Sparrow Wallet
Self-Custody / MultisigSparrow Wallet is a Bitcoin desktop wallet focused on security, privacy, and usability. Supports full node connection, hardware wallet integration, PSBT, coin control, and advanced privacy features like Whirlpool.
Quick Verdict
With a Custody Score of 5.4/10, Sparrow Wallet is ranked #1 of 1 among self-custody / multisig providers. Its strongest category is Fee Transparency and its weakest is Insurance.
Analysis
Score Breakdown
The Custody Score is a weighted average across 8 criteria, each rated 1-10.
| Criterion | Score | Weight | Weighted |
|---|---|---|---|
| Security | 7.5 | 20% | 1.50 |
| Insurance | 1 | 15% | 0.15 |
| Regulatory | 1 | 15% | 0.15 |
| Fee Transparency | 10 | 10% | 1.00 |
| Track Record | 6.5 | 15% | 0.98 |
| Withdrawal Flexibility | 9.5 | 10% | 0.95 |
| Reporting & Audit | 2 | 10% | 0.20 |
| Counterparty Diversification | 9 | 5% | 0.45 |
| Total | 100% | 5.4 |
Key Features
- ✓Full node connection
- ✓Hardware wallet integration
- ✓PSBT support
- ✓Coin control
- ✓Whirlpool privacy
- ✓Multisig support
Fee Breakdown
| Setup Fee | Free (open-source) |
| Annual Custody Fee | None |
| Transaction Fee | Network fees only |
| Withdrawal Fee | Network fees only |
| Notes | Completely free and open-source. No account needed. |
Security Details
Key Management
Desktop wallet with hardware wallet support
Cold Storage
100% (when used with hardware wallet)
SOC Compliance
N/A
Penetration Testing
No
Incident History: No incidents
Insurance Coverage
Coverage
None — self-custody software
Carrier
N/A
Details
Software wallet. No insurance. Full user responsibility.
Regulatory Status
Licenses
- N/A — open-source software
Open-source project. No company registration needed.
Pros & Cons
Pros
- Best Bitcoin desktop wallet UX
- Full node connection for verification
- Advanced privacy tools (Whirlpool)
- Excellent multisig support
- Completely free and open-source
Cons
- Desktop only — no mobile app
- Requires technical knowledge
- No company support
- Not beginner-friendly
- Software-only — needs hardware wallet for cold storage
How Sparrow Wallet Compares
Top self-custody / multisig providers ranked by Custody Score.
No other providers in the self-custody / multisig category.