaction. In our example, one of the owners will pay them and will therefore need ETH at their personal address on the same network.

For the first test, we will make a simple transfer of a small amount of ETH, without batch calls or dApp interactions. We will then cover the differences for tokens. If you choose to test on a layer 2 network, use that same network throughout deployment, funding, hash verification and execution.

Step 1. Record the three owners’ Ethereum addresses

1. For the Nano X and Flex, open or add Ethereum accounts in Ledger Wallet. Choose to receive ETH for each account, open Ethereum on the corresponding device and display the address on its screen.
2. For the Safe 7 with universal firmware, open the Ethereum account in Trezor Suite, choose to receive funds and display the full address on the device.
3. Copy all three addresses and label them Nano X, Flex and Safe 7. Record the account used and its derivation path if the account details show it; one recovery phrase can produce many Ethereum addresses.
4. Make sure the addresses are different and that each can be reproduced on its own device. Send a little ETH on the chosen network to the Ledger address you will use to create the Safe, to cover deployment costs.

The owner addresses control the Safe, but funds are held at the Safe address itself. If you fund an owner’s personal address, spending those funds will depend solely on that owner’s key.

Step 2. Connect a Ledger to Safe{Wallet}

1. Close Ledger Wallet and Trezor Suite to free up the devices’ USB connections. Open app.safe.global, check the domain and bookmark the page.
2. Open the wallet connection menu and choose the built-in Ledger connection. Connect the Nano X or Flex by cable, unlock it and open Ethereum. In the browser, grant the site access to that specific USB device.
3. From the account list, select the address you recorded for this Ledger. If it is missing, check the Ledger Live/Ledger Wallet derivation mode and make sure you have opened the wallet with the correct passphrase. Do not substitute another address from the list for the verified one.
4. After connecting, compare the selected owner address in Safe{Wallet} with your records. Connect using the hardware wallet; there is no need to enter a recovery phrase on the website.

For off-chain signatures, Safe recommends connecting Ledger and Trezor directly. We use that method here because connecting through MetaMask may change how data is signed and displayed. If the browser cannot detect the device, check the cable and USB permissions, and close other applications using the connection.

Step 3. Create a Safe with a 2-of-3 threshold

1. Select Create new account, give the Safe a name and choose Ethereum as the network. The name helps you distinguish accounts; the address and network identify the Safe.
2. When adding signers, check the proposed address of the connected Ledger. Add the other two device addresses from your verified list. If you connected the Nano X, the other owners will be the Flex and Safe 7; if you connected the Flex, they will be the Nano X and Safe 7.
3. Give the signers clear labels and set Threshold: 2 out of 3. Check all three full addresses and make sure there are no duplicates.
4. On the summary screen, check the network, owners, threshold and estimated fee. For this guide, choose immediate deployment with Pay now, so that the contract exists on the network before you fund it.
5. Review the prompt on the Ledger and approve the deployment transaction. Wait for confirmed contract deployment on the network, after which Safe{Wallet} will display the account address. Do not proceed to funding before deployment is confirmed.

Step 4. Verify the contract and fund the Safe

1. Open the Safe settings and the owners and threshold section. Confirm that the three recorded addresses are listed and that execution requires two signatures.
2. Check the confirmed deployment transaction and contract address in the chosen network’s block explorer. In the section for reading the Safe proxy contract, find getOwners() and getThreshold() and run these queries. They should return your three recorded addresses and the number 2. Compare these results with the settings in Safe{Wallet}.
3. Record the Safe address, network, contract version and owner addresses. After verification, send a small amount of ETH to the Safe and wait for it to appear in the balance.
4. Check that the personal address of the owner who will execute the test transfer holds ETH. In the next step, this address will pay the fee for the outer transaction.

If you send funds on a network where the Safe has not been deployed, recovering access may require a separate contract deployment, which is not always possible. For the initial setup, use only a verified network and an already deployed account.

Step 5. Create and verify an ETH transfer

1. In Safe, choose New transaction → Send funds, enter a verified recipient address, select ETH and specify a small amount. For this practice transfer, use an address you control and have already checked.
2. On the review screen, open the transaction details and Raw data. For a simple, single ETH transfer, to should contain the recipient, value the amount in wei, data the empty value 0x, and operation the value 0, meaning a normal CALL. One ETH equals 10^18 wei.
3. Check the Safe address, network and nonce, the sequence number of this Safe transaction. If the interface proposes a batch call or DELEGATECALL instead of the expected simple transfer, go back and find out why the transaction structure has changed.
4. Review the simulation results if available: which assets will move, who will receive them, and whether any permissions or account settings will change. Verify these parameters before approving anything on the device.

When confirming a Safe proposal, an owner normally signs a structured EIP-712 message containing the terms of the proposed transaction. The device may display its fields, hashes or both. Review all available information; if a fully decoded description is unavailable, verify the hashes using the procedure below.

A hash is calculated from transaction data, so a correctly calculated hash can still represent a malicious call. First check what the transaction will do, then verify its hashes.

How to verify hashes with Safe Utils

1. On another trusted device, open OpenZeppelin’s Safe Utils. Select the same network and enter your Safe address.
2. For the first signature, use Manual Input if the proposal is not yet available through the Safe Transaction Service. Copy every field from the transaction details: to, value, data, operation, nonce, safeTxGas, baseGas, gasPrice, gasToken and refundReceiver. Check that they match what you intend to do; do not guess missing values.
3. Click Calculate Hashes. The service will calculate the domain hash, message hash and Safe transaction hash. Retrieving data through the API is convenient for an existing proposal, but you still need to verify its parameters.
4. When signing begins on the Ledger or Trezor, compare the specific values displayed by the device. Compare domain hash with domain hash, message hash with message hash, and safeTxHash with Safe transaction hash. These are different hashes and are not expected to match one another.
5. Compare the complete hash values. If they differ, or you cannot identify which value the device is showing, reject the request and investigate.

Perform the independent calculation on another trusted device and check the source of the input data as well: two windows on one computer can both be compromised by the same malware. The procedure is detailed in the Safe Utils documentation and Safe’s hardware wallet verification guide. For local calculations, you can use safe-tx-hashes-util.

Step 6. Collect two signatures and execute the transaction

1. Connect the first owner’s wallet, open the prepared transfer and start signing. On the device, check the available fields and hashes as described in the previous section, then approve. The transaction should appear with its first confirmation under Transactions → Queue.
2. Disconnect the active wallet in Safe{Wallet} and connect the second device, selecting Ledger or Trezor. Unlock it, open the correct passphrase wallet if applicable, and choose the recorded owner address. The Ethereum app must be open on the Ledger.
3. In Queue, open the same transaction with the same nonce and hash. Do not create a separate transfer. Verify the parameters and displayed values on the second device, then approve the second signature.
4. Once the interface shows two confirmations, choose Execute. If it offers Sign & Execute, the last confirmation is combined with execution. Verify both the inner Safe transaction and the outer network transaction; do not assume there will always be two separate signing prompts.
5. On the executor’s device, check the final call to your Safe and the network fee. This is the outer Ethereum transaction that submits the approved transaction and signatures to the contract. Its hash differs from the hash of the inner Safe proposal.
6. After network confirmation, check the transaction status, confirm that the recipient received the ETH and verify the change in the Safe balance. Two confirmations in Queue do not mean the funds have been transferred: the transaction must also be executed.

What changes for USDT, USDC and other tokens?

After a successful ETH test, you can test an ERC-20 token transfer. Fund the Safe on the same network and select the token under Send funds. Create a proposal, collect two confirmations and execute it. Before signing, account for the token transfer differences described below.

For a standard ERC-20 transfer, the to field contains the token contract address, while the recipient and token amount are encoded in data as a transfer call. The value field is usually zero because the call does not send ETH. Check the contract address, recipient and amount, accounting for the token’s decimals, then verify the hashes.

If the proposal calls approve instead of the expected transfer, you are granting another address permission to spend tokens. Assess dApp interactions, batch transactions and unfamiliar contracts separately. A successful ETH test does not establish that those operations are safe.

Lessons from the Bybit attack

On February 21, 2025, a substituted transaction was signed while Bybit was using Safe{Wallet}. According to Sygnia’s investigation, malicious changes to web interface resources allowed the transaction contents to be replaced and control over the assets to be taken. Multiple hardware signatures did not prevent a transaction whose actual effect differed from what the signers expected.

Checking the contract call, calculating hashes independently and simulating the outcome where possible can help signers detect such a substitution before approval. Verify every transaction regardless of how many signers are involved.

How to replace a Safe owner or change the threshold

1. Generate an independent key on the new device and verify its Ethereum address on the device screen. Record the address and save the backup.
2. In the Safe settings, open the signers and threshold section. Select the owner whose key was lost or compromised, choose the replacement option and paste the new verified address.
3. Review the resulting owner list and make sure the threshold is still correct. For our setup, there should be three addresses and two required signatures after the replacement.
4. Verify the proposed settings change and its transaction hash, collect confirmations from two owners whose keys you can access, then execute the transaction.
5. After network confirmation, use the block explorer to check that the new owner address has been recorded in the contract. Update your records and make a test transfer using the new key.

Adding an owner or changing the threshold requires the number of confirmations set by the current threshold. To move to 3-of-5, add and verify the new owners, then set the threshold to three signatures. If you already have fewer keys than the current threshold requires and no alternative recovery method was configured in advance, you cannot lower the threshold.

What to save for Safe recovery

• The Safe address and the exact list of networks on which its contract is deployed.
• All owner addresses, the required threshold and the contract version, so that you can check them when reconnecting.
• Device recovery phrases, backup formats and passphrases. To reproduce a specific Ethereum address, also record the account and derivation path.
• For pending proposals, save the parameters and signatures already collected, or be prepared to sign them again. The Safe service’s queue is stored separately from executed transactions on the blockchain.

Restore access to the keys of at least two owners and connect the existing Safe on the correct network. You do not need to create a new account: the current owners and threshold are stored in the contract, so there is no need to reconstruct them from xpubs as with Bitcoin.

If the web interface is unavailable, the contract continues to exist. You can interact with it through another compatible interface or the Safe CLI. This requires a separate setup, including verification of the network, contract address, nonce and transaction data. Without recorded addresses and accounts, recovering access is harder even if you still have the recovery phrases.

Can Ledger Enterprise Multisig replace Safe{Wallet}?

Ledger Enterprise Multisig also uses the Safe protocol and offers Clear Signing, which displays supported transactions in a readable form on the device. Its device requirements differ from those for a regular Ledger connection in Safe{Wallet}.

Of the devices used in this guide, the Flex supports signing in Ledger Enterprise Multisig. The Nano X can connect to the service to view balances and requests, but cannot sign its transactions. You therefore cannot collect two signatures with our Ledger devices through it. For this mixed setup including the Safe 7, we use Safe{Wallet}.

Common multisig setup mistakes

• Using the same recovery phrase on two devices. Exposure of that phrase can compromise two signers at once, even if they use different derived addresses.
• Leaving public keys out of the Bitcoin wallet backup. Save the complete configuration, test that you can recreate it and do not rely solely on the file on your working computer.
• Keeping two independent keys in one place. Account for the locations of devices, recovery phrases and passphrases so that the contents of one storage location cannot provide two signatures.
• Checking an address only in the software. For receiving and sending, use the verification available on the devices. During the initial setup, verify the participating keys as well.
• Approving a policy with unknown keys. The name “2 of 3 Multisig” does not prove that it contains your three keys. Compare their full details with your own configuration.
• Sending funds to an owner’s personal address instead of the Safe. Before making a deposit, verify the contract address and the network on which it is deployed.
• Comparing a hash without checking the call. First establish what the transaction sends, who receives it and which permissions it changes, then compare the hashes.
• Collecting signatures without completing the transfer. After collecting signatures, execute the transaction using Execute in Safe or broadcast it using Broadcast in Electrum, then check the confirmed result on the network.
• Never testing the backup signer. Periodically verify that it works by making a small transfer, and repeat the test after significant firmware or software changes.
• Opening a different passphrase wallet or account. Compare the public key or Ethereum address with your saved records before changing settings or concluding that funds are missing.

When to deposit the main balance

After setup, you should have three independent keys, verified backups and a clear recovery procedure. For Bitcoin, you also need a complete configuration that you have already used to recreate the same addresses. For Safe, you need verified owners, a verified threshold and the address of the deployed contract on the intended network.

Deposit the main balance after successful test transfers, including one with the backup signer. Leave a short recovery guide for yourself or someone you trust, so that you do not have to reconstruct the process from memory years later. For more on backups, see our articles on recovery phrases and how to store them.