Taproot is an enhancement to the Bitcoin network allowing the use of more efficient signatures (under some circumstances), better scripting and a new address type called pay-to-taproot (P2TR).

A Taproot address is of the format bc1pmzfrwwndsqmk5yh69yjr5lfgfg4ev8c0tsc06e (Note the prefix bc1p) which is similar (but different) to a native segwit address.

You can read more about the details here:

Taproot is due to be activated from block 709632. This site will tell you when.

Initially, Bitpanda Custody will not support the generation of a Taproot addresses (P2TR). This means there will not be the ability to use the advanced features of these scripts. However, Bitpanda Custody already offers much of the potential features (like mult-sig, threshold rules and advanced rules) such that these features add little benefit to Bitpanda Custody users.

Additionally, you will not be able to send from a Bitpanda Custody wallet to a Taproot (P2TR) address. The TrustVault app, TrustVault Web and API will prevent you from sending to this address type.

We will continue to monitor the use of P2TR addresses and will make a decision if customers demand the ability to send to P2TR addresses in the future.

If you'd like to discuss anything, please feel free to contacting us.