When a third party holds a key in a traditional multisig wallet, that key comes with the ability to view the wallet’s full history and balances. Holding a key has always meant having visibility, because the same information that allows someone to sign a transaction also allows them to see every address in the wallet.
The private wallet update breaks that link. Using a new protocol called Chain Code Delegation, Bitkey can hold a key on your behalf, without having the ability to see your transactions or wallet balances, except in very limited circumstances. When Bitkey signs transactions that require our participation—like recovery or if you’ve set a transfer-without-hardware limit— our servers have a momentary view into your transaction and wallet balance but that information is not logged or stored. This makes everyday use of Bitkey more private while keeping recovery and hardware-free transfers simple and secure.
👉 To learn more, see the Bitkey blog.
🔎 Note: If you recently set up your Bitkey wallet, upgraded your device, or completed a Delay + Notify recovery, your wallet already includes the private wallet update—no action is needed.
How to check if your wallet has the private wallet update
Wallets created for the first time, or wallets that have successfully completed a Delay + Notify recovery on app version 2025.21.0 or later include the private wallet update by default.
If you aren’t sure whether your wallet has been updated:
- From the Bitkey app Home Screen, tap the
settings icon
- Scroll down to Advanced
- If you see
Private wallet update, your wallet still needs to be updated. Follow the steps below to Update your wallet.
- If you don’t see that option, either:
- You need to update your app to the latest version.
👉 How do I know if I have the latest version of the Bitkey app? - Or your wallet has already been updated (or was created with the private wallet update from the start). In that case, no action is needed.
- You need to update your app to the latest version.
- If you see
How to update your wallet
You can’t update your wallet if you have any pending transactions. Wait until all transactions have been confirmed before starting the process.
Once all pending transactions have been confirmed:
- From the Bitkey app Home screen, tap the
- Under Advanced, tap
- Review the information screen, then tap Continue to proceed.
- Bitkey will check your wallet balance and the number of UTXOs you have. What happens next depends on your wallet:
-
If your wallet has no balance:
- Tap Confirm and approve with your Bitkey hardware device.
- New keys, a new cloud backup, and a new Emergency Access Kit will be created.
- You’ll see a screen confirming your wallet update is complete.
-
If your wallet has too little balance to cover network fees:
- You’ll see a message in the app explaining that your balance is too low to cover the update fees.
- Tap Confirm and approve with your Bitkey hardware device.
- New keys, a new cloud backup, and a new Emergency Access Kit will be created.
- You’ll see a screen confirming your wallet update is complete.
-
If your wallet has more than 200 UTXOs:
- You’ll need to consolidate your UTXOs before continuing.
- Tap Continue and follow the on-screen prompts to complete the consolidation process.
- You’ll be required to consolidate until you have fewer than 200 total UTXOs.
- Once your consolidation transactions have been confirmed, you’ll return to the update flow at step 3.
- From there, follow the process listed for wallets with funds.
-
If your wallet has funds (and fewer than 200 UTXOs):
- You’ll see an estimate of the network fee for moving your funds from your old wallet to your updated wallet.
- Review the details, tap Send, and confirm with your hardware device.
- New keys, a new cloud backup, and a new Emergency Access Kit will be created.
- You’ll see a screen confirming your wallet update is complete.
-
If your wallet has no balance:
- Tap Confirm and approve that you’d like to update your wallet using your Bitkey hardware device.
🔎 Note: The wallet privacy enhancements do not apply to transactions with partners who may be independently tracking transfers.