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I want to maximize security but minimize complexity. Let's say I have large enough sums of BTC that need to be secured into three buckets:

  1. KYC Personal BTC
  2. Non KYC Personal BTC (mined)
  3. KYC Company BTC (maybe uses Lightening/BTC as a merchant for business purposes)

I don't want these commingled for privacy, security, but also accounting and taxation purposes. The goal is to have a 2 of 3 multi sig for each category with a hardware signer for two of the private keys with one hot wallet as the third private key. For Example:

enter image description here

Is it possible for each hardware device to have three distinct (seeds) private keys one for each BTC category? In the scenario above I have two hardware devices to manage and nine private keys that need to be physically secured.

If not then my only option us to have a different hardware signer for each private key for each multisig, for example:

enter image description here

In this case, I still have the same amount of private keys to manage (nine) but now I also have six hardware devices to manage. Seems to be getting out of hand.

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  • You could give this a little love by replacing the figures for texts.
    – Mercedes
    Commented Jun 28, 2023 at 19:58

1 Answer 1

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Is it possible for each hardware device to have three distinct (seeds) private keys one for each BTC category?

Every hardware device that supports HD (hierarchical deterministic) wallets will be able to generate multiple child private keys (and public keys) from a single seed and master private key. Hardware devices generally don't support multiple seeds/mnemonics in parallel. But for what you want to do generating multiple private keys from a single seed is sufficient.

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