We have spent the last several years unlocking access to Bitcoin services like intuitive limit orders and automated saving plans so that Europeans everywhere, not just the tech-savvy, can benefit from the best performing asset of the decade. Today marks a new milestone in that mission, and one we are especially proud of: We are excited to announce that you will now be able to add xPubs (“Extended Public Key”) to your 21bitcoin wallet via Two-Factor Authentication. This allows you to buy Bitcoin and send them to self-custody in seconds while being secure and fully compliant with the “Travel Rule”.
With the European MiCAR and Travel Rule Regulation, we faced a compliance challenge to maintain privacy and feasibility for self-custodying Bitcoin. But we did what we always do: we combined technology, financial expertise, and navigated complex regulatory requirements to bring hassle-freeself-custody to you. We were able to improve the experience and security for you by implementing Two-Factor Authentication and digital Signature for Wallet Verification and dispensing other methods like the “Satoshi Test” that some services use. Not only is this way more simple and transparent, but without all those additional fees, so your gains stay your gains.
We also made self-custody more affordable, offering one of the industries lowest BTC withdrawal fees (~€1, or 1,000 sats) independent of current network fees, which can save you hundreds of euros over time (UTXO Management).
Key advantages for you:
- Affordable and automated self-custody
- your Bitcoin - your way: 21bitcoin provides also a flexible solution for secure 100% cold storage custody before taking Bitcoin into self-custody
- Travel Rule compliant solution that requires no additional costs or effort while increasing security for transactions with Bitcoin.
xPub-support in combination with Auto Wallet Transfer is the next step in 21bitcoin’s sophisticated (self-)custody strategy. By allowing you to send BTC to your own private wallets in an automated and easy way, xPubs and 2FA unlock greater privacy — and with it, greater security in using Bitcoin.
And there’s more to come. Throughout February, we'll roll out new educational materials that are shared in our help center and in our app. As important as it is to us to give you access to secure custody of Bitcoin, it's even more important that you have a good understanding of how it works and what are the tradeoffs. In the coming weeks, we will further roll out Two-Factor Authentication for an even more secure login to the app.
xPubs have been a top ask from you, and for good reason. It’s yet another sign that Europeans are increasingly savvy when it comes to self-securing their Bitcoin wealth. With this new release, we continue to lead the way in making Bitcoin accessible and more secure for everyone by providing the most flexible Bitcoin financial service out there.
What is the Travel Rule?
The Transfer of Funds Regulation, also known as the “Travel Rule,” was introduced to make the handling of cryptocurrencies more secure and transparent. The aim of this regulation is to curb money laundering and the financing of terrorism by collecting and transmitting information about senders and recipients of crypto transactions. This creates a standard comparable to the existing regulations for traditional financial transactions. This regulation is a step towards further integrating cryptocurrencies into the regulated financial market.
What is an xPub?
xPub is an abbreviation for “extended public key”. It is part of the so-called Hierarchical Deterministic Wallet (HD Wallet) and is a public key that is used to generate a series of public Bitcoin addresses. Unlike conventional wallets, which only generate one address, an HD Wallet can generate an infinite number of Bitcoin addresses.
