Step-by-step guide to setting up and using Squads multisig on Solana. Learn how to create a multisig vault, manage transactions, and secure your team's funds with Squads v4.
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If you're managing funds with a team on Solana — whether it's a DAO treasury, a project's token reserves, or shared trading capital — a multisig wallet is not optional. It's essential. A single compromised private key should never be able to drain your entire treasury.
Squads is the leading multisig solution on Solana, securing over $10B in assets. This guide walks you through everything from creating your first multisig to executing complex transactions.
A multisig (multi-signature) wallet requires multiple parties to approve a transaction before it executes. Instead of one person having full control over funds, you set a threshold — for example, 2-of-3 means any two out of three keyholders must approve.
With a regular Phantom or Solflare wallet, one compromised seed phrase means total loss. Phishing attacks, malware, social engineering — there are countless ways a single key can be stolen. A multisig means an attacker needs to compromise multiple independent keys simultaneously.
Squads v4 (also known as Squads Protocol) is an audited, open-source multisig program deployed on Solana mainnet. Key properties:
Go to and connect your Solana wallet. Squads supports , , , and most major wallets.
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Open the KOL TrackerMake sure you're on the real Squads site. Bookmark it and never access it through search engine links — phishing sites that mimic Squads do exist.
Click "Create Squad" and configure:
After creation, your Squads vault has a unique Solana address. Send SOL to this address first (you'll need SOL for transaction fees), then transfer any tokens you want to secure.
Important: The vault address is different from any of the signer addresses. When someone sends funds to the multisig, they send to the vault address — not to any individual member's wallet.
Use Solscan to verify that your vault address holds the correct balances. You can also verify the multisig program ID to confirm you're interacting with the real Squads protocol and not a malicious clone.
Any member can propose a transaction:
Go to your Squad dashboard
Click "New Transaction"
Choose the transaction type:
Fill in the details (recipient, amount, etc.)
Submit the proposal
Once proposed, other members see the pending transaction in their dashboard:
If a transaction looks suspicious or incorrect, members can reject it. If enough members reject (meeting the rejection threshold), the transaction is cancelled and cannot be executed.
For high-value operations, enable a time lock. This adds a mandatory waiting period between the last approval and execution. If a member's key is compromised and used to approve a malicious transaction, the time lock gives other members a window to reject it.
Recommended time locks:
Create multiple vaults under one multisig for organized management:
Each vault has its own address and can hold different assets.
Set up spending limits so routine transactions don't require full multisig approval:
Squads supports interacting with Solana DeFi protocols directly from the multisig:
This means your treasury can earn yield without moving funds to a single-signer wallet first.
For token issuers, Squads can hold the mint authority, freeze authority, and update authority of your SPL token. This is critical for trust — a token where a single person controls the mint authority is far riskier than one where a 3-of-5 multisig controls it.
| Team Size | Recommended Threshold | Use Case |
|---|---|---|
| 2 people | 2-of-2 | Maximum security, risk of lockout |
| 3 people | 2-of-3 | Good balance, one key can be lost |
| 5 people | 3-of-5 | Resilient, handles two compromised keys |
| 7+ people | 4-of-7 or 5-of-9 | Large DAOs, maximum redundancy |
Plan for these scenarios before they happen:
Setting the threshold too low: A 1-of-3 multisig is essentially a single-signer wallet with extra steps. If your goal is security, the threshold must require multiple independent approvals.
Not testing first: Before sending large amounts, create a test multisig with a small SOL balance. Practice creating, approving, and executing transactions. Make sure every signer knows how to use the interface.
Losing access to enough keys: A 3-of-5 multisig where three signers lose their keys means the funds are permanently locked. Ensure signers have proper backup procedures for their individual wallets.
Using the multisig address for airdrops/claims: Some airdrop mechanisms require signing a message, which a multisig cannot do in the traditional way. Check compatibility before using your multisig address for claim-eligible activities.
Ignoring member changes: When a team member leaves, immediately initiate a signer rotation. Don't leave departed members as active signers.
Squads is the dominant multisig on Solana, but alternatives exist:
For most teams, Squads is the right choice. It's audited, battle-tested, and has the widest ecosystem support. For a fuller head-to-head — including when Realms or a manual setup makes more sense — see our best Solana multisig wallets comparison.
Setting up a Squads multisig takes 10 minutes. Recovering from a compromised single-signer wallet takes forever — if recovery is even possible.
If you're managing any meaningful amount of funds on Solana as a team, Squads should be your first infrastructure decision, not an afterthought. Combined with good wallet security practices and proper key management, a multisig dramatically reduces your attack surface.
Start with a test vault, get comfortable with the approval workflow, and then migrate your real treasury. Your future self will thank you when the next wave of phishing attacks hits and your funds stay exactly where they should be.
Squads is a multisig (multi-signature) wallet and smart-account platform on Solana for teams and individuals who want shared, policy-controlled custody. Instead of one key controlling funds, a multisig requires a set number of approvers (for example 2 of 3) to sign a transaction before it executes.
A multisig removes the single point of failure of one private key: no individual can move funds alone, and losing one key doesn't lose the wallet. It's standard for treasuries, DAOs, and teams, and increasingly used by individuals who want extra protection for large holdings.
Create a Squad, add the member wallet addresses that will be signers, and set the approval threshold — how many signatures are required. From then on, transactions are proposed, approved by the required number of members, and then executed on-chain.
The threshold is how many of the configured members must approve a transaction for it to go through — for example "2 of 3" means any two of three members must sign. A higher threshold is more secure but less convenient; choose based on your team size and risk.
Multisig is a well-established security model and is widely used for Solana treasuries. As with any smart-account platform, security also depends on the underlying audited programs and on members keeping their individual keys safe. Configure a sensible threshold and keep signer keys on separate, secure devices.
Many DAOs pair Squads with Realms: a council multisig on Squads handles day-to-day operations while token holders vote on major decisions through community governance. Our Solana DAO tools and governance guide walks through combining the two, and our governance voting guide covers how to actually cast a vote once a DAO is live.