Sanctum has introduced a 2-of-3 multi-signature security mechanism for each wallet in its mobile applications, bringing the commonly used security models of institutions and encrypted treasuries to ordinary users.

This update is based on Squads Smart Account Program. For each Sanctum wallet, 3 encrypted keys stored in different locations are configured. Users need at least 2 of these keys to approve transactions, which means that even if an attacker obtains one key, they cannot access or transfer the assets in the wallet alone.

This update also addresses another common issue with self-hosted wallets: the loss of private keys. If the sole key controlling the wallet is lost or compromised, funds may be permanently lost. The multi-signature setup of Sanctum allows users to use the remaining two keys to replace the compromised or lost key.

Sanctum CEO FP Lee stated that the goal is to combine the security of institutional-level multi-signature arrangements with the convenience of daily hot wallets.

How does the 2-of-3 multi-signature of Sanctum work?

Each Sanctum wallet starts with 3 keys, each of which is stored separately and protected by different authentication methods.

Device Key is stored on the user's mobile phone and is protected by biometric authentication methods such as Face ID, Touch ID, or Android. On iOS, Sanctum utilizes Apple's Keychain; on Android devices, Android Keystore is used instead. This key remains on the original device and is not synchronized to cloud backups.

Cloud Key is stored in the iCloud account of user iOS or in the Google Drive of user Android. The Sanctum application will retrieve this key when signing transactions. Apple and Google manage the encryption keys for their respective services, which means they technically have access to the stored keys.

Recovery Key is managed by Turnkey and is stored in a secure isolation zone that runs on AWS Nitro. Users access this key by sending a 6-digit verification code to their email. Each verification code expires after 5 minutes, and only 3 attempts are allowed.

Device Key and Cloud Key are active signatories in daily transactions. Recovery Key can also sign transactions, but cannot initiate them on its own. When users need to replace lost or compromised keys, they mainly use it together with the remaining active keys. Sanctum indicates that its server never stores or accesses these three keys.

What if a certain key is cracked?

This arrangement disperses security across three independent locations. In the event of a stolen phone, a compromised Apple or Google account, or a phishing-affected email account, only one key would be theoretically exposed, and this key alone cannot authorize transactions. If a user loses their phone, they can log in to a new device and generate a new Device Key. Subsequently, Cloud Key and Recovery Key will approve the replacement process and remove the old key from the multi-signature setup.

Users can also replace the exposed Cloud Key or Recovery Key without creating a new wallet. The remaining two keys will be replaced accordingly, while the wallet address, balance, and transaction history will remain unchanged.

However, this arrangement does not eliminate all security risks. If an attacker obtains two of the keys, they can still transfer funds. Sanctum It is recommended to use a recovery email different from the one associated with Apple or Google accounts to prevent a single compromised account from exposing both Cloud Key and Recovery Key. Users can also add a second recovery email to make their wallet have a 2-factor of-4 multi-signature setup. In this way, even if two keys are lost, access can still be maintained through the remaining keys.

Increasingly frequent crypto hacker attacks are raising the bar for security requirements.

As the security update for Sanctum is released, the number of attacks faced by cryptocurrency holders, exchanges, and even hardware wallet users is increasing. On October 29, 2026, Binance was attacked, with approximately $6.34 billion in funds transferred across 10 blockchains, making it the largest cryptocurrency theft case on record. Earlier than that, Bybit lost around $1.5 billion in February 2025, while Bitget suffered an attack worth $387.5 million in September 2026.

Individual wallet holders are also facing increasingly complex threats. In October, a supply chain attack involving Southeast Asian Ledger distributors CryptoBilis is said to have affected approximately 300 wallets, resulting in an estimated loss of up to 93.2 million US dollars. It is alleged that attackers embedded malicious chips in Ledger devices to extract users' mnemonic phrases. These incidents highlight the limitations of relying on a single private key, even when it is stored in a hardware wallet.

Sanctum believes that multi-signature security provides a stronger alternative by eliminating the single points of failure that make traditional wallets vulnerable. The company now hopes to extend its existing focus on Solana revenue products to the field of encrypted hosting as well.

The updated Sanctum Wallet is now available for use on iOS, Android, and Solana Seeker devices.

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