diff --git a/go.mod b/go.mod
index fd864cf223..108e697191 100644
--- a/go.mod
+++ b/go.mod
@@ -38,6 +38,7 @@ require (
 	github.com/labstack/echo/v4 v4.11.2
 	github.com/labstack/gommon v0.4.0
 	github.com/libp2p/go-libp2p v0.30.0
+	github.com/minio/blake2b-simd v0.0.0-20160723061019-3f5f724cb5b1
 	github.com/mr-tron/base58 v1.2.0
 	github.com/multiformats/go-multiaddr v0.11.0
 	github.com/pangpanglabs/echoswagger/v2 v2.4.1
@@ -49,6 +50,7 @@ require (
 	github.com/spf13/pflag v1.0.5
 	github.com/stretchr/testify v1.8.4
 	github.com/wasmerio/wasmer-go v1.0.4
+	github.com/wollac/iota-crypto-demo v0.0.0-20221117162917-b10619eccb98
 	go.dedis.ch/kyber/v3 v3.1.0
 	go.uber.org/atomic v1.11.0
 	go.uber.org/dig v1.17.1
@@ -216,4 +218,4 @@ require (
 	gopkg.in/yaml.v2 v2.4.0 // indirect
 	lukechampine.com/blake3 v1.2.1 // indirect
 	rsc.io/tmplfunc v0.0.3 // indirect
-)
+)
\ No newline at end of file
diff --git a/go.sum b/go.sum
index df2bee5642..1a56782a0f 100644
--- a/go.sum
+++ b/go.sum
@@ -1072,4 +1072,4 @@ rsc.io/tmplfunc v0.0.3 h1:53XFQh69AfOa8Tw0Jm7t+GV7KZhOi6jzsCzTtKbMvzU=
 rsc.io/tmplfunc v0.0.3/go.mod h1:AG3sTPzElb1Io3Yg4voV9AGZJuleGAwaVRxL9M49PhA=
 sigs.k8s.io/yaml v1.2.0/go.mod h1:yfXDCHCao9+ENCvLSE62v9VSji2MKu5jeNfTrofGhJc=
 sourcegraph.com/sourcegraph/go-diff v0.5.0/go.mod h1:kuch7UrkMzY0X+p9CRK03kfuPQ2zzQcaEFbx8wA8rck=
-sourcegraph.com/sqs/pbtypes v0.0.0-20180604144634-d3ebe8f20ae4/go.mod h1:ketZ/q3QxT9HOBeFhu6RdvsftgpsbFHBF5Cas6cDKZ0=
+sourcegraph.com/sqs/pbtypes v0.0.0-20180604144634-d3ebe8f20ae4/go.mod h1:ketZ/q3QxT9HOBeFhu6RdvsftgpsbFHBF5Cas6cDKZ0=
\ No newline at end of file
diff --git a/tools/wasp-cli/cli/config/config.go b/tools/wasp-cli/cli/config/config.go
index 3be7e2be02..198539564f 100644
--- a/tools/wasp-cli/cli/config/config.go
+++ b/tools/wasp-cli/cli/config/config.go
@@ -205,6 +205,10 @@ func GetChain(name string) isc.ChainID {
 	return chainID
 }
 
+func GetUseLegacyDerivation() bool {
+	return viper.GetBool("wallet.useLegacyDerivation")
+}
+
 func GetWalletSchemeString() string {
 	return viper.GetString("wallet.scheme")
 }
diff --git a/tools/wasp-cli/cli/wallet/providers/keychain.go b/tools/wasp-cli/cli/wallet/providers/keychain.go
index 8ba9838e99..fd70ebac15 100644
--- a/tools/wasp-cli/cli/wallet/providers/keychain.go
+++ b/tools/wasp-cli/cli/wallet/providers/keychain.go
@@ -27,7 +27,8 @@ func LoadKeyChain(addressIndex uint32) wallets.Wallet {
 	seed, err := config.GetKeyChain().GetSeed()
 	log.Check(err)
 
-	keyPair := cryptolib.KeyPairFromSeed(seed.SubSeed(uint64(addressIndex)))
+	useLegacyDerivation := config.GetUseLegacyDerivation()
+	keyPair := cryptolib.KeyPairFromSeed(cryptolib.SubSeed(seed[:], uint64(addressIndex), useLegacyDerivation))
 
 	return newInMemoryWallet(keyPair, addressIndex)
 }
diff --git a/tools/wasp-cli/cli/wallet/providers/stronghold.go b/tools/wasp-cli/cli/wallet/providers/stronghold.go
index 568fcd8767..d21bc9d025 100644
--- a/tools/wasp-cli/cli/wallet/providers/stronghold.go
+++ b/tools/wasp-cli/cli/wallet/providers/stronghold.go
@@ -73,9 +73,12 @@ func MigrateToStrongholdWallet(sdk *walletsdk.IOTASDK, seed cryptolib.Seed) {
 	unlockPassword := cli.ReadPasswordFromStdin()
 	log.Printf("\n")
 
-	s := seed.SubSeed(0)
+	useLegacyDerivation := config.GetUseLegacyDerivation()
+	s := cryptolib.SubSeed(seed[:], 0, useLegacyDerivation)
+
 	mnemonicStr, err := bip39.NewMnemonic(s[:])
 	log.Check(err)
+
 	mnemonic := memguard.NewEnclave([]byte(mnemonicStr))
 
 	createNewStrongholdWallet(sdk, mnemonic, unlockPassword)
diff --git a/tools/wasp-cli/cli/wallet/wallet.go b/tools/wasp-cli/cli/wallet/wallet.go
index a98c77aabc..db220a582f 100644
--- a/tools/wasp-cli/cli/wallet/wallet.go
+++ b/tools/wasp-cli/cli/wallet/wallet.go
@@ -96,19 +96,6 @@ func Load() wallets.Wallet {
 	}
 
 	return nil
-	seedHex := viper.GetString("wallet.seed")
-
-	useLegacyDerivation := viper.GetBool("wallet.useLegacyDerivation")
-	if seedHex == "" {
-		log.Fatal("call `init` first")
-	}
-
-	masterSeed, err := iotago.DecodeHex(seedHex)
-	log.Check(err)
-
-	kp := cryptolib.KeyPairFromSeed(cryptolib.SubSeed(masterSeed, uint64(AddressIndex), useLegacyDerivation))
-
-	return &Wallet{KeyPair: kp, AddressIndex: AddressIndex}
 }
 
 func InitWallet() {
diff --git a/tools/wasp-cli/go.mod b/tools/wasp-cli/go.mod
index 243a0fcc5f..eb24ff1676 100644
--- a/tools/wasp-cli/go.mod
+++ b/tools/wasp-cli/go.mod
@@ -146,6 +146,7 @@ require (
 	github.com/miekg/dns v1.1.55 // indirect
 	github.com/mikioh/tcpinfo v0.0.0-20190314235526-30a79bb1804b // indirect
 	github.com/mikioh/tcpopt v0.0.0-20190314235656-172688c1accc // indirect
+	github.com/minio/blake2b-simd v0.0.0-20160723061019-3f5f724cb5b1 // indirect
 	github.com/minio/sha256-simd v1.0.1 // indirect
 	github.com/mitchellh/copystructure v1.2.0 // indirect
 	github.com/mitchellh/mapstructure v1.5.0 // indirect
@@ -204,6 +205,7 @@ require (
 	github.com/valyala/bytebufferpool v1.0.0 // indirect
 	github.com/valyala/fasttemplate v1.2.2 // indirect
 	github.com/wasmerio/wasmer-go v1.0.4 // indirect
+	github.com/wollac/iota-crypto-demo v0.0.0-20221117162917-b10619eccb98 // indirect
 	github.com/yusufpapurcu/wmi v1.2.3 // indirect
 	go.dedis.ch/fixbuf v1.0.3 // indirect
 	go.dedis.ch/kyber/v3 v3.1.0 // indirect