Security alert · Oct 9, 2026: Ledger devices bought from a reseller in Southeast Asia were drained. Buy hardware wallets only from the maker. What to do →

Multisig Setup

Checklist

Ledger multisig with Sparrow: register and sign

Last reviewed: October 2026

TL;DR

The Ledger Nano S Plus is a full multisig signer in Sparrow with Bitcoin app 2.1 or newer. The first time you show an address or sign, you register the wallet: the Ledger shows its name and the three keys, you check them and approve. Sparrow keeps the proof of that approval in its wallet file, so a rebuilt wallet means registering again. Leave Ledger Recover off.

What the Ledger does in this setup

In my 2-of-3 the Ledger Nano S Plus is the cheapest of the three keys. Once the wallet is registered, it checks addresses against your own setup, which makes it one of the two devices I trust for address checks (step 8). My view of the device itself is in the Ledger Nano S Plus review.

What you need

  • A Ledger Nano S Plus initialized with a new 24-word seed (step 4)
  • The Bitcoin app, version 2.1 or newer, installed through Ledger Wallet. The current version is 2.5.1 (September 9, 2026)
  • Ledger Wallet closed before you open Sparrow. Sparrow’s FAQ names a running Ledger app as the first cause of “can’t connect”
  • Your signing computer with Sparrow installed and verified (step 3)

Settings to get right

Ledger Recover: leave it off

Ledger Recover is a paid subscription that splits an encrypted copy of your seed between Ledger, Coincover and EscrowTech. It’s only active if you sign up. In this setup your backup is your own metal plate, and nobody else should hold a copy. If Ledger Wallet offers it, decline.

Passphrase: attach it to a second PIN

If you use a passphrase, set it on the device under Settings → Security → Passphrase and choose Attach to PIN. You get a second PIN: your normal PIN opens the plain wallet, the second one the passphrase wallet. Always unlock with the second PIN before you use the Ledger with Sparrow. Ledger notes that three wrong PIN attempts reset the device, so make sure your seed backup is in order first.

Steps

  1. In the new multisig wallet in Sparrow (step 6), give the wallet a short, recognizable name. The Ledger will show this name.
  2. Unlock the Ledger (second PIN if you use a passphrase) and open the Bitcoin app.
  3. In a keystore tab, click Connected Hardware Wallet, then Import Keystore. Check that the derivation path reads m/48’/0’/0’/2′ and that the master fingerprint matches your notes.
  4. Finish the wallet and back up the descriptor (step 7).
  5. Open the Receive tab and click Display Address. Because this is the first time, Sparrow asks the Ledger to register the wallet. The Ledger shows the wallet name, a summary of the 2-of-3 rule and the three keys. Check each key’s fingerprint against your notes, then approve.
  6. The Ledger now shows the address. Compare it with Sparrow, every character. It scrolls, so take your time.
  7. To sign (step 9), click Sign with the Bitcoin app open. The Ledger shows the wallet name with the transaction. Check the address and amount before you approve.

Since Bitcoin app 2.5.0 (July 2026), the registration screen describes a simple multisig in plain words instead of a raw template, which makes the summary easier to check. The keys are still shown in full.

How the registration works, and why you sometimes repeat it

The BitBox02 stores your multisig on the device. The Ledger doesn’t. Its Bitcoin app keeps no list of wallets. When you approve a registration, it hands Sparrow a 32-byte code (an HMAC) that is calculated from your seed and covers that exact setup, including the name. Sparrow saves the code in the wallet file and sends it with every later address or signing request. The Ledger checks the code and knows you approved this setup before. A setup with a swapped key doesn’t match the code, so a compromised computer can’t slip one past it without a new approval on the screen.

A few things follow from that:

  • Rebuilt the wallet from the descriptor? The new wallet file has no code, so you register again, and check the keys again. That’s normal after a new signing laptop.
  • Renamed the wallet in Sparrow? The name is part of the code, so the old one no longer fits. Sparrow 2.5.4 and newer then registers the wallet again on its own and you approve it on the device.
  • Nothing to delete. There’s no list on the Ledger to clean up. An approval can’t be taken back on the device either, which is one more reason to check the keys before you approve.
  • Name rules. The Ledger accepts 1 to 64 plain ASCII characters. Keep it short anyway; it’s the name you’ll look for on a small screen.

Buying a Ledger

Buy only from Ledger’s own shop or from Amazon.com itself (“Ships from and sold by Amazon.com”), never from a reseller. After devices from one reseller were drained in October 2026, that’s the rule on this site; see the Ledger reseller attack. Do the tamper check when it arrives.

Buy from Ledger · Buy on Amazon

Common mistakes

  • Leaving Ledger Wallet running, so Sparrow can’t reach the device.
  • Unlocking with the normal PIN when the wallet uses a passphrase. Sparrow then sees a different fingerprint.
  • Approving the registration without checking the three fingerprints.
  • Skipping registration, then wondering why the Ledger refuses to sign.

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