Here is an article explaining why the Blockstream Jade (not being used as stateless) requires online access to complete setup. Apparently, there is a way to run your own oracle pin server, but havent figured that out yet.

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Whoops, copied the original note and forgot the actual explanation on blockstream lol:

https://help.blockstream.com/hc/en-us/articles/9639949755673-How-does-Blockstream-Jade-s-oracle-enforced-PIN-protection-work-