Guides / Glossary / Watch-only wallet
Glossary

Watch-only wallet: seeing balances without the power to spend

A wallet that tracks addresses without any private keys, so it can show balances and history but cannot sign.

Education only

Definition. A wallet that tracks addresses without the private keys, so it can show balances and history but cannot spend.

How it works

A watch-only wallet is built from public information only: the descriptor or extended public keys of the company wallet. It can derive the same addresses as the real wallet, look up the coins sent to them and show the balance and transaction history. It can even prepare unsigned payments as PSBTs. What it cannot do is sign, because it has no private keys.

Most desktop wallet applications can import a descriptor as watch-only. Pointing that application at the company's own node, rather than a public server, keeps the wallet's addresses private.

Why it matters for a company

Separation of duties is a basic finance control. The people who keep the books should be able to see what the company holds without being able to move it. A watch-only wallet gives the finance team, the outsourced bookkeeper or a board member a live view of the treasury without handing them a signing device.

It also helps at year end. Auditors need evidence that the company controls the bitcoin in its accounts. A watch-only balance on its own shows only that coins sit at certain addresses. Auditing standards on both sides of the Atlantic ask for evidence that is relevant and reliable, so auditors typically also want proof of control, such as a signed message or a small test transaction, alongside the watch-only view.

Example only, fictional. A company's bookkeeper runs a watch-only wallet on the office computer. Each month end, they export the transaction list with dates, amounts and fees, convert each to pounds at the recorded rate, and reconcile it to the ledger before the board pack goes out.

Common mistakes

Sources

Primary sources only. Each link was checked on 9 November 2026. Rules change, so confirm the current version with your adviser.

  1. Bitcoin developer documentationGlossary: one bitcoin equals 100,000,000 satoshis
  2. Bitcoin BIPsBIP 380: Output script descriptors, general operation (wallet backups and exports)
  3. PCAOBAS 1105: Audit evidence
  4. FRCISA (UK) 500: Audit evidence
Education, not advice.

This is general information and education only. It is not financial, investment, tax, accounting, legal or regulatory advice, and it is not a recommendation to buy, sell or hold bitcoin or any other asset. It does not take account of your circumstances or those of your company. You must obtain your own official professional advice to confirm this information is correct before acting on it.

Rules change. This information is correct to our understanding at the last-reviewed date, but it may be incomplete or out of date, and official sources take precedence. Bitcoin is volatile. A company that buys it could lose some or all of the money it puts in.

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