diff --git a/packages/cardano-services/test/StakePool/TypeormStakePoolProvider/util.test.ts b/packages/cardano-services/test/StakePool/TypeormStakePoolProvider/util.test.ts
index acce639583d..c2fd5c21fd8 100644
--- a/packages/cardano-services/test/StakePool/TypeormStakePoolProvider/util.test.ts
+++ b/packages/cardano-services/test/StakePool/TypeormStakePoolProvider/util.test.ts
@@ -4,7 +4,7 @@ import { validateFuzzyOptions, withTextFilter } from '../../../src/StakePool/Typ
 describe('TypeormStakePoolProvider utils', () => {
   describe('validateFuzzyOptions', () => {
     it('throws if value is not a valid JSON encoded string', () =>
-      expect(() => validateFuzzyOptions('test')).toThrow('Unexpected token e in JSON at position 1'));
+      expect(() => validateFuzzyOptions('test')).toThrow(/Unexpected token/));
     it('throws if value is not an object', () =>
       expect(() => validateFuzzyOptions('"test"')).toThrow('must be an object'));
     it('throws without threshold', () =>
diff --git a/packages/e2e/src/factories.ts b/packages/e2e/src/factories.ts
index ab6899c0796..97e95745aa8 100644
--- a/packages/e2e/src/factories.ts
+++ b/packages/e2e/src/factories.ts
@@ -204,7 +204,8 @@ keyManagementFactory.register('inMemory', async (params: any): Promise<CreateKey
           accountIndex: params.accountIndex,
           chainId: params.chainId,
           getPassphrase: async () => Buffer.from(params.passphrase),
-          mnemonicWords
+          mnemonicWords,
+          purpose: params.purpose
         },
         dependencies
       )
@@ -220,7 +221,8 @@ keyManagementFactory.register('ledger', async (params: any): Promise<CreateKeyAg
         accountIndex: params.accountIndex,
         chainId: params.chainId,
         communicationType: CommunicationType.Node,
-        deviceConnection
+        deviceConnection,
+        purpose: params.purpose
       },
       dependencies
     );
@@ -238,6 +240,7 @@ keyManagementFactory.register(
           {
             accountIndex: params.accountIndex,
             chainId: params.chainId,
+            purpose: params.purpose,
             trezorConfig: {
               communicationType: CommunicationType.Node,
               manifest: {
diff --git a/packages/e2e/src/scripts/mnemonic.ts b/packages/e2e/src/scripts/mnemonic.ts
index 1b9ce68d99c..c31372e2d79 100644
--- a/packages/e2e/src/scripts/mnemonic.ts
+++ b/packages/e2e/src/scripts/mnemonic.ts
@@ -1,7 +1,7 @@
 /* eslint-disable no-console */
 /* eslint-disable @typescript-eslint/no-floating-promises */
 import * as Crypto from '@cardano-sdk/crypto';
-import { AddressType, InMemoryKeyAgent, util } from '@cardano-sdk/key-management';
+import { AddressType, InMemoryKeyAgent, KeyPurpose, util } from '@cardano-sdk/key-management';
 import { localNetworkChainId } from '../util';
 
 /** Generates a new set of Mnemonic words and prints them to the console. */
@@ -14,7 +14,8 @@ import { localNetworkChainId } from '../util';
     {
       chainId: localNetworkChainId,
       getPassphrase: async () => Buffer.from(''),
-      mnemonicWords: mnemonicArray
+      mnemonicWords: mnemonicArray,
+      purpose: KeyPurpose.STANDARD
     },
     {
       bip32Ed25519: new Crypto.SodiumBip32Ed25519(),
diff --git a/packages/e2e/src/util/createMockKeyAgent.ts b/packages/e2e/src/util/createMockKeyAgent.ts
index 3df1ed1595e..5c98aca4551 100644
--- a/packages/e2e/src/util/createMockKeyAgent.ts
+++ b/packages/e2e/src/util/createMockKeyAgent.ts
@@ -1,6 +1,6 @@
 import { Bip32PublicKeyHex, SodiumBip32Ed25519 } from '@cardano-sdk/crypto';
 import { Cardano } from '@cardano-sdk/core';
-import { GroupedAddress, KeyAgent, KeyAgentType } from '@cardano-sdk/key-management';
+import { GroupedAddress, KeyAgent, KeyAgentType, KeyPurpose } from '@cardano-sdk/key-management';
 
 const accountIndex = 0;
 const chainId = Cardano.ChainIds.Preview;
@@ -18,12 +18,16 @@ export const createMockKeyAgent = (deriveAddressesReturn: GroupedAddress[] = [])
     derivePublicKey: jest.fn(),
     exportRootPrivateKey: jest.fn(),
     extendedAccountPublicKey,
+    get purpose(): KeyPurpose {
+      return KeyPurpose.STANDARD;
+    },
     serializableData: {
       __typename: KeyAgentType.InMemory,
       accountIndex,
       chainId,
       encryptedRootPrivateKeyBytes: [],
-      extendedAccountPublicKey
+      extendedAccountPublicKey,
+      purpose: KeyPurpose.STANDARD
     },
     signBlob: jest.fn(),
     signTransaction: jest.fn()
diff --git a/packages/e2e/src/util/util.ts b/packages/e2e/src/util/util.ts
index b363f2aebf4..ee98d49338b 100644
--- a/packages/e2e/src/util/util.ts
+++ b/packages/e2e/src/util/util.ts
@@ -18,7 +18,7 @@ import {
   timeout
 } from 'rxjs';
 import { FAST_OPERATION_TIMEOUT_DEFAULT, SYNC_TIMEOUT_DEFAULT } from '../defaults';
-import { InMemoryKeyAgent, TransactionSigner } from '@cardano-sdk/key-management';
+import { InMemoryKeyAgent, KeyPurpose, TransactionSigner } from '@cardano-sdk/key-management';
 import { InitializeTxProps } from '@cardano-sdk/tx-construction';
 import { TestWallet, networkInfoProviderFactory } from '../factories';
 import { getEnv, walletVariables } from '../environment';
@@ -228,17 +228,20 @@ export const submitCertificate = async (certificate: Cardano.Certificate, wallet
  * @param mnemonics The random set of mnemonics.
  * @param genesis Network genesis parameters
  * @param bip32Ed25519 The Ed25519 cryptography implementation.
+ * @param purpose they key derivation purpose of either 1852 or 1854
  */
 export const createStandaloneKeyAgent = async (
   mnemonics: string[],
   genesis: Cardano.CompactGenesis,
-  bip32Ed25519: Crypto.Bip32Ed25519
+  bip32Ed25519: Crypto.Bip32Ed25519,
+  purpose: KeyPurpose
 ) =>
   await InMemoryKeyAgent.fromBip39MnemonicWords(
     {
       chainId: genesis,
       getPassphrase: async () => Buffer.from(''),
-      mnemonicWords: mnemonics
+      mnemonicWords: mnemonics,
+      purpose
     },
     { bip32Ed25519, logger }
   );
diff --git a/packages/e2e/test/long-running/multisig-wallet/MultiSigWallet.ts b/packages/e2e/test/long-running/multisig-wallet/MultiSigWallet.ts
index 7b4b1809cea..142ec708882 100644
--- a/packages/e2e/test/long-running/multisig-wallet/MultiSigWallet.ts
+++ b/packages/e2e/test/long-running/multisig-wallet/MultiSigWallet.ts
@@ -4,6 +4,7 @@ import {
   AddressType,
   GroupedAddress,
   InMemoryKeyAgent,
+  KeyPurpose,
   KeyRole
 } from '@cardano-sdk/key-management';
 import {
@@ -215,7 +216,7 @@ export class MultiSigWallet {
         body: multiSigTx.getTransaction().body,
         hash: multiSigTx.getTransaction().id
       },
-      { knownAddresses: [this.#address], txInKeyPathMap: {} },
+      { knownAddresses: [this.#address], purpose: KeyPurpose.MULTI_SIG, txInKeyPathMap: {} },
       { additionalKeyPaths: [DERIVATION_PATH] }
     );
 
diff --git a/packages/e2e/test/long-running/multisig-wallet/multisig-delegation-rewards.test.ts b/packages/e2e/test/long-running/multisig-wallet/multisig-delegation-rewards.test.ts
index 93d51150bf9..183013cd1a6 100644
--- a/packages/e2e/test/long-running/multisig-wallet/multisig-delegation-rewards.test.ts
+++ b/packages/e2e/test/long-running/multisig-wallet/multisig-delegation-rewards.test.ts
@@ -1,7 +1,7 @@
 import * as Crypto from '@cardano-sdk/crypto';
 import { BaseWallet } from '@cardano-sdk/wallet';
 import { Cardano, EraSummary, StakePoolProvider, createSlotEpochCalc } from '@cardano-sdk/core';
-import { InMemoryKeyAgent, KeyRole } from '@cardano-sdk/key-management';
+import { InMemoryKeyAgent, KeyPurpose, KeyRole } from '@cardano-sdk/key-management';
 import { MultiSigTx } from './MultiSigTx';
 import { MultiSigWallet } from './MultiSigWallet';
 import { Observable, filter, firstValueFrom, map, take } from 'rxjs';
@@ -63,7 +63,7 @@ const fundMultiSigWallet = async (sendingWallet: BaseWallet, address: Cardano.Pa
 const getKeyAgent = async (mnemonics: string, faucetWallet: BaseWallet, bip32Ed25519: Crypto.Bip32Ed25519) => {
   const genesis = await firstValueFrom(faucetWallet.genesisParameters$);
 
-  const keyAgent = await createStandaloneKeyAgent(mnemonics.split(' '), genesis, bip32Ed25519);
+  const keyAgent = await createStandaloneKeyAgent(mnemonics.split(' '), genesis, bip32Ed25519, KeyPurpose.STANDARD);
 
   const pubKey = await keyAgent.derivePublicKey(DERIVATION_PATH);
 
diff --git a/packages/e2e/test/wallet_epoch_0/PersonalWallet/handle.test.ts b/packages/e2e/test/wallet_epoch_0/PersonalWallet/handle.test.ts
index 144bf7dbcb2..59285c8806d 100644
--- a/packages/e2e/test/wallet_epoch_0/PersonalWallet/handle.test.ts
+++ b/packages/e2e/test/wallet_epoch_0/PersonalWallet/handle.test.ts
@@ -1,7 +1,7 @@
 /* eslint-disable sonarjs/no-duplicate-string */
 import { BaseWallet } from '@cardano-sdk/wallet';
 import { Cardano, metadatum } from '@cardano-sdk/core';
-import { KeyAgent, TransactionSigner } from '@cardano-sdk/key-management';
+import { KeyAgent, KeyPurpose, TransactionSigner } from '@cardano-sdk/key-management';
 import {
   bip32Ed25519Factory,
   burnTokens,
@@ -50,7 +50,8 @@ describe('Ada handle', () => {
     keyAgent = await createStandaloneKeyAgent(
       env.KEY_MANAGEMENT_PARAMS.mnemonic.split(' '),
       await firstValueFrom(wallet.genesisParameters$),
-      await bip32Ed25519Factory.create(env.KEY_MANAGEMENT_PARAMS.bip32Ed25519, null, logger)
+      await bip32Ed25519Factory.create(env.KEY_MANAGEMENT_PARAMS.bip32Ed25519, null, logger),
+      KeyPurpose.STANDARD
     );
     ({ policyScript, policySigner, policyId } = await createHandlePolicy(keyAgent));
     const handleProviderPolicyId = await getHandlePolicyId(
diff --git a/packages/e2e/test/wallet_epoch_0/PersonalWallet/mint.test.ts b/packages/e2e/test/wallet_epoch_0/PersonalWallet/mint.test.ts
index 17834da408d..9071031ca2d 100644
--- a/packages/e2e/test/wallet_epoch_0/PersonalWallet/mint.test.ts
+++ b/packages/e2e/test/wallet_epoch_0/PersonalWallet/mint.test.ts
@@ -1,7 +1,7 @@
 import { BaseWallet, FinalizeTxProps } from '@cardano-sdk/wallet';
 import { Cardano, nativeScriptPolicyId } from '@cardano-sdk/core';
 import { InitializeTxProps } from '@cardano-sdk/tx-construction';
-import { KeyRole, util } from '@cardano-sdk/key-management';
+import { KeyPurpose, KeyRole, util } from '@cardano-sdk/key-management';
 import {
   bip32Ed25519Factory,
   burnTokens,
@@ -40,7 +40,8 @@ describe('PersonalWallet/mint', () => {
     const aliceKeyAgent = await createStandaloneKeyAgent(
       env.KEY_MANAGEMENT_PARAMS.mnemonic.split(' '),
       genesis,
-      await bip32Ed25519Factory.create(env.KEY_MANAGEMENT_PARAMS.bip32Ed25519, null, logger)
+      await bip32Ed25519Factory.create(env.KEY_MANAGEMENT_PARAMS.bip32Ed25519, null, logger),
+      KeyPurpose.STANDARD
     );
 
     const derivationPath = {
diff --git a/packages/e2e/test/wallet_epoch_0/PersonalWallet/multiAddress.test.ts b/packages/e2e/test/wallet_epoch_0/PersonalWallet/multiAddress.test.ts
index d6aac295a7b..85b071d9312 100644
--- a/packages/e2e/test/wallet_epoch_0/PersonalWallet/multiAddress.test.ts
+++ b/packages/e2e/test/wallet_epoch_0/PersonalWallet/multiAddress.test.ts
@@ -1,5 +1,5 @@
 /* eslint-disable sonarjs/no-duplicate-string */
-import { AddressType, GroupedAddress, util } from '@cardano-sdk/key-management';
+import { AddressType, GroupedAddress, KeyPurpose, util } from '@cardano-sdk/key-management';
 import { BaseWallet } from '@cardano-sdk/wallet';
 import { Cardano } from '@cardano-sdk/core';
 import {
@@ -43,7 +43,8 @@ describe('PersonalWallet/multiAddress', () => {
     const multiAddressKeyAgent = await createStandaloneKeyAgent(
       mnemonics,
       genesis,
-      await bip32Ed25519Factory.create(env.KEY_MANAGEMENT_PARAMS.bip32Ed25519, null, logger)
+      await bip32Ed25519Factory.create(env.KEY_MANAGEMENT_PARAMS.bip32Ed25519, null, logger),
+      KeyPurpose.STANDARD
     );
 
     let txBuilder = wallet.createTxBuilder();
diff --git a/packages/e2e/test/wallet_epoch_0/PersonalWallet/multisignature.test.ts b/packages/e2e/test/wallet_epoch_0/PersonalWallet/multisignature.test.ts
index 160a6a35c93..fd98a035643 100644
--- a/packages/e2e/test/wallet_epoch_0/PersonalWallet/multisignature.test.ts
+++ b/packages/e2e/test/wallet_epoch_0/PersonalWallet/multisignature.test.ts
@@ -2,7 +2,7 @@
 import { BaseWallet, FinalizeTxProps } from '@cardano-sdk/wallet';
 import { Cardano, nativeScriptPolicyId } from '@cardano-sdk/core';
 import { InitializeTxProps } from '@cardano-sdk/tx-construction';
-import { KeyRole, util } from '@cardano-sdk/key-management';
+import { KeyPurpose, KeyRole, util } from '@cardano-sdk/key-management';
 import {
   bip32Ed25519Factory,
   burnTokens,
@@ -48,12 +48,14 @@ describe('PersonalWallet/multisignature', () => {
     const aliceKeyAgent = await createStandaloneKeyAgent(
       env.KEY_MANAGEMENT_PARAMS.mnemonic.split(' '),
       genesis,
-      bip32Ed25519
+      bip32Ed25519,
+      KeyPurpose.MULTI_SIG
     );
     const bobKeyAgent = await createStandaloneKeyAgent(
       env.KEY_MANAGEMENT_PARAMS.mnemonic.split(' '),
       genesis,
-      bip32Ed25519
+      bip32Ed25519,
+      KeyPurpose.MULTI_SIG
     );
 
     const aliceDerivationPath = {
diff --git a/packages/e2e/test/wallet_epoch_0/PersonalWallet/nft.test.ts b/packages/e2e/test/wallet_epoch_0/PersonalWallet/nft.test.ts
index 107c7973964..963fc5126fb 100644
--- a/packages/e2e/test/wallet_epoch_0/PersonalWallet/nft.test.ts
+++ b/packages/e2e/test/wallet_epoch_0/PersonalWallet/nft.test.ts
@@ -2,7 +2,7 @@
 import { Asset, Cardano, metadatum, nativeScriptPolicyId } from '@cardano-sdk/core';
 import { Assets, BaseWallet, FinalizeTxProps } from '@cardano-sdk/wallet';
 import { InitializeTxProps } from '@cardano-sdk/tx-construction';
-import { KeyRole, TransactionSigner, util } from '@cardano-sdk/key-management';
+import { KeyPurpose, KeyRole, TransactionSigner, util } from '@cardano-sdk/key-management';
 import {
   bip32Ed25519Factory,
   burnTokens,
@@ -61,7 +61,8 @@ describe('PersonalWallet.assets/nft', () => {
     const keyAgent = await createStandaloneKeyAgent(
       env.KEY_MANAGEMENT_PARAMS.mnemonic.split(' '),
       genesis,
-      await bip32Ed25519Factory.create(env.KEY_MANAGEMENT_PARAMS.bip32Ed25519, null, logger)
+      await bip32Ed25519Factory.create(env.KEY_MANAGEMENT_PARAMS.bip32Ed25519, null, logger),
+      KeyPurpose.STANDARD
     );
 
     const derivationPath = {
diff --git a/packages/e2e/test/wallet_epoch_0/SharedWallet/utils.ts b/packages/e2e/test/wallet_epoch_0/SharedWallet/utils.ts
index 855ceb875ac..a3071f19a5d 100644
--- a/packages/e2e/test/wallet_epoch_0/SharedWallet/utils.ts
+++ b/packages/e2e/test/wallet_epoch_0/SharedWallet/utils.ts
@@ -2,6 +2,7 @@ import * as Crypto from '@cardano-sdk/crypto';
 import {
   AccountKeyDerivationPath,
   KeyAgent,
+  KeyPurpose,
   KeyRole,
   SignBlobResult,
   SignDataContext,
@@ -30,7 +31,12 @@ const getKeyAgent = async (
   genesisParameters: Cardano.CompactGenesis,
   bip32Ed25519: Crypto.Bip32Ed25519
 ) => {
-  const keyAgent = await createStandaloneKeyAgent(mnemonics.split(' '), genesisParameters, bip32Ed25519);
+  const keyAgent = await createStandaloneKeyAgent(
+    mnemonics.split(' '),
+    genesisParameters,
+    bip32Ed25519,
+    KeyPurpose.STANDARD
+  );
 
   const pubKey = await keyAgent.derivePublicKey(DERIVATION_PATH);
 
diff --git a/packages/e2e/test/web-extension/extension/ui.ts b/packages/e2e/test/web-extension/extension/ui.ts
index b1ab310b086..4c1e9367954 100644
--- a/packages/e2e/test/web-extension/extension/ui.ts
+++ b/packages/e2e/test/web-extension/extension/ui.ts
@@ -31,6 +31,7 @@ import { Cardano } from '@cardano-sdk/core';
 import {
   CommunicationType,
   InMemoryKeyAgent,
+  KeyPurpose,
   SerializableInMemoryKeyAgentData,
   emip3encrypt
 } from '@cardano-sdk/key-management';
@@ -304,7 +305,8 @@ const createWalletIfNotExistsAndActivate = async (accountIndex: number) => {
         accountIndex,
         chainId: env.KEY_MANAGEMENT_PARAMS.chainId,
         getPassphrase: async () => passphrase,
-        mnemonicWords
+        mnemonicWords,
+        purpose: KeyPurpose.STANDARD
       },
       { bip32Ed25519, logger }
     );
diff --git a/packages/hardware-ledger/src/LedgerKeyAgent.ts b/packages/hardware-ledger/src/LedgerKeyAgent.ts
index 99113244721..69f827f5b23 100644
--- a/packages/hardware-ledger/src/LedgerKeyAgent.ts
+++ b/packages/hardware-ledger/src/LedgerKeyAgent.ts
@@ -8,6 +8,7 @@ import {
   KeyAgentBase,
   KeyAgentDependencies,
   KeyAgentType,
+  KeyPurpose,
   SerializableLedgerKeyAgentData,
   SignBlobResult,
   SignTransactionContext,
@@ -67,12 +68,14 @@ export interface CreateLedgerKeyAgentProps {
   accountIndex?: number;
   communicationType: CommunicationType;
   deviceConnection?: LedgerConnection | null;
+  purpose: KeyPurpose;
 }
 
 export interface GetLedgerXpubProps {
   deviceConnection?: LedgerConnection;
   communicationType: CommunicationType;
   accountIndex: number;
+  purpose: KeyPurpose;
 }
 
 export interface CreateLedgerTransportProps {
@@ -434,11 +437,12 @@ export class LedgerKeyAgent extends KeyAgentBase {
   static async getXpub({
     deviceConnection,
     communicationType,
-    accountIndex
+    accountIndex,
+    purpose
   }: GetLedgerXpubProps): Promise<Crypto.Bip32PublicKeyHex> {
     try {
       const recoveredDeviceConnection = await LedgerKeyAgent.checkDeviceConnection(communicationType, deviceConnection);
-      const derivationPath = `${CardanoKeyConst.PURPOSE}'/${CardanoKeyConst.COIN_TYPE}'/${accountIndex}'`;
+      const derivationPath = `${purpose}'/${CardanoKeyConst.COIN_TYPE}'/${accountIndex}'`;
       const extendedPublicKey = await recoveredDeviceConnection.getExtendedPublicKey({
         path: str_to_path(derivationPath) // BIP32Path
       });
@@ -468,7 +472,7 @@ export class LedgerKeyAgent extends KeyAgentBase {
    * @throws TransportError
    */
   static async createWithDevice(
-    { chainId, accountIndex = 0, communicationType, deviceConnection }: CreateLedgerKeyAgentProps,
+    { chainId, accountIndex = 0, communicationType, deviceConnection, purpose }: CreateLedgerKeyAgentProps,
     dependencies: KeyAgentDependencies
   ) {
     const deviceListPaths = await LedgerKeyAgent.getHidDeviceList(communicationType);
@@ -479,7 +483,8 @@ export class LedgerKeyAgent extends KeyAgentBase {
     const extendedAccountPublicKey = await LedgerKeyAgent.getXpub({
       accountIndex,
       communicationType,
-      deviceConnection: activeDeviceConnection
+      deviceConnection: activeDeviceConnection,
+      purpose
     });
 
     return new LedgerKeyAgent(
@@ -488,7 +493,8 @@ export class LedgerKeyAgent extends KeyAgentBase {
         chainId,
         communicationType,
         deviceConnection: activeDeviceConnection,
-        extendedAccountPublicKey
+        extendedAccountPublicKey,
+        purpose
       },
       dependencies
     );
@@ -539,7 +545,7 @@ export class LedgerKeyAgent extends KeyAgentBase {
   // TODO: Allow additional key paths
   async signTransaction(
     { body, hash }: Cardano.TxBodyWithHash,
-    { knownAddresses, txInKeyPathMap }: SignTransactionContext
+    { knownAddresses, txInKeyPathMap, purpose }: SignTransactionContext
   ): Promise<Cardano.Signatures> {
     try {
       const ledgerTxData = await toLedgerTx(body, {
@@ -547,6 +553,7 @@ export class LedgerKeyAgent extends KeyAgentBase {
         chainId: this.chainId,
         dRepPublicKey: await this.derivePublicKey(util.DREP_KEY_DERIVATION_PATH),
         knownAddresses,
+        purpose,
         txInKeyPathMap
       });
 
diff --git a/packages/hardware-ledger/src/transformers/txIn.ts b/packages/hardware-ledger/src/transformers/txIn.ts
index e64cab74d2e..6f8870830cd 100644
--- a/packages/hardware-ledger/src/transformers/txIn.ts
+++ b/packages/hardware-ledger/src/transformers/txIn.ts
@@ -6,14 +6,18 @@ import { TxInId, util } from '@cardano-sdk/key-management';
 
 const resolveKeyPath = (
   txIn: Cardano.TxIn,
-  { accountIndex, txInKeyPathMap }: LedgerTxTransformerContext
+  { accountIndex, txInKeyPathMap, purpose }: LedgerTxTransformerContext
 ): Ledger.BIP32Path | null => {
-  const utxoKeyPath = txInKeyPathMap[TxInId(txIn)];
-  if (utxoKeyPath) {
-    return util.accountKeyDerivationPathToBip32Path(accountIndex, utxoKeyPath);
-  }
+  const txInKeyPath = txInKeyPathMap[TxInId(txIn)];
 
-  return null;
+  if (!txInKeyPath || txInKeyPath.role === undefined || txInKeyPath.index === undefined) return null;
+
+  const utxoKeyPath = {
+    ...txInKeyPath,
+    purpose
+  };
+
+  return util.accountKeyDerivationPathToBip32Path(accountIndex, utxoKeyPath);
 };
 
 export const toTxIn: Transform<Cardano.TxIn, Ledger.TxInput, LedgerTxTransformerContext> = (txIn, context) => ({
diff --git a/packages/hardware-ledger/src/transformers/withdrawals.ts b/packages/hardware-ledger/src/transformers/withdrawals.ts
index 9df233b2a62..ab782300707 100644
--- a/packages/hardware-ledger/src/transformers/withdrawals.ts
+++ b/packages/hardware-ledger/src/transformers/withdrawals.ts
@@ -1,13 +1,16 @@
 import * as Ledger from '@cardano-foundation/ledgerjs-hw-app-cardano';
 import { Cardano } from '@cardano-sdk/core';
-import { CardanoKeyConst, GroupedAddress, util } from '@cardano-sdk/key-management';
+import { CardanoKeyConst, GroupedAddress, KeyPurpose, util } from '@cardano-sdk/key-management';
 import { InvalidArgumentError, Transform, areNumbersEqualInConstantTime } from '@cardano-sdk/util';
 import { LedgerTxTransformerContext } from '../types';
 
-const resolveKeyPath = (
-  rewardAddress: Cardano.RewardAddress,
-  knownAddresses: GroupedAddress[] | undefined
-): Ledger.BIP32Path | null => {
+interface ResolveKeyPathParams {
+  rewardAddress: Cardano.RewardAddress;
+  knownAddresses: GroupedAddress[] | undefined;
+  purpose: KeyPurpose;
+}
+
+const resolveKeyPath = ({ rewardAddress, knownAddresses, purpose }: ResolveKeyPathParams): Ledger.BIP32Path | null => {
   if (!knownAddresses) return null;
 
   const knownAddress = knownAddresses.find(
@@ -16,7 +19,7 @@ const resolveKeyPath = (
 
   if (knownAddress && knownAddress.stakeKeyDerivationPath) {
     return [
-      util.harden(CardanoKeyConst.PURPOSE),
+      util.harden(purpose),
       util.harden(CardanoKeyConst.COIN_TYPE),
       util.harden(knownAddress.accountIndex),
       knownAddress.stakeKeyDerivationPath.role,
@@ -35,11 +38,16 @@ export const toWithdrawal: Transform<Cardano.Withdrawal, Ledger.Withdrawal, Ledg
   const rewardAddress = address?.asReward();
 
   if (!rewardAddress) throw new InvalidArgumentError('withdrawal', 'Invalid withdrawal stake address');
+  if (!context?.purpose) throw new InvalidArgumentError('withdrawal', 'Key purpose is required');
 
   let ledgerWithdrawal;
 
   if (areNumbersEqualInConstantTime(rewardAddress.getPaymentCredential().type, Cardano.CredentialType.KeyHash)) {
-    const keyPath = resolveKeyPath(rewardAddress, context?.knownAddresses);
+    const keyPath = resolveKeyPath({
+      knownAddresses: context?.knownAddresses,
+      purpose: context?.purpose,
+      rewardAddress
+    });
     ledgerWithdrawal = keyPath
       ? {
           amount: withdrawal.quantity,
diff --git a/packages/hardware-ledger/test/LedgerKeyAgent.test.ts b/packages/hardware-ledger/test/LedgerKeyAgent.test.ts
index 87b16f18b87..2c3ee82aa7f 100644
--- a/packages/hardware-ledger/test/LedgerKeyAgent.test.ts
+++ b/packages/hardware-ledger/test/LedgerKeyAgent.test.ts
@@ -3,7 +3,7 @@ import * as Crypto from '@cardano-sdk/crypto';
 import * as Ledger from '@cardano-foundation/ledgerjs-hw-app-cardano';
 import { Ada, InvalidDataReason } from '@cardano-foundation/ledgerjs-hw-app-cardano';
 import { Cardano } from '@cardano-sdk/core';
-import { CardanoKeyConst, CommunicationType, util } from '@cardano-sdk/key-management';
+import { CardanoKeyConst, CommunicationType, KeyPurpose, util } from '@cardano-sdk/key-management';
 import { LedgerKeyAgent } from '../src';
 import { dummyLogger } from 'ts-log';
 import { poolId, poolParameters, pureAdaTxOut, stakeKeyHash, txIn, txOutWithDatum } from './testData';
@@ -366,6 +366,7 @@ describe('LedgerKeyAgent', () => {
     const txId = '0000000000000000000000000000000000000000000000000000000000000000' as unknown as Cardano.TransactionId;
     const noAddressesOptions = {
       knownAddresses: [],
+      purpose: KeyPurpose.STANDARD,
       txInKeyPathMap: {}
     };
 
@@ -379,7 +380,8 @@ describe('LedgerKeyAgent', () => {
           communicationType: CommunicationType.Node,
           extendedAccountPublicKey: Crypto.Bip32PublicKeyHex(
             '00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000'
-          )
+          ),
+          purpose: KeyPurpose.STANDARD
         },
         {
           bip32Ed25519: new Crypto.SodiumBip32Ed25519(),
diff --git a/packages/hardware-ledger/test/testData.ts b/packages/hardware-ledger/test/testData.ts
index a8a876f7d99..74f47cdeb30 100644
--- a/packages/hardware-ledger/test/testData.ts
+++ b/packages/hardware-ledger/test/testData.ts
@@ -1,5 +1,5 @@
 import * as Crypto from '@cardano-sdk/crypto';
-import { AddressType, KeyRole } from '@cardano-sdk/key-management';
+import { AddressType, KeyPurpose, KeyRole } from '@cardano-sdk/key-management';
 import { Base64Blob, HexBlob } from '@cardano-sdk/util';
 import { Cardano, Serialization } from '@cardano-sdk/core';
 import { LedgerTxTransformerContext } from '../src';
@@ -357,6 +357,7 @@ export const CONTEXT_WITH_KNOWN_ADDRESSES: LedgerTxTransformerContext = {
       type: AddressType.Internal
     }
   ],
+  purpose: KeyPurpose.STANDARD,
   txInKeyPathMap: {}
 };
 
@@ -367,6 +368,7 @@ export const CONTEXT_WITHOUT_KNOWN_ADDRESSES: LedgerTxTransformerContext = {
     networkMagic: 999
   },
   knownAddresses: [],
+  purpose: KeyPurpose.STANDARD,
   txInKeyPathMap: {}
 };
 
diff --git a/packages/hardware-ledger/test/transformers/certificates.test.ts b/packages/hardware-ledger/test/transformers/certificates.test.ts
index 73e1591783a..e45d0faec4e 100644
--- a/packages/hardware-ledger/test/transformers/certificates.test.ts
+++ b/packages/hardware-ledger/test/transformers/certificates.test.ts
@@ -5,6 +5,7 @@ import {
   AddressType,
   CardanoKeyConst,
   GroupedAddress,
+  KeyPurpose,
   KeyRole,
   TxInId,
   TxInKeyPathMap,
@@ -81,6 +82,7 @@ const mockContext: LedgerTxTransformerContext = {
     createGroupedAddress(address1, ownRewardAccount, AddressType.External, 0, stakeKeyPath),
     createGroupedAddress(address2, ownRewardAccount, AddressType.External, 1, stakeKeyPath)
   ],
+  purpose: KeyPurpose.STANDARD,
   sender: undefined,
   txInKeyPathMap: createTxInKeyPathMapMock([
     createGroupedAddress(address1, ownRewardAccount, AddressType.External, 0, stakeKeyPath),
diff --git a/packages/hardware-trezor/src/TrezorKeyAgent.ts b/packages/hardware-trezor/src/TrezorKeyAgent.ts
index 0c18a1a2067..271a9909d5d 100644
--- a/packages/hardware-trezor/src/TrezorKeyAgent.ts
+++ b/packages/hardware-trezor/src/TrezorKeyAgent.ts
@@ -8,6 +8,7 @@ import {
   KeyAgentBase,
   KeyAgentDependencies,
   KeyAgentType,
+  KeyPurpose,
   SerializableTrezorKeyAgentData,
   SignBlobResult,
   SignTransactionContext,
@@ -37,12 +38,14 @@ export interface TrezorKeyAgentProps extends Omit<SerializableTrezorKeyAgentData
 export interface GetTrezorXpubProps {
   accountIndex: number;
   communicationType: CommunicationType;
+  purpose: KeyPurpose;
 }
 
 export interface CreateTrezorKeyAgentProps {
   chainId: Cardano.ChainId;
   accountIndex?: number;
   trezorConfig: TrezorConfig;
+  purpose: KeyPurpose;
 }
 
 export type TrezorConnectInstanceType = typeof TrezorConnectNode | typeof TrezorConnectWeb;
@@ -135,10 +138,14 @@ export class TrezorKeyAgent extends KeyAgentBase {
     }
   }
 
-  static async getXpub({ accountIndex, communicationType }: GetTrezorXpubProps): Promise<Crypto.Bip32PublicKeyHex> {
+  static async getXpub({
+    accountIndex,
+    communicationType,
+    purpose
+  }: GetTrezorXpubProps): Promise<Crypto.Bip32PublicKeyHex> {
     try {
       await TrezorKeyAgent.checkDeviceConnection(communicationType);
-      const derivationPath = `m/${CardanoKeyConst.PURPOSE}'/${CardanoKeyConst.COIN_TYPE}'/${accountIndex}'`;
+      const derivationPath = `m/${purpose}'/${CardanoKeyConst.COIN_TYPE}'/${accountIndex}'`;
       const trezorConnect = getTrezorConnect(communicationType);
       const extendedPublicKey = await trezorConnect.cardanoGetPublicKey({
         path: derivationPath,
@@ -154,13 +161,14 @@ export class TrezorKeyAgent extends KeyAgentBase {
   }
 
   static async createWithDevice(
-    { chainId, accountIndex = 0, trezorConfig }: CreateTrezorKeyAgentProps,
+    { chainId, accountIndex = 0, trezorConfig, purpose }: CreateTrezorKeyAgentProps,
     dependencies: KeyAgentDependencies
   ) {
     const isTrezorInitialized = await TrezorKeyAgent.initializeTrezorTransport(trezorConfig);
     const extendedAccountPublicKey = await TrezorKeyAgent.getXpub({
       accountIndex,
-      communicationType: trezorConfig.communicationType
+      communicationType: trezorConfig.communicationType,
+      purpose
     });
     return new TrezorKeyAgent(
       {
@@ -168,6 +176,7 @@ export class TrezorKeyAgent extends KeyAgentBase {
         chainId,
         extendedAccountPublicKey,
         isTrezorInitialized,
+        purpose,
         trezorConfig
       },
       dependencies
@@ -208,7 +217,7 @@ export class TrezorKeyAgent extends KeyAgentBase {
 
   async signTransaction(
     { body, hash }: Cardano.TxBodyWithHash,
-    { knownAddresses, txInKeyPathMap }: SignTransactionContext
+    { knownAddresses, txInKeyPathMap, purpose }: SignTransactionContext
   ): Promise<Cardano.Signatures> {
     try {
       await this.isTrezorInitialized;
@@ -216,6 +225,7 @@ export class TrezorKeyAgent extends KeyAgentBase {
         accountIndex: this.accountIndex,
         chainId: this.chainId,
         knownAddresses,
+        purpose,
         txInKeyPathMap
       });
 
diff --git a/packages/hardware-trezor/src/transformers/keyPaths.ts b/packages/hardware-trezor/src/transformers/keyPaths.ts
index 3b2ab27991e..372b4b966da 100644
--- a/packages/hardware-trezor/src/transformers/keyPaths.ts
+++ b/packages/hardware-trezor/src/transformers/keyPaths.ts
@@ -9,10 +9,16 @@ export const resolvePaymentKeyPathForTxIn = (
   context?: TrezorTxTransformerContext
 ): BIP32Path | undefined => {
   if (!context) return;
-  const txInKeyPath = context?.txInKeyPathMap[TxInId(txIn)];
-  if (txInKeyPath) {
-    return util.accountKeyDerivationPathToBip32Path(context.accountIndex, txInKeyPath);
-  }
+
+  const txInKeyPath = context.txInKeyPathMap[TxInId(txIn)];
+
+  if (!txInKeyPath || txInKeyPath.role === undefined || txInKeyPath.index === undefined) return;
+  const utxoKeyPath = {
+    ...txInKeyPath,
+    purpose: context.purpose
+  };
+
+  return util.accountKeyDerivationPathToBip32Path(context.accountIndex, utxoKeyPath);
 };
 
 export const resolveStakeKeyPath = (
diff --git a/packages/hardware-trezor/test/testData.ts b/packages/hardware-trezor/test/testData.ts
index 7726bf407a4..63a206166b3 100644
--- a/packages/hardware-trezor/test/testData.ts
+++ b/packages/hardware-trezor/test/testData.ts
@@ -1,5 +1,5 @@
 import * as Crypto from '@cardano-sdk/crypto';
-import { AddressType, GroupedAddress, KeyRole } from '@cardano-sdk/key-management';
+import { AddressType, GroupedAddress, KeyPurpose, KeyRole } from '@cardano-sdk/key-management';
 import { Cardano } from '@cardano-sdk/core';
 import { HexBlob } from '@cardano-sdk/util';
 import { TrezorTxTransformerContext } from '../src';
@@ -152,7 +152,10 @@ export const knownAddress: GroupedAddress = {
   type: AddressType.Internal
 };
 
-export const knownAddressPaymentKeyPath = { index: knownAddress.index, role: Number(knownAddress.type) };
+export const knownAddressPaymentKeyPath = {
+  index: knownAddress.index,
+  role: Number(knownAddress.type)
+};
 
 export const knownAddressWithoutStakingPath: GroupedAddress = {
   accountIndex: 0,
@@ -170,6 +173,7 @@ export const contextWithKnownAddresses: TrezorTxTransformerContext = {
     networkMagic: 999
   },
   knownAddresses: [knownAddress],
+  purpose: KeyPurpose.STANDARD,
   txInKeyPathMap: {}
 };
 
@@ -180,6 +184,7 @@ export const contextWithKnownAddressesWithoutStakingCredentials: TrezorTxTransfo
     networkMagic: 999
   },
   knownAddresses: [knownAddressWithoutStakingPath],
+  purpose: KeyPurpose.STANDARD,
   txInKeyPathMap: {}
 };
 
@@ -190,6 +195,7 @@ export const contextWithoutKnownAddresses: TrezorTxTransformerContext = {
     networkMagic: 999
   },
   knownAddresses: [],
+  purpose: KeyPurpose.STANDARD,
   txInKeyPathMap: {}
 };
 
diff --git a/packages/key-management/src/InMemoryKeyAgent.ts b/packages/key-management/src/InMemoryKeyAgent.ts
index b7fd927cb34..b5cab2f9dd3 100644
--- a/packages/key-management/src/InMemoryKeyAgent.ts
+++ b/packages/key-management/src/InMemoryKeyAgent.ts
@@ -7,6 +7,7 @@ import {
   KeyAgentDependencies,
   KeyAgentType,
   KeyPair,
+  KeyPurpose,
   SerializableInMemoryKeyAgentData,
   SignBlobResult,
   SignTransactionContext,
@@ -37,6 +38,7 @@ export interface FromBip39MnemonicWordsProps {
   mnemonic2ndFactorPassphrase?: string;
   getPassphrase: GetPassphrase;
   accountIndex?: number;
+  purpose: KeyPurpose;
 }
 
 const getPassphraseRethrowTypedError = async (getPassphrase: GetPassphrase) => {
@@ -55,11 +57,15 @@ export class InMemoryKeyAgent extends KeyAgentBase implements KeyAgent {
     this.#getPassphrase = getPassphrase;
   }
 
-  async signBlob({ index, role: type }: AccountKeyDerivationPath, blob: HexBlob): Promise<SignBlobResult> {
+  async signBlob(
+    { index, role: type, purpose }: AccountKeyDerivationPath & { purpose: KeyPurpose },
+    blob: HexBlob
+  ): Promise<SignBlobResult> {
     const rootPrivateKey = await this.#decryptRootPrivateKey();
     const accountKey = await deriveAccountPrivateKey({
       accountIndex: this.accountIndex,
       bip32Ed25519: this.bip32Ed25519,
+      purpose,
       rootPrivateKey
     });
 
@@ -89,7 +95,8 @@ export class InMemoryKeyAgent extends KeyAgentBase implements KeyAgent {
       getPassphrase,
       mnemonicWords,
       mnemonic2ndFactorPassphrase = '',
-      accountIndex = 0
+      accountIndex = 0,
+      purpose = KeyPurpose.STANDARD
     }: FromBip39MnemonicWordsProps,
     dependencies: KeyAgentDependencies
   ): Promise<InMemoryKeyAgent> {
@@ -103,6 +110,7 @@ export class InMemoryKeyAgent extends KeyAgentBase implements KeyAgent {
     const accountPrivateKey = await deriveAccountPrivateKey({
       accountIndex,
       bip32Ed25519: dependencies.bip32Ed25519,
+      purpose,
       rootPrivateKey
     });
 
@@ -114,7 +122,8 @@ export class InMemoryKeyAgent extends KeyAgentBase implements KeyAgent {
         chainId,
         encryptedRootPrivateKeyBytes: [...encryptedRootPrivateKey],
         extendedAccountPublicKey,
-        getPassphrase
+        getPassphrase,
+        purpose
       },
       dependencies
     );
@@ -122,7 +131,7 @@ export class InMemoryKeyAgent extends KeyAgentBase implements KeyAgent {
 
   async signTransaction(
     { body, hash }: Cardano.TxBodyWithHash,
-    { txInKeyPathMap, knownAddresses }: SignTransactionContext,
+    { txInKeyPathMap, knownAddresses, purpose }: SignTransactionContext,
     { additionalKeyPaths = [] }: SignTransactionOptions = {}
   ): Promise<Cardano.Signatures> {
     // Possible optimization is casting strings to OpaqueString types directly and skipping validation
@@ -139,7 +148,7 @@ export class InMemoryKeyAgent extends KeyAgentBase implements KeyAgent {
     return new Map<Crypto.Ed25519PublicKeyHex, Crypto.Ed25519SignatureHex>(
       await Promise.all(
         keyPaths.map(async ({ role, index }) => {
-          const { publicKey, signature } = await this.signBlob({ index, role }, blob);
+          const { publicKey, signature } = await this.signBlob({ index, purpose, role }, blob);
           return [publicKey, signature] as const;
         })
       )
diff --git a/packages/key-management/src/KeyAgentBase.ts b/packages/key-management/src/KeyAgentBase.ts
index 8e761a3afed..b468c3f0f43 100644
--- a/packages/key-management/src/KeyAgentBase.ts
+++ b/packages/key-management/src/KeyAgentBase.ts
@@ -5,6 +5,7 @@ import {
   GroupedAddress,
   KeyAgent,
   KeyAgentDependencies,
+  KeyPurpose,
   SerializableKeyAgentData,
   SignBlobResult,
   SignTransactionContext,
@@ -18,6 +19,7 @@ export abstract class KeyAgentBase implements KeyAgent {
   readonly #serializableData: SerializableKeyAgentData;
   readonly #bip32Ed25519: Crypto.Bip32Ed25519;
   readonly #account: Bip32Account;
+  readonly #purpose: KeyPurpose;
 
   get serializableData(): SerializableKeyAgentData {
     return this.#serializableData;
@@ -34,6 +36,9 @@ export abstract class KeyAgentBase implements KeyAgent {
   get bip32Ed25519(): Crypto.Bip32Ed25519 {
     return this.#bip32Ed25519;
   }
+  get purpose(): KeyPurpose {
+    return this.#purpose;
+  }
 
   abstract signBlob(derivationPath: AccountKeyDerivationPath, blob: HexBlob): Promise<SignBlobResult>;
   abstract exportRootPrivateKey(): Promise<Crypto.Bip32PrivateKeyHex>;
diff --git a/packages/key-management/src/cip8/cip30signData.ts b/packages/key-management/src/cip8/cip30signData.ts
index 194026964c2..60e77dc9bf4 100644
--- a/packages/key-management/src/cip8/cip30signData.ts
+++ b/packages/key-management/src/cip8/cip30signData.ts
@@ -1,5 +1,5 @@
 import * as Crypto from '@cardano-sdk/crypto';
-import { AccountKeyDerivationPath, GroupedAddress, KeyRole, MessageSender } from '../types';
+import { AccountKeyDerivationPath, GroupedAddress, KeyPurpose, KeyRole, MessageSender } from '../types';
 import {
   AlgorithmId,
   CBORValue,
@@ -65,7 +65,9 @@ const getDerivationPath = async (
     if (!knownRewardAddress)
       throw new Cip30DataSignError(Cip30DataSignErrorCode.ProofGeneration, 'Unknown reward address');
 
-    return knownRewardAddress.stakeKeyDerivationPath || STAKE_KEY_DERIVATION_PATH;
+    const { role, index } = knownRewardAddress.stakeKeyDerivationPath || STAKE_KEY_DERIVATION_PATH;
+
+    return { index, purpose: KeyPurpose.STANDARD, role };
   }
 
   const knownAddress = knownAddresses.find(({ address }) => address === signWith);
@@ -74,7 +76,7 @@ const getDerivationPath = async (
     throw new Cip30DataSignError(Cip30DataSignErrorCode.ProofGeneration, 'Unknown address');
   }
 
-  return { index: knownAddress.index, role: knownAddress.type as number as KeyRole };
+  return { index: knownAddress.index, purpose: KeyPurpose.STANDARD, role: knownAddress.type as number as KeyRole };
 };
 
 const createSigStructureHeaders = (addressBytes: Uint8Array) => {
diff --git a/packages/key-management/src/types.ts b/packages/key-management/src/types.ts
index 5494130eb7c..f38cbfc0750 100644
--- a/packages/key-management/src/types.ts
+++ b/packages/key-management/src/types.ts
@@ -38,10 +38,16 @@ export enum KeyRole {
   DRep = 3
 }
 
+export enum KeyPurpose {
+  STANDARD = 1852,
+  MULTI_SIG = 1854
+}
+
 export interface AccountKeyDerivationPath {
   role: KeyRole;
   index: number;
 }
+
 /** Internal = change address & External = receipt address */
 export enum AddressType {
   /** Change address */
@@ -93,6 +99,7 @@ export interface SerializableKeyAgentDataBase {
   chainId: Cardano.ChainId;
   accountIndex: number;
   extendedAccountPublicKey: Crypto.Bip32PublicKeyHex;
+  purpose: KeyPurpose;
 }
 
 export interface SerializableInMemoryKeyAgentData extends SerializableKeyAgentDataBase {
@@ -167,6 +174,7 @@ export interface SignTransactionContext {
   txInKeyPathMap: TxInKeyPathMap;
   knownAddresses: GroupedAddress[];
   handleResolutions?: HandleResolution[];
+  purpose: KeyPurpose;
   dRepPublicKey?: Crypto.Ed25519PublicKeyHex;
   sender?: MessageSender;
 }
@@ -181,6 +189,7 @@ export interface SignDataContext {
 export interface KeyAgent {
   get chainId(): Cardano.ChainId;
   get accountIndex(): number;
+  get purpose(): KeyPurpose;
   get serializableData(): SerializableKeyAgentData;
   get extendedAccountPublicKey(): Crypto.Bip32PublicKeyHex;
   get bip32Ed25519(): Crypto.Bip32Ed25519;
@@ -207,7 +216,6 @@ export interface KeyAgent {
    *
    * @param paymentKeyDerivationPath The payment key derivation path.
    * @param stakeKeyDerivationIndex The stake key index. This field is optional. If not provided it defaults to index 0.
-   * @param pure If set to true, the key agent will derive a new address without mutating its internal state.
    */
   deriveAddress(
     paymentKeyDerivationPath: AccountAddressDerivationPath,
@@ -224,6 +232,7 @@ export type AsyncKeyAgent = Pick<KeyAgent, 'deriveAddress' | 'derivePublicKey' |
   getBip32Ed25519(): Promise<Crypto.Bip32Ed25519>;
   getExtendedAccountPublicKey(): Promise<Crypto.Bip32PublicKeyHex>;
   getAccountIndex(): Promise<number>;
+  getKeyPurpose(): Promise<KeyPurpose>;
 } & Shutdown;
 
 export type WitnessOptions = SignTransactionOptions;
diff --git a/packages/key-management/src/util/KeyAgentTransactionSigner.ts b/packages/key-management/src/util/KeyAgentTransactionSigner.ts
index c8ea903cd6c..9a8177897eb 100644
--- a/packages/key-management/src/util/KeyAgentTransactionSigner.ts
+++ b/packages/key-management/src/util/KeyAgentTransactionSigner.ts
@@ -32,6 +32,7 @@ export class KeyAgentTransactionSigner implements TransactionSigner {
       tx,
       {
         knownAddresses: [],
+        purpose: this.#keyAgent.purpose,
         txInKeyPathMap: {}
       },
       {
diff --git a/packages/key-management/src/util/createAsyncKeyAgent.ts b/packages/key-management/src/util/createAsyncKeyAgent.ts
index 71a3f5e2470..2a5e70adc13 100644
--- a/packages/key-management/src/util/createAsyncKeyAgent.ts
+++ b/packages/key-management/src/util/createAsyncKeyAgent.ts
@@ -9,6 +9,7 @@ export const createAsyncKeyAgent = (keyAgent: KeyAgent, onShutdown?: () => void)
   getBip32Ed25519: () => Promise.resolve(keyAgent.bip32Ed25519),
   getChainId: () => Promise.resolve(keyAgent.chainId),
   getExtendedAccountPublicKey: () => Promise.resolve(keyAgent.extendedAccountPublicKey),
+  getKeyPurpose: () => Promise.resolve(keyAgent.serializableData.purpose),
   shutdown() {
     onShutdown?.();
   },
diff --git a/packages/key-management/src/util/key.ts b/packages/key-management/src/util/key.ts
index 9e1b8ebb47c..81c9789208d 100644
--- a/packages/key-management/src/util/key.ts
+++ b/packages/key-management/src/util/key.ts
@@ -1,16 +1,28 @@
 import * as Crypto from '@cardano-sdk/crypto';
-import { AccountKeyDerivationPath, CardanoKeyConst, Ed25519KeyPair, GroupedAddress, KeyPair, KeyRole } from '../types';
+import {
+  AccountKeyDerivationPath,
+  CardanoKeyConst,
+  Ed25519KeyPair,
+  GroupedAddress,
+  KeyPair,
+  KeyPurpose,
+  KeyRole
+} from '../types';
 import { BIP32Path } from '@cardano-sdk/crypto';
 
 export const harden = (num: number): number => 0x80_00_00_00 + num;
 
-export const STAKE_KEY_DERIVATION_PATH: AccountKeyDerivationPath = {
+export type AccountKeyDerivationPathWithPurpose = AccountKeyDerivationPath & { purpose: KeyPurpose };
+
+export const STAKE_KEY_DERIVATION_PATH: AccountKeyDerivationPathWithPurpose = {
   index: 0,
+  purpose: KeyPurpose.STANDARD,
   role: KeyRole.Stake
 };
 
-export const DREP_KEY_DERIVATION_PATH: AccountKeyDerivationPath = {
+export const DREP_KEY_DERIVATION_PATH: AccountKeyDerivationPathWithPurpose = {
   index: 0,
+  purpose: KeyPurpose.STANDARD,
   role: KeyRole.DRep
 };
 
@@ -26,15 +38,17 @@ export interface DeriveAccountPrivateKeyProps {
   rootPrivateKey: Crypto.Bip32PrivateKeyHex;
   accountIndex: number;
   bip32Ed25519: Crypto.Bip32Ed25519;
+  purpose: KeyPurpose;
 }
 
 export const deriveAccountPrivateKey = async ({
   rootPrivateKey,
   accountIndex,
-  bip32Ed25519
+  bip32Ed25519,
+  purpose
 }: DeriveAccountPrivateKeyProps): Promise<Crypto.Bip32PrivateKeyHex> =>
   await bip32Ed25519.derivePrivateKey(rootPrivateKey, [
-    harden(CardanoKeyConst.PURPOSE),
+    harden(purpose),
     harden(CardanoKeyConst.COIN_TYPE),
     harden(accountIndex)
   ]);
@@ -42,18 +56,20 @@ export const deriveAccountPrivateKey = async ({
 // TODO: test
 /**
  * Constructs the hardened derivation path for the specified
- * account key of an HD wallet as specified in CIP 1852
+ * account key of an HD wallet as specified in CIP 1852 or CIP 1854
  * https://cips.cardano.org/cips/cip1852/
+ * https://cips.cardano.org/cips/cip1854
  */
 export const accountKeyDerivationPathToBip32Path = (
   accountIndex: number,
-  { index, role }: AccountKeyDerivationPath
-): BIP32Path => [harden(CardanoKeyConst.PURPOSE), harden(CardanoKeyConst.COIN_TYPE), harden(accountIndex), role, index];
+  { index, role, purpose }: AccountKeyDerivationPathWithPurpose
+): BIP32Path => [harden(purpose), harden(CardanoKeyConst.COIN_TYPE), harden(accountIndex), role, index];
 
 /**
  * Constructs the hardened derivation path of the payment key for the
- * given grouped address of an HD wallet as specified in CIP 1852
+ * given grouped address of an HD wallet as specified in CIP 1852 or CIP 1854
  * https://cips.cardano.org/cips/cip1852/
+ * https://cips.cardano.org/cips/cip1854/
  */
 export const paymentKeyPathFromGroupedAddress = (address: GroupedAddress): BIP32Path => [
   harden(CardanoKeyConst.PURPOSE),
diff --git a/packages/key-management/test/Bip32Account.test.ts b/packages/key-management/test/Bip32Account.test.ts
index 59dffb70469..a576f5dd1c3 100644
--- a/packages/key-management/test/Bip32Account.test.ts
+++ b/packages/key-management/test/Bip32Account.test.ts
@@ -1,40 +1,63 @@
 import * as Crypto from '@cardano-sdk/crypto';
-import { AccountKeyDerivationPath, AddressType, Bip32Account, InMemoryKeyAgent, KeyRole, util } from '../src';
+import {
+  AccountKeyDerivationPath,
+  AddressType,
+  Bip32Account,
+  InMemoryKeyAgent,
+  KeyPurpose,
+  KeyRole,
+  util
+} from '../src';
 import { Cardano } from '@cardano-sdk/core';
 import { HexBlob } from '@cardano-sdk/util';
 import { dummyLogger } from 'ts-log';
 
+const initializeKeyAgents = async (accountIndex: number, testnetChainId: Cardano.ChainId, purpose: KeyPurpose) => {
+  const mnemonicWords = util.generateMnemonicWords();
+  const getPassphrase = jest.fn().mockResolvedValue(Buffer.from('password'));
+  const keyAgentDependencies = { bip32Ed25519: new Crypto.SodiumBip32Ed25519(), logger: dummyLogger };
+  const testnetKeyAgent = await InMemoryKeyAgent.fromBip39MnemonicWords(
+    {
+      accountIndex,
+      chainId: testnetChainId,
+      getPassphrase,
+      mnemonicWords,
+      purpose
+    },
+    keyAgentDependencies
+  );
+  const mainnetKeyAgent = await InMemoryKeyAgent.fromBip39MnemonicWords(
+    {
+      accountIndex,
+      chainId: Cardano.ChainIds.Mainnet,
+      getPassphrase,
+      mnemonicWords,
+      purpose
+    },
+    keyAgentDependencies
+  );
+
+  const testnetAccount = new Bip32Account(testnetKeyAgent.serializableData);
+  const mainnetAccount = new Bip32Account(mainnetKeyAgent.serializableData);
+
+  return { mainnetAccount, testnetAccount };
+};
+
 describe('Bip32Account', () => {
   const accountIndex = 1;
   const testnetChainId = Cardano.ChainIds.Preview;
   let testnetAccount: Bip32Account;
   let mainnetAccount: Bip32Account;
+  let multiSigTestnetAccount: Bip32Account;
+  let multiSigMainnetAccount: Bip32Account;
 
   beforeEach(async () => {
-    const mnemonicWords = util.generateMnemonicWords();
-    const getPassphrase = jest.fn().mockResolvedValue(Buffer.from('password'));
-    const keyAgentDependencies = { bip32Ed25519: new Crypto.SodiumBip32Ed25519(), logger: dummyLogger };
-    const testnetKeyAgent = await InMemoryKeyAgent.fromBip39MnemonicWords(
-      {
-        accountIndex,
-        chainId: testnetChainId,
-        getPassphrase,
-        mnemonicWords
-      },
-      keyAgentDependencies
-    );
-    const mainnetKeyAgent = await InMemoryKeyAgent.fromBip39MnemonicWords(
-      {
-        accountIndex,
-        chainId: Cardano.ChainIds.Mainnet,
-        getPassphrase,
-        mnemonicWords
-      },
-      keyAgentDependencies
-    );
-
-    testnetAccount = new Bip32Account(testnetKeyAgent.serializableData);
-    mainnetAccount = new Bip32Account(mainnetKeyAgent.serializableData);
+    const standardKeyAgents = await initializeKeyAgents(accountIndex, testnetChainId, KeyPurpose.STANDARD);
+    const multiSigKeyAgents = await initializeKeyAgents(accountIndex, testnetChainId, KeyPurpose.MULTI_SIG);
+    testnetAccount = standardKeyAgents.testnetAccount;
+    mainnetAccount = standardKeyAgents.mainnetAccount;
+    multiSigTestnetAccount = multiSigKeyAgents.testnetAccount;
+    multiSigMainnetAccount = multiSigKeyAgents.mainnetAccount;
   });
 
   it('derivePublicKey resolves with ed25519 public key', async () => {
@@ -42,7 +65,9 @@ describe('Bip32Account', () => {
       await testnetAccount.derivePublicKey({ index: 0, role: KeyRole.DRep }),
       await testnetAccount.derivePublicKey({ index: 1, role: KeyRole.External }),
       await mainnetAccount.derivePublicKey({ index: 2, role: KeyRole.Internal }),
-      await mainnetAccount.derivePublicKey({ index: 3, role: KeyRole.Stake })
+      await mainnetAccount.derivePublicKey({ index: 3, role: KeyRole.Stake }),
+      await multiSigTestnetAccount.derivePublicKey({ index: 0, role: KeyRole.External }),
+      await multiSigMainnetAccount.derivePublicKey({ index: 1, role: KeyRole.Stake })
     ];
     for (const key of derivedKeys) {
       const hexKey = key.hex();
diff --git a/packages/key-management/test/InMemoryKeyAgent.test.ts b/packages/key-management/test/InMemoryKeyAgent.test.ts
index a965d1b1b91..62eb708a9e1 100644
--- a/packages/key-management/test/InMemoryKeyAgent.test.ts
+++ b/packages/key-management/test/InMemoryKeyAgent.test.ts
@@ -1,5 +1,13 @@
 import * as Crypto from '@cardano-sdk/crypto';
-import { AddressType, GroupedAddress, InMemoryKeyAgent, KeyRole, SerializableInMemoryKeyAgentData, util } from '../src';
+import {
+  AddressType,
+  GroupedAddress,
+  InMemoryKeyAgent,
+  KeyPurpose,
+  KeyRole,
+  SerializableInMemoryKeyAgentData,
+  util
+} from '../src';
 import { Cardano } from '@cardano-sdk/core';
 import { HexBlob } from '@cardano-sdk/util';
 import { dummyLogger } from 'ts-log';
@@ -20,7 +28,8 @@ describe('InMemoryKeyAgent', () => {
       {
         chainId: Cardano.ChainIds.Preview,
         getPassphrase,
-        mnemonicWords
+        mnemonicWords,
+        purpose: KeyPurpose.STANDARD
       },
       { bip32Ed25519, logger: dummyLogger }
     );
@@ -46,7 +55,8 @@ describe('InMemoryKeyAgent', () => {
         chainId: Cardano.ChainIds.Preview,
         getPassphrase,
         mnemonic2ndFactorPassphrase: 'passphrase',
-        mnemonicWords
+        mnemonicWords,
+        purpose: KeyPurpose.STANDARD
       },
       { bip32Ed25519, logger: dummyLogger }
     );
@@ -77,7 +87,10 @@ describe('InMemoryKeyAgent', () => {
   });
 
   test('signBlob', async () => {
-    const { publicKey, signature } = await keyAgent.signBlob({ index: 0, role: KeyRole.Internal }, HexBlob('abc123'));
+    const { publicKey, signature } = await keyAgent.signBlob(
+      { index: 0, purpose: KeyPurpose.STANDARD, role: KeyRole.Internal },
+      HexBlob('abc123')
+    );
     expect(typeof publicKey).toBe('string');
     expect(typeof signature).toBe('string');
   });
@@ -97,6 +110,7 @@ describe('InMemoryKeyAgent', () => {
       },
       {
         knownAddresses,
+        purpose: KeyPurpose.STANDARD,
         txInKeyPathMap
       }
     );
@@ -158,10 +172,12 @@ describe('InMemoryKeyAgent', () => {
             await util.deriveAccountPrivateKey({
               accountIndex: 0,
               bip32Ed25519,
+              purpose: KeyPurpose.STANDARD,
               rootPrivateKey: Crypto.Bip32PrivateKeyHex(yoroiRootPrivateKeyHex)
             })
           ),
-          getPassphrase
+          getPassphrase,
+          purpose: KeyPurpose.STANDARD
         },
         { bip32Ed25519, logger: dummyLogger }
       );
@@ -174,7 +190,8 @@ describe('InMemoryKeyAgent', () => {
         {
           chainId: Cardano.ChainIds.Preview,
           getPassphrase,
-          mnemonicWords: yoroiMnemonic
+          mnemonicWords: yoroiMnemonic,
+          purpose: KeyPurpose.STANDARD
         },
         { bip32Ed25519, logger: dummyLogger }
       );
@@ -192,7 +209,8 @@ describe('InMemoryKeyAgent', () => {
         {
           chainId: Cardano.ChainIds.Preview,
           getPassphrase,
-          mnemonicWords: michaelMnemonic
+          mnemonicWords: michaelMnemonic,
+          purpose: KeyPurpose.STANDARD
         },
         { bip32Ed25519, logger: dummyLogger }
       );
@@ -203,7 +221,7 @@ describe('InMemoryKeyAgent', () => {
           body: { fee: 10n, inputs: [], outputs: [], validityInterval: {} },
           hash: Cardano.TransactionId('0000000000000000000000000000000000000000000000000000000000000000')
         },
-        { knownAddresses: [], txInKeyPathMap: {} }
+        { knownAddresses: [], purpose: KeyPurpose.STANDARD, txInKeyPathMap: {} }
       );
       expect(
         signature.has(Crypto.Ed25519PublicKeyHex('0b1c96fad4179d7910bd9485ac28c4c11368c83d18d01b29d4cf84d8ff6a06c4'))
@@ -255,11 +273,13 @@ describe('InMemoryKeyAgent', () => {
             await util.deriveAccountPrivateKey({
               accountIndex: 0,
               bip32Ed25519,
+              purpose: KeyPurpose.STANDARD,
               rootPrivateKey: Crypto.Bip32PrivateKeyHex(daedalusRootPrivateKeyHex)
             })
           ),
           // daedelus enforces min length of 10
-          getPassphrase: jest.fn().mockResolvedValue(Buffer.from('nMmys*X002'))
+          getPassphrase: jest.fn().mockResolvedValue(Buffer.from('nMmys*X002')),
+          purpose: KeyPurpose.STANDARD
         },
         { bip32Ed25519, logger: dummyLogger }
       );
@@ -278,7 +298,8 @@ describe('InMemoryKeyAgent', () => {
         {
           chainId: Cardano.ChainIds.Preview,
           getPassphrase,
-          mnemonicWords: daedelusMnemonic24
+          mnemonicWords: daedelusMnemonic24,
+          purpose: KeyPurpose.STANDARD
         },
         { bip32Ed25519, logger: dummyLogger }
       );
diff --git a/packages/key-management/test/KeyAgentBase.test.ts b/packages/key-management/test/KeyAgentBase.test.ts
index b30ac3dfc9f..9f93f8c1943 100644
--- a/packages/key-management/test/KeyAgentBase.test.ts
+++ b/packages/key-management/test/KeyAgentBase.test.ts
@@ -1,6 +1,5 @@
-/* eslint-disable sonarjs/no-duplicate-string */
 import * as Crypto from '@cardano-sdk/crypto';
-import { AddressType, KeyAgentBase, KeyAgentType, KeyRole, SerializableInMemoryKeyAgentData } from '../src';
+import { AddressType, KeyAgentBase, KeyAgentType, KeyPurpose, KeyRole, SerializableInMemoryKeyAgentData } from '../src';
 import { Cardano } from '@cardano-sdk/core';
 import { dummyLogger } from 'ts-log';
 
@@ -35,13 +34,11 @@ describe('KeyAgentBase', () => {
       extendedAccountPublicKey: Crypto.Bip32PublicKeyHex(
         // eslint-disable-next-line max-len
         'fc5ab25e830b67c47d0a17411bf7fdabf711a597fb6cf04102734b0a2934ceaaa65ff5e7c52498d52c07b8ddfcd436fc2b4d2775e2984a49d0c79f65ceee4779'
-      )
+      ),
+      purpose: KeyPurpose.STANDARD
     });
   });
 
-  // eslint-disable-next-line max-len
-  // extpubkey:  return '';
-
   test('deriveAddress derives a new address', async () => {
     const index = 1;
     const type = AddressType.External;
diff --git a/packages/key-management/test/mocks/testKeyAgent.ts b/packages/key-management/test/mocks/testKeyAgent.ts
index b2f7ba00741..4bd9f5535b9 100644
--- a/packages/key-management/test/mocks/testKeyAgent.ts
+++ b/packages/key-management/test/mocks/testKeyAgent.ts
@@ -1,5 +1,5 @@
 import { Cardano } from '@cardano-sdk/core';
-import { InMemoryKeyAgent, KeyAgentDependencies, util } from '../../src';
+import { InMemoryKeyAgent, KeyAgentDependencies, KeyPurpose, util } from '../../src';
 import { mockKeyAgentDependencies } from './mockKeyAgentDependencies';
 
 export const getPassphrase = jest.fn(async () => Buffer.from('password'));
@@ -9,7 +9,8 @@ export const testKeyAgent = async (dependencies: KeyAgentDependencies | undefine
     {
       chainId: Cardano.ChainIds.Preview,
       getPassphrase,
-      mnemonicWords: util.generateMnemonicWords()
+      mnemonicWords: util.generateMnemonicWords(),
+      purpose: KeyPurpose.STANDARD
     },
     dependencies
   );
diff --git a/packages/key-management/test/util/createWitnesser.test.ts b/packages/key-management/test/util/createWitnesser.test.ts
index c4ec60b3c2d..297de1a60c0 100644
--- a/packages/key-management/test/util/createWitnesser.test.ts
+++ b/packages/key-management/test/util/createWitnesser.test.ts
@@ -1,4 +1,4 @@
-import { AsyncKeyAgent, SignBlobResult, Witnesser, util } from '../../src';
+import { AsyncKeyAgent, KeyPurpose, SignBlobResult, Witnesser, util } from '../../src';
 import { Cardano, Serialization } from '@cardano-sdk/core';
 import { HexBlob } from '@cardano-sdk/util';
 
@@ -15,7 +15,7 @@ describe('createBip32Ed25519Witnesser', () => {
   });
 
   it('signBlob is unchanged', async () => {
-    const keyDerivationPath = { index: 0, role: 0 };
+    const keyDerivationPath = { index: 0, purpose: KeyPurpose.STANDARD, role: 0 };
     const blob = HexBlob('abc123');
     const result = {} as SignBlobResult;
     asyncKeyAgent.signBlob.mockResolvedValueOnce(result);
@@ -39,7 +39,7 @@ describe('createBip32Ed25519Witnesser', () => {
       hash: Cardano.TransactionId('3643bb5fe745ba0532977f82ecf54699963c97adef2626f7c780225d218e9ba6')
     };
 
-    const options = { knownAddresses: [], txInKeyPathMap: {} };
+    const options = { knownAddresses: [], purpose: KeyPurpose.STANDARD, txInKeyPathMap: {} };
     const result = new Map();
     asyncKeyAgent.signTransaction.mockResolvedValueOnce(result);
 
diff --git a/packages/key-management/test/util/key.test.ts b/packages/key-management/test/util/key.test.ts
index bf63184d041..6f5922a3dee 100644
--- a/packages/key-management/test/util/key.test.ts
+++ b/packages/key-management/test/util/key.test.ts
@@ -1,4 +1,4 @@
-import { AddressType, GroupedAddress, KeyRole } from '../../src';
+import { AddressType, GroupedAddress, KeyPurpose, KeyRole } from '../../src';
 import { Cardano } from '@cardano-sdk/core';
 import { paymentKeyPathFromGroupedAddress, stakeKeyPathFromGroupedAddress } from '../../src/util';
 
@@ -12,6 +12,7 @@ export const rewardAccount = Cardano.RewardAccount(rewardKey);
 
 const stakeKeyDerivationPath = {
   index: 0,
+  purpose: KeyPurpose.STANDARD,
   role: KeyRole.Stake
 };
 
diff --git a/packages/key-management/test/util/ownSignaturePaths.test.ts b/packages/key-management/test/util/ownSignaturePaths.test.ts
index 55f4b8b3b22..a0f77d8d5e4 100644
--- a/packages/key-management/test/util/ownSignaturePaths.test.ts
+++ b/packages/key-management/test/util/ownSignaturePaths.test.ts
@@ -1,6 +1,6 @@
 /* eslint-disable sonarjs/no-duplicate-string */
 import * as Crypto from '@cardano-sdk/crypto';
-import { AccountKeyDerivationPath, AddressType, GroupedAddress, KeyRole, TxInId, util } from '../../src';
+import { AccountKeyDerivationPath, AddressType, GroupedAddress, KeyPurpose, KeyRole, TxInId, util } from '../../src';
 import { Cardano } from '@cardano-sdk/core';
 
 export const stakeKeyPath = {
@@ -77,9 +77,18 @@ describe('KeyManagement.util.ownSignaturePaths', () => {
 
     expect(
       util.ownSignatureKeyPaths(txBody, knownAddresses, {
-        [TxInId(inputs[0])]: { index: knownAddresses[0].index, role: Number(knownAddresses[0].type) },
-        [TxInId(inputs[1])]: { index: knownAddresses[1].index, role: Number(knownAddresses[1].type) },
-        [TxInId(inputs[2])]: { index: knownAddresses[0].index, role: Number(knownAddresses[0].type) }
+        [TxInId(inputs[0])]: {
+          index: knownAddresses[0].index,
+          role: Number(knownAddresses[0].type)
+        },
+        [TxInId(inputs[1])]: {
+          index: knownAddresses[1].index,
+          role: Number(knownAddresses[1].type)
+        },
+        [TxInId(inputs[2])]: {
+          index: knownAddresses[0].index,
+          role: Number(knownAddresses[0].type)
+        }
       })
     ).toEqual([
       {
@@ -443,7 +452,9 @@ describe('KeyManagement.util.ownSignaturePaths', () => {
         inputs: [{}, {}, {}]
       } as Cardano.TxBody;
 
-      expect(util.ownSignatureKeyPaths(txBody, knownAddresses, {})).toEqual([
+      const addresses = util.ownSignatureKeyPaths(txBody, knownAddresses, {});
+
+      expect(addresses).toEqual([
         { index: 0, role: KeyRole.Stake },
         { index: 1, role: KeyRole.Stake },
         { index: 2, role: KeyRole.Stake },
@@ -511,7 +522,7 @@ describe('KeyManagement.util.ownSignaturePaths', () => {
       } as Cardano.TxBody;
 
       expect(util.ownSignatureKeyPaths(txBody, [knownAddress1], {}, dRepKeyHash)).toEqual([
-        { index: 0, role: KeyRole.DRep }
+        { index: 0, purpose: KeyPurpose.STANDARD, role: KeyRole.DRep }
       ]);
     });
 
@@ -530,7 +541,7 @@ describe('KeyManagement.util.ownSignaturePaths', () => {
       } as Cardano.TxBody;
 
       expect(util.ownSignatureKeyPaths(txBody, [knownAddress1], {}, dRepKeyHash)).toEqual([
-        { index: 0, role: KeyRole.DRep }
+        { index: 0, purpose: KeyPurpose.STANDARD, role: KeyRole.DRep }
       ]);
     });
 
@@ -550,7 +561,7 @@ describe('KeyManagement.util.ownSignaturePaths', () => {
       } as Cardano.TxBody;
 
       expect(util.ownSignatureKeyPaths(txBody, [knownAddress1], {}, dRepKeyHash)).toEqual([
-        { index: 0, role: KeyRole.DRep }
+        { index: 0, purpose: KeyPurpose.STANDARD, role: KeyRole.DRep }
       ]);
     });
 
@@ -571,7 +582,7 @@ describe('KeyManagement.util.ownSignaturePaths', () => {
       } as Cardano.TxBody;
 
       expect(util.ownSignatureKeyPaths(txBody, [knownAddress1], {}, dRepKeyHash)).toEqual([
-        { index: 0, role: KeyRole.DRep }
+        { index: 0, purpose: KeyPurpose.STANDARD, role: KeyRole.DRep }
       ]);
     });
   });
diff --git a/packages/key-management/test/util/stubSignTransaction.test.ts b/packages/key-management/test/util/stubSignTransaction.test.ts
index 95cd8c34900..4802c1e5b0f 100644
--- a/packages/key-management/test/util/stubSignTransaction.test.ts
+++ b/packages/key-management/test/util/stubSignTransaction.test.ts
@@ -1,7 +1,7 @@
 import { Cardano } from '@cardano-sdk/core';
 import { Ed25519PublicKey, Ed25519PublicKeyHex } from '@cardano-sdk/crypto';
 
-import { GroupedAddress, util } from '../../src';
+import { GroupedAddress, KeyPurpose, util } from '../../src';
 
 jest.mock('../../src/util/ownSignatureKeyPaths');
 const { ownSignatureKeyPaths } = jest.requireMock('../../src/util/ownSignatureKeyPaths');
@@ -17,7 +17,7 @@ describe('KeyManagement.util.stubSignTransaction', () => {
     expect(
       (
         await util.stubSignTransaction({
-          context: { dRepPublicKey, knownAddresses, txInKeyPathMap },
+          context: { dRepPublicKey, knownAddresses, purpose: KeyPurpose.STANDARD, txInKeyPathMap },
           txBody
         })
       ).size
@@ -25,7 +25,7 @@ describe('KeyManagement.util.stubSignTransaction', () => {
     expect(
       (
         await util.stubSignTransaction({
-          context: { dRepPublicKey, knownAddresses, txInKeyPathMap },
+          context: { dRepPublicKey, knownAddresses, purpose: KeyPurpose.STANDARD, txInKeyPathMap },
           txBody
         })
       ).size
diff --git a/packages/tx-construction/src/tx-builder/TxBuilder.ts b/packages/tx-construction/src/tx-builder/TxBuilder.ts
index 1126f4374af..3cbfd7549df 100644
--- a/packages/tx-construction/src/tx-builder/TxBuilder.ts
+++ b/packages/tx-construction/src/tx-builder/TxBuilder.ts
@@ -3,6 +3,7 @@ import * as Crypto from '@cardano-sdk/crypto';
 import {
   AddressType,
   Bip32Account,
+  KeyPurpose,
   SignTransactionOptions,
   TransactionSigner,
   WitnessedTx,
@@ -332,6 +333,9 @@ export class GenericTxBuilder implements TxBuilder {
             const extraSigners = this.partialExtraSigners && [...this.partialExtraSigners];
             const partialSigningOptions = this.partialSigningOptions && { ...this.partialSigningOptions, extraSigners };
 
+            // TODO: Not sure about this. What is the best way to pass purpose to TxBuilder?
+            const purpose = KeyPurpose.STANDARD;
+
             if (this.partialAuxiliaryData) {
               this.partialTxBody.auxiliaryDataHash = Cardano.computeAuxiliaryDataHash(this.partialAuxiliaryData);
             }
@@ -429,6 +433,7 @@ export class GenericTxBuilder implements TxBuilder {
                 signingContext: {
                   handleResolutions: this.#handleResolutions,
                   knownAddresses: ownAddresses,
+                  purpose,
                   txInKeyPathMap: await util.createTxInKeyPathMap(body, ownAddresses, this.#dependencies.inputResolver)
                 },
                 signingOptions: { ...partialSigningOptions, extraSigners },
diff --git a/packages/tx-construction/src/tx-builder/initializeTx.ts b/packages/tx-construction/src/tx-builder/initializeTx.ts
index 077f1d223a9..b58bf16f58f 100644
--- a/packages/tx-construction/src/tx-builder/initializeTx.ts
+++ b/packages/tx-construction/src/tx-builder/initializeTx.ts
@@ -1,13 +1,12 @@
-import { StaticChangeAddressResolver, roundRobinRandomImprove } from '@cardano-sdk/input-selection';
-
 import { Cardano, Serialization } from '@cardano-sdk/core';
 import { GreedyTxEvaluator } from './GreedyTxEvaluator';
 import { InitializeTxProps, InitializeTxResult } from '../types';
+import { KeyPurpose, util } from '@cardano-sdk/key-management';
 import { RedeemersByType, defaultSelectionConstraints } from '../input-selection';
+import { StaticChangeAddressResolver, roundRobinRandomImprove } from '@cardano-sdk/input-selection';
 import { TxBuilderDependencies } from './types';
 import { createPreInputSelectionTxBody, includeChangeAndInputs } from '../createTransactionInternals';
 import { ensureValidityInterval } from '../ensureValidityInterval';
-import { util } from '@cardano-sdk/key-management';
 
 export const initializeTx = async (
   props: InitializeTxProps,
@@ -88,6 +87,7 @@ export const initializeTx = async (
         dRepPublicKey,
         handleResolutions: props.handleResolutions ?? [],
         knownAddresses: addresses,
+        purpose: KeyPurpose.STANDARD,
         txInKeyPathMap: await util.createTxInKeyPathMap(unwitnessedTx.body, addresses, inputResolver)
       };
 
diff --git a/packages/tx-construction/test/tx-builder/TxBuilder.bootstrap.test.ts b/packages/tx-construction/test/tx-builder/TxBuilder.bootstrap.test.ts
index ef102c1569c..c90cd173a5d 100644
--- a/packages/tx-construction/test/tx-builder/TxBuilder.bootstrap.test.ts
+++ b/packages/tx-construction/test/tx-builder/TxBuilder.bootstrap.test.ts
@@ -1,4 +1,4 @@
-import { AddressType, Bip32Account, InMemoryKeyAgent, util } from '@cardano-sdk/key-management';
+import { AddressType, Bip32Account, InMemoryKeyAgent, KeyPurpose, util } from '@cardano-sdk/key-management';
 import { Cardano } from '@cardano-sdk/core';
 import { GenericTxBuilder, OutputValidation, TxBuilderProviders } from '../../src';
 import { SodiumBip32Ed25519 } from '@cardano-sdk/crypto';
@@ -35,7 +35,8 @@ describe.each([
         {
           chainId: Cardano.ChainIds.Preview,
           getPassphrase: async () => Buffer.from([]),
-          mnemonicWords: util.generateMnemonicWords()
+          mnemonicWords: util.generateMnemonicWords(),
+          purpose: KeyPurpose.STANDARD
         },
         { bip32Ed25519: new SodiumBip32Ed25519(), logger }
       )
diff --git a/packages/tx-construction/test/tx-builder/TxBuilder.test.ts b/packages/tx-construction/test/tx-builder/TxBuilder.test.ts
index 6b42ad3a369..a7e432e660f 100644
--- a/packages/tx-construction/test/tx-builder/TxBuilder.test.ts
+++ b/packages/tx-construction/test/tx-builder/TxBuilder.test.ts
@@ -7,6 +7,7 @@ import {
   Bip32Account,
   GroupedAddress,
   InMemoryKeyAgent,
+  KeyPurpose,
   SignTransactionOptions,
   TransactionSigner,
   util
@@ -75,7 +76,8 @@ describe.each([
       {
         chainId: Cardano.ChainIds.Preprod,
         getPassphrase: async () => Buffer.from('passphrase'),
-        mnemonicWords: util.generateMnemonicWords()
+        mnemonicWords: util.generateMnemonicWords(),
+        purpose: KeyPurpose.STANDARD
       },
       { bip32Ed25519: new Crypto.SodiumBip32Ed25519(), logger: dummyLogger }
     );
diff --git a/packages/tx-construction/test/tx-builder/TxBuilderDelegatePortfolio.test.ts b/packages/tx-construction/test/tx-builder/TxBuilderDelegatePortfolio.test.ts
index f4eef6e2260..c3752371bd4 100644
--- a/packages/tx-construction/test/tx-builder/TxBuilderDelegatePortfolio.test.ts
+++ b/packages/tx-construction/test/tx-builder/TxBuilderDelegatePortfolio.test.ts
@@ -1,6 +1,13 @@
 /* eslint-disable sonarjs/no-duplicate-string */
 import * as Crypto from '@cardano-sdk/crypto';
-import { AddressType, Bip32Account, GroupedAddress, InMemoryKeyAgent, util } from '@cardano-sdk/key-management';
+import {
+  AddressType,
+  Bip32Account,
+  GroupedAddress,
+  InMemoryKeyAgent,
+  KeyPurpose,
+  util
+} from '@cardano-sdk/key-management';
 import { Cardano } from '@cardano-sdk/core';
 import {
   GenericTxBuilder,
@@ -144,7 +151,8 @@ describe('TxBuilder/delegatePortfolio', () => {
       {
         chainId: Cardano.ChainIds.Preprod,
         getPassphrase: async () => Buffer.from('passphrase'),
-        mnemonicWords: util.generateMnemonicWords()
+        mnemonicWords: util.generateMnemonicWords(),
+        purpose: KeyPurpose.STANDARD
       },
       { bip32Ed25519: new Crypto.SodiumBip32Ed25519(), logger: dummyLogger }
     );
diff --git a/packages/tx-construction/test/tx-builder/TxBuilderPlutusScripts.test.ts b/packages/tx-construction/test/tx-builder/TxBuilderPlutusScripts.test.ts
index 52672e73777..c1b4869117f 100644
--- a/packages/tx-construction/test/tx-builder/TxBuilderPlutusScripts.test.ts
+++ b/packages/tx-construction/test/tx-builder/TxBuilderPlutusScripts.test.ts
@@ -1,6 +1,6 @@
 /* eslint-disable sonarjs/no-duplicate-string */
 import * as Crypto from '@cardano-sdk/crypto';
-import { AddressType, Bip32Account, InMemoryKeyAgent, util } from '@cardano-sdk/key-management';
+import { AddressType, Bip32Account, InMemoryKeyAgent, KeyPurpose, util } from '@cardano-sdk/key-management';
 import { Cardano, coalesceValueQuantities } from '@cardano-sdk/core';
 import {
   DatumResolver,
@@ -199,7 +199,8 @@ describe('TxBuilder/plutusScripts', () => {
       {
         chainId: Cardano.ChainIds.Preprod,
         getPassphrase: async () => Buffer.from('passphrase'),
-        mnemonicWords: util.generateMnemonicWords()
+        mnemonicWords: util.generateMnemonicWords(),
+        purpose: KeyPurpose.STANDARD
       },
       { bip32Ed25519: new Crypto.SodiumBip32Ed25519(), logger: dummyLogger }
     );
diff --git a/packages/wallet/src/Wallets/BaseWallet.ts b/packages/wallet/src/Wallets/BaseWallet.ts
index ef6a7febea9..420b62b697f 100644
--- a/packages/wallet/src/Wallets/BaseWallet.ts
+++ b/packages/wallet/src/Wallets/BaseWallet.ts
@@ -87,7 +87,15 @@ import {
   tap,
   throwError
 } from 'rxjs';
-import { Bip32Account, GroupedAddress, WitnessedTx, Witnesser, cip8, util } from '@cardano-sdk/key-management';
+import {
+  Bip32Account,
+  GroupedAddress,
+  KeyPurpose,
+  WitnessedTx,
+  Witnesser,
+  cip8,
+  util
+} from '@cardano-sdk/key-management';
 import { ChangeAddressResolver, InputSelector, roundRobinRandomImprove } from '@cardano-sdk/input-selection';
 import { Cip30DataSignature } from '@cardano-sdk/dapp-connector';
 import { Ed25519PublicKey, Ed25519PublicKeyHex } from '@cardano-sdk/crypto';
@@ -601,6 +609,7 @@ export class BaseWallet implements ObservableWallet {
       ...signingContext,
       dRepPublicKey,
       knownAddresses,
+      purpose: signingContext?.purpose ?? KeyPurpose.STANDARD,
       txInKeyPathMap: await util.createTxInKeyPathMap(tx.body, knownAddresses, this.util)
     };
 
diff --git a/packages/wallet/test/hardware/ledger/LedgerKeyAgent.integration.test.ts b/packages/wallet/test/hardware/ledger/LedgerKeyAgent.integration.test.ts
index 84ebd7167ad..4a2ad4d6a0d 100644
--- a/packages/wallet/test/hardware/ledger/LedgerKeyAgent.integration.test.ts
+++ b/packages/wallet/test/hardware/ledger/LedgerKeyAgent.integration.test.ts
@@ -1,6 +1,5 @@
 import * as Crypto from '@cardano-sdk/crypto';
-
-import { Bip32Account, CommunicationType, KeyAgent, util } from '@cardano-sdk/key-management';
+import { Bip32Account, CommunicationType, KeyAgent, KeyPurpose, util } from '@cardano-sdk/key-management';
 import { Cardano } from '@cardano-sdk/core';
 import { LedgerKeyAgent } from '@cardano-sdk/hardware-ledger';
 import { ObservableWallet, createPersonalWallet, restoreKeyAgent } from '../../../src';
@@ -52,7 +51,8 @@ describe('LedgerKeyAgent+BaseWallet', () => {
     const freshKeyAgent = await LedgerKeyAgent.createWithDevice(
       {
         chainId: Cardano.ChainIds.Preprod,
-        communicationType: CommunicationType.Node
+        communicationType: CommunicationType.Node,
+        purpose: KeyPurpose.STANDARD
       },
       keyAgentDependencies
     );
diff --git a/packages/wallet/test/hardware/ledger/LedgerKeyAgent.test.ts b/packages/wallet/test/hardware/ledger/LedgerKeyAgent.test.ts
index 1591769e689..c0248152839 100644
--- a/packages/wallet/test/hardware/ledger/LedgerKeyAgent.test.ts
+++ b/packages/wallet/test/hardware/ledger/LedgerKeyAgent.test.ts
@@ -4,6 +4,7 @@ import {
   AddressType,
   Bip32Account,
   CommunicationType,
+  KeyPurpose,
   SerializableLedgerKeyAgentData,
   util
 } from '@cardano-sdk/key-management';
@@ -77,7 +78,8 @@ describe('LedgerKeyAgent', () => {
       ledgerKeyAgent = await LedgerKeyAgent.createWithDevice(
         {
           chainId: Cardano.ChainIds.Preprod,
-          communicationType: CommunicationType.Node
+          communicationType: CommunicationType.Node,
+          purpose: KeyPurpose.STANDARD
         },
         { bip32Ed25519: new Crypto.SodiumBip32Ed25519(), logger }
       );
@@ -93,7 +95,8 @@ describe('LedgerKeyAgent', () => {
           accountIndex: 5,
           chainId: Cardano.ChainIds.Preprod,
           communicationType: CommunicationType.Node,
-          deviceConnection: ledgerKeyAgent.deviceConnection
+          deviceConnection: ledgerKeyAgent.deviceConnection,
+          purpose: KeyPurpose.STANDARD
         },
         mockKeyAgentDependencies()
       );
@@ -206,7 +209,11 @@ describe('LedgerKeyAgent', () => {
               ...txInternals,
               hash: 'non-matching' as unknown as Cardano.TransactionId
             },
-            { knownAddresses: await firstValueFrom(wallet.addresses$), txInKeyPathMap: {} }
+            {
+              knownAddresses: await firstValueFrom(wallet.addresses$),
+              purpose: KeyPurpose.STANDARD,
+              txInKeyPathMap: {}
+            }
           )
         ).rejects.toThrow();
       });
diff --git a/packages/wallet/test/hardware/trezor/TrezorKeyAgent.integration.test.ts b/packages/wallet/test/hardware/trezor/TrezorKeyAgent.integration.test.ts
index ee53d944c7c..4aa4a5e5f9f 100644
--- a/packages/wallet/test/hardware/trezor/TrezorKeyAgent.integration.test.ts
+++ b/packages/wallet/test/hardware/trezor/TrezorKeyAgent.integration.test.ts
@@ -1,5 +1,5 @@
 import * as Crypto from '@cardano-sdk/crypto';
-import { Bip32Account, CommunicationType, KeyAgent, util } from '@cardano-sdk/key-management';
+import { Bip32Account, CommunicationType, KeyAgent, KeyPurpose, util } from '@cardano-sdk/key-management';
 import { Cardano } from '@cardano-sdk/core';
 import { ObservableWallet, createPersonalWallet, restoreKeyAgent } from '../../../src';
 import { TrezorKeyAgent } from '@cardano-sdk/hardware-trezor';
@@ -51,6 +51,7 @@ describe('TrezorKeyAgent+BaseWallet', () => {
     const freshKeyAgent = await TrezorKeyAgent.createWithDevice(
       {
         chainId: Cardano.ChainIds.Preprod,
+        purpose: KeyPurpose.STANDARD,
         trezorConfig: {
           communicationType: CommunicationType.Node,
           manifest: {
diff --git a/packages/wallet/test/hardware/trezor/TrezorKeyAgent.test.ts b/packages/wallet/test/hardware/trezor/TrezorKeyAgent.test.ts
index 2917020fba9..349ea6d2e98 100644
--- a/packages/wallet/test/hardware/trezor/TrezorKeyAgent.test.ts
+++ b/packages/wallet/test/hardware/trezor/TrezorKeyAgent.test.ts
@@ -3,6 +3,7 @@ import {
   AddressType,
   Bip32Account,
   CommunicationType,
+  KeyPurpose,
   SerializableTrezorKeyAgentData,
   util
 } from '@cardano-sdk/key-management';
@@ -36,6 +37,7 @@ describe('TrezorKeyAgent', () => {
     trezorKeyAgent = await TrezorKeyAgent.createWithDevice(
       {
         chainId: Cardano.ChainIds.Preprod,
+        purpose: KeyPurpose.STANDARD,
         trezorConfig
       },
       { bip32Ed25519: new Crypto.SodiumBip32Ed25519(), logger }
@@ -300,7 +302,7 @@ describe('TrezorKeyAgent', () => {
             body: txInternals.body,
             hash: 'non-matching' as unknown as Cardano.TransactionId
           },
-          { knownAddresses: await firstValueFrom(wallet.addresses$), txInKeyPathMap: {} }
+          { knownAddresses: await firstValueFrom(wallet.addresses$), purpose: KeyPurpose.STANDARD, txInKeyPathMap: {} }
         )
       ).rejects.toThrow();
     });
@@ -441,6 +443,7 @@ describe('TrezorKeyAgent', () => {
       {
         accountIndex: 5,
         chainId: Cardano.ChainIds.Preprod,
+        purpose: KeyPurpose.STANDARD,
         trezorConfig
       },
       mockKeyAgentDependencies()
diff --git a/packages/wallet/test/services/KeyAgent/restoreKeyAgent.test.ts b/packages/wallet/test/services/KeyAgent/restoreKeyAgent.test.ts
index 94c046608c6..bc4bb676c69 100644
--- a/packages/wallet/test/services/KeyAgent/restoreKeyAgent.test.ts
+++ b/packages/wallet/test/services/KeyAgent/restoreKeyAgent.test.ts
@@ -5,6 +5,7 @@ import {
   GetPassphrase,
   KeyAgentDependencies,
   KeyAgentType,
+  KeyPurpose,
   SerializableInMemoryKeyAgentData,
   SerializableLedgerKeyAgentData,
   SerializableTrezorKeyAgentData,
@@ -41,7 +42,8 @@ describe('KeyManagement/restoreKeyAgent', () => {
       accountIndex: 0,
       chainId: Cardano.ChainIds.Preview,
       encryptedRootPrivateKeyBytes,
-      extendedAccountPublicKey
+      extendedAccountPublicKey,
+      purpose: KeyPurpose.STANDARD
     };
     // eslint-disable-next-line unicorn/consistent-function-scoping
     const getPassphrase: GetPassphrase = async () => Buffer.from('password');
@@ -76,7 +78,8 @@ describe('KeyManagement/restoreKeyAgent', () => {
       extendedAccountPublicKey: Crypto.Bip32PublicKeyHex(
         // eslint-disable-next-line max-len
         'fc5ab25e830b67c47d0a17411bf7fdabf711a597fb6cf04102734b0a2934ceaaa65ff5e7c52498d52c07b8ddfcd436fc2b4d2775e2984a49d0c79f65ceee4779'
-      )
+      ),
+      purpose: KeyPurpose.STANDARD
     };
 
     it('can restore key manager from valid data', async () => {
@@ -94,6 +97,7 @@ describe('KeyManagement/restoreKeyAgent', () => {
         // eslint-disable-next-line max-len
         'fc5ab25e830b67c47d0a17411bf7fdabf711a597fb6cf04102734b0a2934ceaaa65ff5e7c52498d52c07b8ddfcd436fc2b4d2775e2984a49d0c79f65ceee4779'
       ),
+      purpose: KeyPurpose.STANDARD,
       trezorConfig: {
         communicationType: CommunicationType.Node,
         manifest: {
diff --git a/packages/wallet/test/util.ts b/packages/wallet/test/util.ts
index 4ffe4bd3e20..7f8fa2b9f64 100644
--- a/packages/wallet/test/util.ts
+++ b/packages/wallet/test/util.ts
@@ -1,6 +1,6 @@
 import * as Crypto from '@cardano-sdk/crypto';
 import { Cardano, Serialization, TxCBOR } from '@cardano-sdk/core';
-import { GroupedAddress, InMemoryKeyAgent, WitnessedTx, util } from '@cardano-sdk/key-management';
+import { GroupedAddress, InMemoryKeyAgent, KeyPurpose, WitnessedTx, util } from '@cardano-sdk/key-management';
 import { HexBlob } from '@cardano-sdk/util';
 import { Observable, catchError, filter, firstValueFrom, throwError, timeout } from 'rxjs';
 import { ObservableWallet, OutgoingTx, WalletUtil } from '../src';
@@ -74,7 +74,8 @@ export const createAsyncKeyAgent = async () =>
       {
         chainId: Cardano.ChainIds.Preview,
         getPassphrase: async () => Buffer.from([]),
-        mnemonicWords: util.generateMnemonicWords()
+        mnemonicWords: util.generateMnemonicWords(),
+        purpose: KeyPurpose.STANDARD
       },
       {
         bip32Ed25519: new SodiumBip32Ed25519(),
@@ -103,6 +104,7 @@ export const signTx = async ({
     ),
     {
       knownAddresses,
+      purpose: KeyPurpose.STANDARD,
       txInKeyPathMap: await util.createTxInKeyPathMap(tx.body, knownAddresses, walletUtil)
     }
   );
diff --git a/packages/web-extension/src/keyAgent/util.ts b/packages/web-extension/src/keyAgent/util.ts
index 03adbf6d9de..05995409a8a 100644
--- a/packages/web-extension/src/keyAgent/util.ts
+++ b/packages/web-extension/src/keyAgent/util.ts
@@ -10,6 +10,7 @@ export const keyAgentProperties: RemoteApiProperties<AsyncKeyAgent> = {
   getBip32Ed25519: RemoteApiPropertyType.MethodReturningPromise,
   getChainId: RemoteApiPropertyType.MethodReturningPromise,
   getExtendedAccountPublicKey: RemoteApiPropertyType.MethodReturningPromise,
+  getKeyPurpose: RemoteApiPropertyType.MethodReturningPromise,
   signBlob: RemoteApiPropertyType.MethodReturningPromise,
   signTransaction: RemoteApiPropertyType.MethodReturningPromise
 };
diff --git a/packages/web-extension/src/walletManager/SigningCoordinator/SigningCoordinator.ts b/packages/web-extension/src/walletManager/SigningCoordinator/SigningCoordinator.ts
index 6e8f16b0934..280ea6ca2da 100644
--- a/packages/web-extension/src/walletManager/SigningCoordinator/SigningCoordinator.ts
+++ b/packages/web-extension/src/walletManager/SigningCoordinator/SigningCoordinator.ts
@@ -143,6 +143,8 @@ export class SigningCoordinator<WalletMetadata extends {}, AccountMetadata exten
         return reject(new errors.ProofGenerationError(`Account not found: ${request.requestContext.accountIndex}`));
       }
 
+      const purpose = request.requestContext.purpose;
+
       const commonRequestProps = {
         ...request,
         reject: async (reason: string) => reject(new errors.AuthenticationError(reason))
@@ -164,7 +166,8 @@ export class SigningCoordinator<WalletMetadata extends {}, AccountMetadata exten
                             ...Buffer.from(wallet.encryptedSecrets.rootPrivateKeyBytes, 'hex')
                           ],
                           extendedAccountPublicKey: account.extendedAccountPublicKey,
-                          getPassphrase: async () => passphrase
+                          getPassphrase: async () => passphrase,
+                          purpose
                         })
                       );
                       clearPassphrase(passphrase);
@@ -190,12 +193,14 @@ export class SigningCoordinator<WalletMetadata extends {}, AccountMetadata exten
                             accountIndex: request.requestContext.accountIndex,
                             chainId: request.requestContext.chainId,
                             communicationType: this.#hwOptions.communicationType,
-                            extendedAccountPublicKey: account.extendedAccountPublicKey
+                            extendedAccountPublicKey: account.extendedAccountPublicKey,
+                            purpose
                           })
                         : this.#keyAgentFactory.Trezor({
                             accountIndex: request.requestContext.accountIndex,
                             chainId: request.requestContext.chainId,
                             extendedAccountPublicKey: account.extendedAccountPublicKey,
+                            purpose,
                             trezorConfig: this.#hwOptions
                           })
                     ).catch((error) => throwMaybeWrappedWithNoRejectError(error, options)),
diff --git a/packages/web-extension/src/walletManager/SigningCoordinator/types.ts b/packages/web-extension/src/walletManager/SigningCoordinator/types.ts
index 2b41ca06dde..9f05d7a2917 100644
--- a/packages/web-extension/src/walletManager/SigningCoordinator/types.ts
+++ b/packages/web-extension/src/walletManager/SigningCoordinator/types.ts
@@ -1,5 +1,6 @@
 import {
   AccountKeyDerivationPath,
+  KeyPurpose,
   SignBlobResult,
   SignDataContext,
   SignTransactionContext,
@@ -14,6 +15,7 @@ export type RequestContext<WalletMetadata extends {}, AccountMetadata extends {}
   wallet: AnyBip32Wallet<WalletMetadata, AccountMetadata>;
   accountIndex: number;
   chainId: Cardano.ChainId;
+  purpose: KeyPurpose;
 };
 
 export type RequestBase<WalletMetadata extends {}, AccountMetadata extends {}> = {
diff --git a/packages/web-extension/src/walletManager/util.ts b/packages/web-extension/src/walletManager/util.ts
index efee2940dba..bd976576771 100644
--- a/packages/web-extension/src/walletManager/util.ts
+++ b/packages/web-extension/src/walletManager/util.ts
@@ -2,6 +2,7 @@ import * as Crypto from '@cardano-sdk/crypto';
 import {
   AccountKeyDerivationPath,
   AsyncKeyAgent,
+  KeyPurpose,
   SignDataContext,
   SignTransactionContext,
   TransactionSigner,
@@ -283,6 +284,7 @@ const createScriptWitness = async <WalletMetadata extends {}, AccountMetadata ex
       {
         accountIndex: signer.accountIndex,
         chainId,
+        purpose: context.purpose,
         wallet: signerWallet
       }
     );
@@ -305,7 +307,11 @@ export const buildBip32Witnesser = <WalletMetadata extends { name: string }, Acc
   accountIndex?: number
 ): Witnesser =>
   <Witnesser>{
-    signBlob: async (derivationPath: AccountKeyDerivationPath, blob: HexBlob, context: SignDataContext) =>
+    signBlob: async (
+      derivationPath: AccountKeyDerivationPath & { purpose: KeyPurpose },
+      blob: HexBlob,
+      context: SignDataContext
+    ) =>
       await signingCoordinatorApi.signData(
         {
           blob,
@@ -315,6 +321,7 @@ export const buildBip32Witnesser = <WalletMetadata extends { name: string }, Acc
         {
           accountIndex: accountIndex!,
           chainId,
+          purpose: derivationPath.purpose,
           wallet
         }
       ),
@@ -341,6 +348,7 @@ export const buildBip32Witnesser = <WalletMetadata extends { name: string }, Acc
               {
                 accountIndex: accountIndex!,
                 chainId,
+                purpose: context.purpose,
                 wallet
               }
             );
diff --git a/packages/web-extension/test/walletManager/SigningCoordinator.test.ts b/packages/web-extension/test/walletManager/SigningCoordinator.test.ts
index 12826e6a0dd..37e4d3a0b82 100644
--- a/packages/web-extension/test/walletManager/SigningCoordinator.test.ts
+++ b/packages/web-extension/test/walletManager/SigningCoordinator.test.ts
@@ -2,6 +2,7 @@ import {
   AccountKeyDerivationPath,
   CommunicationType,
   InMemoryKeyAgent,
+  KeyPurpose,
   KeyRole,
   SignBlobResult,
   SignDataContext,
@@ -33,6 +34,7 @@ describe('SigningCoordinator', () => {
   const requestContext = {
     accountIndex: 0,
     chainId: Cardano.ChainIds.Preprod,
+    purpose: KeyPurpose.STANDARD,
     wallet
   };
   let passphrase: Uint8Array;
@@ -69,7 +71,11 @@ describe('SigningCoordinator', () => {
       // eslint-disable-next-line max-len
       '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'
     );
-    const signContext: SignTransactionContext = { knownAddresses: [], txInKeyPathMap: {} };
+    const signContext: SignTransactionContext = {
+      knownAddresses: [],
+      purpose: KeyPurpose.STANDARD,
+      txInKeyPathMap: {}
+    };
 
     it('rejects given invalid tx cbor', async () => {
       await expect(