Multisig (Multi-Signature)

Multi-signature (multisig) is a Bitcoin security model that requires multiple private keys to sign a transaction before it can be broadcast. In an m-of-n configuration, m signatures out of n total keys are required. For example, 2-of-3 multisig means any 2 of 3 keyholders must sign. In lending, Unchained Capital uses 2-of-3 multisig where the borrower holds one key, Unchained holds one, and a third-party key agent holds the third. This prevents any single party from unilaterally moving the Bitcoin. However, multisig requires human coordination to execute. Settlement, liquidation, and collateral return all require manual key-signing ceremonies.