Bitkey Introduces Inheritance Feature for Bitcoin Self-Custody

Bitcoin is increasingly seen as a multi-generational asset, and the need for secure and user-friendly solutions to ensure its legacy is more important

Block, Inc.'s self-custody bitcoin wallet, Bitkey, has announced a new inheritance feature that will allow users to pass their bitcoin to loved ones without compromising self-custody. The feature will be launching widely in January 2025.

According to a press release shared with Bitcoin Magazine on Friday, the new inheritance solution will enable users to invite a designated beneficiary through the Bitkey app. The beneficiary will accept the invitation to create an inheritance plan. Notably, beneficiaries cannot access the benefactor's wallet and are not informed of the bitcoin amount they stand to inherit.

If a beneficiary initiates a claim, the benefactor will receive regular notifications throughout a six-month waiting period, allowing them to cancel fraudulent or accidental claims and ensuring their funds remain secure.

“Bitcoin is a multi-generational asset, and we think Bitkey should be multi-generational, too,” said Jason Karsh, business lead for Bitkey, in the press release. “With this inheritance solution, we offer customers a safe and simple way to pass their assets onto the next generation.”

Bitkey was initially built around the principle of simplicity, aiming to address the challenges posed by traditional seed phrase models. The platform employs a multi-signature architecture, where custody is split among three keys: one stored in a hardware wallet, one in the Bitkey mobile app and one on Block's server. Recovery of funds requires just two of these three keys, ensuring that users retain control even if Block were to go out of business.

This multi-sig architecture extends to the inheritance feature as well, ensuring security and peace of mind for Bitkey users.

“It’s all about making bitcoin easy to understand, use and recover,” Karsh added in the press release. “We've thought deeply about the frictions people face, especially when moving their bitcoin off exchanges, and we're addressing them head-on.”

This new feature also enables customers to set a beneficiary for their bitcoin holdings, offering a level of planning rare in the self-custody space.

“Being able to tell someone you trust that they will inherit your bitcoin — without giving up your self-sovereignty — is a game-changer,” Karsh said.

In addition to Bitkey, several other self-custody solutions cater to the diverse needs of bitcoin users. Hardware wallets like Trezor and Ledger have long been mainstays in the self-custody space, offering offline storage to protect private keys from online threats. Trezor, for instance, also offers a bitcoin-only version for users who prefer dedicated support for bitcoin alone. Bitkey, however, is exclusively focused on bitcoin, ensuring a streamlined and purpose-built experience for bitcoin holders.

Software wallets such as Electrum provide lightweight, open-source options that allow users to maintain control over their private keys without relying on third parties. These solutions demonstrate the importance of personal responsibility in managing digital assets, aligning with the core principles of decentralization and security.