Multi-signature escrow is now officially live on Nexus for all Monero transactions. After an extended development and beta testing period, the feature is available to all users as an opt-in alternative to standard escrow. This article explains how multi-sig escrow works in practice, how to enable it as a buyer or vendor, and why the security properties it offers represent a meaningful advancement in trustless commerce.
How the 2-of-3 Multisig Flow Works
When both buyer and vendor have opted into multi-sig, the checkout process generates a shared escrow address collaboratively using public keys from all three parties: buyer, vendor, and the marketplace. Funds sent to this address can only be released by a transaction signed by at least two of the three private keys. None of the parties can see or derive the other parties' private keys -- only the cryptographic output (the shared address and its redemption scripts) is shared.
In a standard successful transaction: the buyer sends XMR to the escrow address, the vendor receives confirmation of deposit and dispatches, the buyer confirms receipt, both parties sign the release transaction, and funds arrive in the vendor's wallet. The marketplace key is never used, and the marketplace never touches the funds. If a dispute arises, the marketplace reviews evidence and co-signs a release to either buyer or vendor, acting as an arbitrating third key. The 2-of-3 structure ensures that collusion between any two parties is required for any outcome -- preventing unilateral theft by any single party including the marketplace itself.
Setting Up Multi-Sig as a Buyer
Buyers do not need to configure anything in advance. When a vendor's listing is multi-sig enabled, the checkout page automatically presents the multi-sig option. The buyer's browser generates a session keypair, the public key is submitted to the escrow coordinator, and the deposit address is computed on the fly. The buyer's private key is displayed once and must be saved securely -- it is needed to co-sign the release transaction at the end of the trade. Store it in a PGP-encrypted file or a hardware wallet's signing interface. Do not store it in a text file or browser bookmark.
Enabling Multi-Sig as a Vendor
Vendors enable multi-sig through their store settings. Once enabled, all new listings will offer multi-sig at checkout. Vendors can choose to require multi-sig (disable standard escrow) or offer it as an option alongside standard escrow. Vendor keys are generated from the platform's key derivation system tied to the vendor's account -- no manual key management is required on the vendor side. Comprehensive setup documentation is linked from the vendor dashboard. For background on why Monero is the implementation priority, see the XMR tips guide. General escrow questions are covered in the FAQ.