Bitkey’s Inheritance Feature Simplifies Self-Custody For Bitcoin Users

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 than ever. Bitkey, the self-custody wallet built by Block, Inc., has introduced a new inheritance feature designed to address this challenge. Launching widely in January 2025, this feature provides a simple, secure way for customers to pass their bitcoin to loved ones without compromising self-custody.

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

Simplifying Legacy Transfers

The concept behind Bitkey’s inheritance solution is straightforward. Users or benefactors can invite a designated beneficiary via the Bitkey app. The process is seamless: an invite link is sent to the beneficiary, who accepts it to create an inheritance plan. Importantly, beneficiaries cannot access the benefactor’s wallet and are not informed of the bitcoin amount they stand to inherit.

A key safeguard is a six-month waiting period. If a beneficiary initiates a claim, the benefactor receives regular notifications throughout this period. This allows the benefactor to cancel fraudulent or accidental claims, ensuring their funds remain secure.

Karsh emphasized the simplicity at the heart of this innovation: “Self-custody solutions today often involve piecing together multiple products or leaving complicated instructions. We’re removing those barriers and making this process accessible to anyone, even if they’re not technically savvy.”

Building On Bitkey’s Core Values

When Bitkey was first developed, it was built around a single principle: simplicity. Recognizing the challenges posed by traditional seed phrase models, Bitkey introduced an innovative approach known as multi-signature, or multi-sig. This system splits custody among three keys: one stored in the hardware wallet, one in the Bitkey mobile app, and one on Block’s server. Recovery requires just two of these keys, ensuring users retain control—even if Block were to go out of business.

This multi-sig architecture extends to the inheritance feature, ensuring security and peace of mind. “It’s all about making bitcoin easy to understand, use, and recover,” Karsh noted. “We’ve thought deeply about the frictions people face, especially when moving their bitcoin off exchanges, and we’re addressing them head-on.”

Empowering The Next Billion Bitcoiners

Bitkey’s inheritance solution is just one of many features designed to bring bitcoin to a wider audience. The company’s goal is ambitious: to onboard the next billion people into self-custody. With a focus on ease of use and accessibility, Bitkey is positioning itself as the go-to wallet for mainstream users.

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,” said Karsh.

Self-Custody

In addition to Bitkey, several other self-custody solutions have emerged to cater to the diverse needs of bitcoin users. Hardware wallets like Trezor and Ledger have long been staples 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.

Beyond Inheritance

Bitkey doesn’t stop at inheritance. The wallet offers a range of features to simplify self-custody, including a transaction reporting tool to track gains or losses and partnerships with exchanges like Coinbase to facilitate buying and selling. At no point do users relinquish custody of their bitcoin, ensuring complete control.

Operating in over 90 countries, Bitkey continues to expand its offerings to meet the needs of bitcoiners worldwide. As Karsh explained, “We’re just trying to enable bitcoin to grow and succeed, and this is one of the primary ways to help consumers do that. Be your own bank in the most self-sovereign way possible.”

A Secure Future For Bitcoin

The launch of Bitkey’s inheritance feature marks an important step forward in self-custody. By addressing one of the most pressing concerns in the bitcoin community—how to ensure assets are preserved for future generations—Bitkey is helping to cement bitcoin’s status as a multi-generational asset.

With simplicity and security at its core, it is paving the way for a future where self-custody is accessible to everyone. As Karsh aptly said, “This is about building a product that lasts—not just for today, but for generations to come.”