Block announces preorders for Bitkey bitcoin wallet
Block’s self-custody bitcoin wallet uses three keys to secure bitcoin
Block co-founder Jack Dorsey | Frederic Legrand – COMEO/Shutterstock modified by Blockworks
Preorders for Block’s self-custody bitcoin wallet Bitkey launched across the world on Thursday.
According to a press release, the wallet can be preordered in 95 countries, with shipping set to start in early 2024.
“Bitkey includes a mobile app, hardware device and a set of recovery tools in case the customer loses the phone, their hardware, or both,” the release said.
It uses three keys to secure bitcoin in the wallet, though a customer can use any two of those keys to access and change security settings, launch a recovery or transfer bitcoin. The app acts as one key, and the hardware device acts as a second key. The final key is on the Bitkey server, and is the only one the company has access to.
The Bitkey wallet also allows users to set an optional daily spending limit on their phones. This feature utilizes the mobile key in conjunction with the server key to co-sign transactions up to the set daily limit. The intent is to provide security and convenience, enabling users to spend safely on the go without making it necessary to carry their hardware device everywhere. This system ensures that even if someone gains access to the user’s phone, they cannot access all of the user’s funds.
Read more: Block’s Cash App bitcoin revenue up, investment holdings now above breakeven
The hardware gives “an extra layer of security to co-sign money movements (based on a customer-set limit); and enables recovery when customers lose their phone.”
Bitkey’s global beta launched back in June. Beta testers were able to test out the hardware device and mobile app.
At the time of the beta launch, it also announced a Coinbase partnership. Users were able to buy bitcoin on Coinbase and initiate the transfer through Coinbase Pay.
Cash App, which is also in Block’s portfolio, will also integrate its product into the Bitkey app. Cash App was launched by Square — now Block — back in 2013. In August, Cash App noted that the amount of bitcoin sold to customers during the second quarter of 2023 jumped up to $2.39 billion. This marked a year-over-year increase of 34%.
When customers receive their wallets, they’ll be able to transfer bitcoin from both Cash App and Coinbase though the ability to transfer bitcoin from other places and the buy and transfer features will be rolled out in a “staggered” approach.
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