Would geographically separated parties be able to pass signing information like in a PSBT? Could frost 'shards' be used to reconstitute 1 of the keys in a standard multisig? If yes to both this would have massive potential to replace Bitgo (which sucks) for companies.

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Yes you will be able to do remote P2P signing in the future. Yeah you can also have a FROST key inside a script multisig. Absolutely agree that this is prime for institutional custody, but we're building for us hardcore bitcoiners first!