Isn't there a worry that one of the 3 multisig keys is stored on Square's servers?

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that’s the security model

IT IS USED TO MAKE BACKUPS EASIER.

THE COIN CANNOT BE STOLEN EVEN IF THAT KEY IS COMPROMISED.

YOU MAKE A GOOD POINT. IT GIVES THE MASSES MULTISIG SECURITY WITHOUT WORRYING ABOUT THE COMPLEXITY OF IT

so is this similar to the multisig model of Casa but tied to this hardware?