Bitcoin Wallet Ledger Adds Support for PSBTs, Multisig

The hardware wallet maker released its new Bitcoin application, allowing users to enjoy more complex wallet functionalities.

Ledger has launched the latest version of its Bitcoin application, adding support for partially-signed bitcoin transactions (PSBTs), data Merkleization, and new wallet policies, the company said in a statement. The update enables users to create secure multisignature setups with their Ledgers and for Taproot use cases to come in the future.

“In order to reach a billion users, it is imperative that we make the technology both easier to use and more robust, and to do this we must give users the tools to be sovereign individuals, in control of their assets,” the statement said.

Ledger hardware wallets require users to install specific applications to use their cryptocurrency of choice. The Bitcoin app enables the Ledger Nano to sign bitcoin transactions offline and engage with the user’s desktop software wallet. It can interface with Bitcoin Core, privacy-focused Wasabi Wallet, and Ledger’s own Ledger Live, among others.

In adding support for PSBTs and wallet policies based on output script descriptors, Ledger can now “define, work with, and create workflows for wallets with complex policies that might involve multiple parties (like multisig wallets), and to stay interoperable with software and hardware tools from different vendors,” per the statement. And the addition of data Mekleization, along with Merkle proofs, empowers the usage of PSBTs by increasing efficiency and enabling the wallet maker to work with large amounts of data objects without storing them in memory.

The Paris-based hardware wallet maker also recently added support for the Taproot Bitcoin upgrade. Since November 15, users have been able to send and receive Taproot transactions. With the new Bitcoin application version, Ledger sets the groundwork for Taproot script spending, which the company expects to implement over the next six months.

Founded in 2014, Ledger is a hardware wallet manufacturer that serves retail and institutional clients in 200 countries. In June, the company raised $380 million, giving it a unicorn startup status at a $1.5 billion valuation.

In July 2020, Ledger suffered a severe data breach, compromising the personal information of over 1 million customers, including name, phone number, and email address. More than 200,000 people also had their home addresses exposed. Scammers were still targeting customers over one year after the incident.