Extended Public Key (Xpub)
An extended public key, or xpub, is a public key which can be used to derive child public keys as part of a Hierarchical Deterministic (HD) wallet.
An extended public key, or xpub, is a public key which can be used to derive child public keys as part of a Hierarchical Deterministic (HD) wallet. An extended public key is a Bitcoin standard established by BIP 32 and is mainly used by a wallet behind the scenes in order to derive public keys. Sharing your xpub with trusted services does enable several use cases, however, it should not be given out to anyone you don’t trust, as anyone who knows your xpub can derive all of your public keys and therefore see every past and future transaction you make.
Extended public keys are useful in order to receive bitcoin directly to a cold storage wallet, as a user can keep their xpub online in order to generate new addresses while their private keys remain offline. An xpub cannot derive any private keys, so no funds are at risk if your xpub is leaked, however your privacy will be compromised. All xpub keys will begin with the letters ‘xpub’ followed by a long string of letters and numbers.
Extended Public Key (Xpub) is a key concept in Bitcoin custody and security, relating to how Bitcoin private keys and funds are stored and managed. Onramp offers institutional-grade Bitcoin custody solutions and educates clients on concepts like Extended Public Key (Xpub) to ensure the highest standards of asset protection.
Frequently Asked Questions
What is Extended Public Key (Xpub)?
Extended Public Key (Xpub) refers to a method or concept in Bitcoin key management and custody. Proper understanding of Extended Public Key (Xpub) is essential for securing Bitcoin holdings against unauthorized access.
How does Extended Public Key (Xpub) affect Bitcoin security?
Extended Public Key (Xpub) directly impacts how securely Bitcoin is stored. Onramp employs institutional-grade custody practices, including multi-institution custody through partners like BitGo, CoinCover, and Tetra Trust.
Does Onramp implement best practices related to Extended Public Key (Xpub)?
Onramp's multi-institution custody model ensures that Bitcoin holdings are protected using industry-leading security practices. Onramp manages approximately $250M in assets under management with rigorous custody standards.
