In that case, yes, you can use a singlesig that has utxo's on it as a signer for a multisig.

The reason I said rotate is because your example might've caused confusion or if you have multiple owners (which could be a reason for multisig) and those other owners also know this seed for example.

Just know that you get two different "wallet" instances (public keys)

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For clarity, you are saying that I (as a sole owner of a singlesig wallet) could create a multisig 2 of 3 set up by adding two more wallets while continuing to use my original singlesig as one of the signers? I did not think that was possible. My understanding was that a multisig set up like this needed to start fresh with all new keys so, that’s how I set mine up.

A 2-3 multisig needs 3 seeds (private keys), you can reuse the seed you used for singlesig, as one of the 3 seeds.

Your funds are seperate from eachother, because your singlesig generates a different public key (and thus addresses) than your multisig.

As an example, when you have a 2-3, with 3 seeds, A, B, C... You could switch one seed for another: A, B, D.

This now gives a totally different public key and addresses, so basically a different wallet, while A and B are reused. Note that this is just an example, not that it's smart to do this last example 😂

Playing around with Sparrow wallet helped me a lot to make it all click in my head. Also this tutorial by nostr:npub14uhkst639zvc2trx2nlsvk4yqkjp690zk89keytnzgmq2az0qmnq58ez89

https://youtu.be/8zM_1lOXtBU

Again, I don't know the implementation in BTCPay Server, which might give you a different interface 🙂

Nice nostr:npub1rxysxnjkhrmqd3ey73dp9n5y5yvyzcs64acc9g0k2epcpwwyya4spvhnp8 recently posted a very long Sparrow tutorial, as well, which is taking time to work through.