Sparrow Wallet v2.5.4 has been released after extensive AI-assisted review and includes multiple security upgrades aimed at reducing users' reliance on external servers such as Electrum. According to Odaily, the update also strengthens Ledger, Keycard, Trezor, Payjoin, PSBT, and multisignature handling, removes Bitcoin Core credentials and other sensitive information from debug logs, restricts existing wallet and backup directory permissions to owner-only access, closes local DNS leakage when using Tor, and improves verification of wallet imports, signatures, downloads, and server responses. The release expands Sparrow Wallet's independent verification of transaction data, hardware devices, and other inputs while reducing dependence on data provided by external servers.