Software Wallet Setup in Sparrow

This guide outlines the steps to recover your Software Wallet multisig setup using Sparrow Wallet. Follow these quick steps to regain access to your multisig wallet:

1. Create a New Wallet

   In Sparrow Wallet, start by creating a New Wallet.

   

   Choose the Multi Signature policy type and select Native SegWit (P2WSH) script type. Configure the cosigners with the same number of owners and the signing threshold that matches your Asigna Vault.

   

2. Add Your Software Wallet Click New or Imported Software Wallet to add your Software Wallet account as one of the multisig cosigners. In the Mnemonic Words (BIP 39) field click the dropdown and select the number of words that matches your Software Wallet's seed phrase. Enter your seed phrase and confirm it.

   

3. Set the Derivation Path Enter the derivation path, depending on which Address Type you use in the Asigna Vault.

   

   Address Type	Derivation Path
   Native SegWit (bc1q...)	m/84'/0'/0'
   Nested SegWit (3...)	m/49'/0'/0'
   Taproot (bc1p...)	m/86'/0'/0'
   Legacy (1...)	m/44'/0'/0'

4. Add Other Owners' Wallets To complete the multisig setup, add the Software Wallet accounts of other cosigners. There are 2 ways to do it: 1) You may do it through New or Imported Software Wallet and add each additional owner by repeating the previous steps. However, to do this, the other multisig owners would need to share their wallet seed phrases with you, which may pose a security risk. 2) Use xPub/Watch Only Wallet method. To do this, you need to obtain each owner’s xPub, derivation, and master fingerprint.

   

   

   Each owner must first restore their Software Wallet in Sparrow (the steps are almost identical to the ones described in the guide above — the only difference is that in the Policy Type section, they should select Single Signature option). Once the wallet is added, they can view Settings and share the required information (xpub, derivation, and fingerprint) with you.

   Address Index Must Match for Multisig Import

   When importing a Software Wallet multisig setup using Sparrow Wallet, all owners must use the same address index in their respective wallets.

   For example:

   • If Owner 1 is using account 1, then Owner 2 must also use account 1 in their Software Wallets.

   • Alternatively, both can use account 2, or account 3 — but the index must be the same for everyone.

   ❗️If one Owner uses account 1 and another uses account 3, the multisig setup will not be valid or importable in Sparrow Wallet.

   Make sure to coordinate and agree on the address index before generating an Asigna Vault.

5. Verify the Setup After adding all cosigners, click Apply in Sparrow Wallet. In the Addresses tab check that the first generated address for your multisig setup matches the one displayed in Asigna Vault. If you encounter any issues, please open a support ticket on Discord.

   

   How Address Index Affects Multisig Derivation

   The address index directly affects the derivation path used in the multisig setup.

   For example:

   • If all owners use account 1, the corresponding derivation path will be:

     m/84'/0'/0'/0/0

   • If all owners use account 2, the derivation path will be:

     m/84'/0'/0'/0/1

   • If all owners use account 3, the derivation path will be:

     m/84'/0'/0'/0/2

   And so on.

   👉 Consistency is crucial — all owners must use the same address index to generate matching setup and enable successful multisig import into Sparrow Wallet.