A multisignature (multisig) wallet requires more than one private key to authorize a cryptocurrency transaction. This adds an extra layer of security by reducing the risk of theft or loss. For example, a multisig wallet could require 2 out of 3 authorized users to approve any transfer. They’re commonly used by crypto businesses, exchanges, or organizations managing large amounts of crypto, and even in decentralized autonomous organizations (DAOs) to ensure trust and security.