diff --git a/electrum/base_wizard.py b/electrum/base_wizard.py
index fdaa96933..3a22a0c80 100644
--- a/electrum/base_wizard.py
+++ b/electrum/base_wizard.py
@@ -545,7 +545,7 @@ class BaseWizard(Logger):
 
     def create_keystore(self, seed, passphrase):
         k = keystore.from_seed(seed, passphrase, self.wallet_type == 'multisig')
-        if self.wallet_type == 'standard' and self.seed_type == 'segwit':
+        if k.can_have_deterministic_lightning_xprv():
             self.data['lightning_xprv'] = k.get_lightning_xprv(None)
         self.on_keystore(k)
 
diff --git a/electrum/gui/kivy/main_window.py b/electrum/gui/kivy/main_window.py
index 57c824361..ba5d668ec 100644
--- a/electrum/gui/kivy/main_window.py
+++ b/electrum/gui/kivy/main_window.py
@@ -1421,23 +1421,26 @@ class ElectrumWindow(App, Logger):
                             "This means that you must save a backup of your wallet everytime you create a new channel.\n\n"
                             "If you want to have recoverable channels, you must create a new wallet with an Electrum seed")
                 self.show_info(msg)
-        else:
-            if self.wallet.can_have_lightning():
-                root.dismiss()
+        elif self.wallet.can_have_lightning():
+            root.dismiss()
+            if self.wallet.can_have_deterministic_lightning():
+                msg = messages.MSG_LIGHTNING_SCB_WARNING + "\n" + _("Create lightning keys?")
+            else:
                 msg = _(
                     "Warning: this wallet type does not support channel recovery from seed. "
                     "You will need to backup your wallet everytime you create a new wallet. "
                     "Create lightning keys?")
-                d = Question(msg, self._enable_lightning, title=_('Enable Lightning?'))
-                d.open()
-            else:
-                pass
+            d = Question(msg, self._enable_lightning, title=_('Enable Lightning?'))
+            d.open()
 
     def _enable_lightning(self, b):
         if not b:
             return
+        self.protected(_("Create lightning keys?"), self.__enable_lightning, ())
+
+    def __enable_lightning(self, password):
         wallet_path = self.get_wallet_path()
-        self.wallet.init_lightning()
+        self.wallet.init_lightning(password=password)
         self.show_info(_('Lightning keys have been initialized.'))
         self.stop_wallet()
         self.load_wallet_by_name(wallet_path)
diff --git a/electrum/gui/qt/main_window.py b/electrum/gui/qt/main_window.py
index 2779b6d79..481cd5adf 100644
--- a/electrum/gui/qt/main_window.py
+++ b/electrum/gui/qt/main_window.py
@@ -2386,12 +2386,21 @@ class ElectrumWindow(QMainWindow, MessageBoxMixin, Logger):
             self.set_contact(line2.text(), line1.text())
 
     def init_lightning_dialog(self):
-        if self.question(_(
+        assert not self.wallet.has_lightning()
+        if self.wallet.can_have_deterministic_lightning():
+            msg = messages.MSG_LIGHTNING_SCB_WARNING + "\n" + _("Create lightning keys?")
+        else:
+            msg = _(
                 "Warning: this wallet type does not support channel recovery from seed. "
                 "You will need to backup your wallet everytime you create a new wallet. "
-                "Create lightning keys?")):
-            self.wallet.init_lightning()
-            self.show_message("Lightning keys created. Please restart Electrum")
+                "Create lightning keys?")
+        if self.question(msg):
+            self._init_lightning_dialog()
+
+    @protected
+    def _init_lightning_dialog(self, *, password):
+        self.wallet.init_lightning(password=password)
+        self.show_message("Lightning keys created. Please restart Electrum")
 
     def show_wallet_info(self):
         dialog = WindowModalDialog(self, _("Wallet Information"))
@@ -2400,7 +2409,12 @@ class ElectrumWindow(QMainWindow, MessageBoxMixin, Logger):
         wallet_type = self.wallet.db.get('wallet_type', '')
         if self.wallet.is_watching_only():
             wallet_type += ' [{}]'.format(_('watching-only'))
-        seed_available = _('True') if self.wallet.has_seed() else _('False')
+        seed_available = _('False')
+        if self.wallet.has_seed():
+            seed_available = _('True')
+            ks = self.wallet.keystore
+            assert isinstance(ks, keystore.Deterministic_KeyStore)
+            seed_available += f" ({ks.get_seed_type()})"
         keystore_types = [k.get_type_text() for k in self.wallet.get_keystores()]
         grid = QGridLayout()
         basename = os.path.basename(self.wallet.storage.path)
diff --git a/electrum/keystore.py b/electrum/keystore.py
index 414b0da5f..4cb002e0a 100644
--- a/electrum/keystore.py
+++ b/electrum/keystore.py
@@ -160,6 +160,9 @@ class KeyStore(Logger, ABC):
                 return pubkey, list(path)
         return None, None
 
+    def can_have_deterministic_lightning_xprv(self) -> bool:
+        return False
+
 
 class Software_KeyStore(KeyStore):
 
@@ -282,8 +285,9 @@ class Deterministic_KeyStore(Software_KeyStore):
 
     def __init__(self, d):
         Software_KeyStore.__init__(self, d)
-        self.seed = d.get('seed', '')
+        self.seed = d.get('seed', '')  # only electrum seeds
         self.passphrase = d.get('passphrase', '')
+        self._seed_type = d.get('seed_type', None)  # only electrum seeds
 
     def is_deterministic(self):
         return True
@@ -297,11 +301,16 @@ class Deterministic_KeyStore(Software_KeyStore):
             d['seed'] = self.seed
         if self.passphrase:
             d['passphrase'] = self.passphrase
+        if self._seed_type:
+            d['seed_type'] = self._seed_type
         return d
 
     def has_seed(self):
         return bool(self.seed)
 
+    def get_seed_type(self) -> Optional[str]:
+        return self._seed_type
+
     def is_watching_only(self):
         return not self.has_seed()
 
@@ -313,6 +322,7 @@ class Deterministic_KeyStore(Software_KeyStore):
         if self.seed:
             raise Exception("a seed exists")
         self.seed = self.format_seed(seed)
+        self._seed_type = seed_type(seed) or None
 
     def get_seed(self, password):
         if not self.has_seed():
@@ -613,7 +623,14 @@ class BIP32_KeyStore(Xpub, Deterministic_KeyStore):
         cK = ecc.ECPrivkey(k).get_public_key_bytes()
         return cK, k
 
-    def get_lightning_xprv(self, password):
+    def can_have_deterministic_lightning_xprv(self):
+        if (self.get_seed_type() == 'segwit'
+                and self.get_bip32_node_for_xpub().xtype == 'p2wpkh'):
+            return True
+        return False
+
+    def get_lightning_xprv(self, password) -> str:
+        assert self.can_have_deterministic_lightning_xprv()
         xprv = self.get_master_private_key(password)
         rootnode = BIP32Node.from_xkey(xprv)
         node = rootnode.subkey_at_private_derivation("m/67'/")
diff --git a/electrum/wallet.py b/electrum/wallet.py
index f65c94efe..3175601ed 100644
--- a/electrum/wallet.py
+++ b/electrum/wallet.py
@@ -333,24 +333,34 @@ class Abstract_Wallet(AddressSynchronizer, ABC):
         new_db.write(new_storage)
         return new_path
 
-    def has_lightning(self):
+    def has_lightning(self) -> bool:
         return bool(self.lnworker)
 
-    def can_have_lightning(self):
+    def can_have_lightning(self) -> bool:
         # we want static_remotekey to be a wallet address
         return self.txin_type == 'p2wpkh'
 
-    def init_lightning(self):
+    def can_have_deterministic_lightning(self) -> bool:
+        if not self.can_have_lightning():
+            return False
+        if not self.keystore:
+            return False
+        return self.keystore.can_have_deterministic_lightning_xprv()
+
+    def init_lightning(self, *, password) -> None:
         assert self.can_have_lightning()
         assert self.db.get('lightning_xprv') is None
-        if self.db.get('lightning_privkey2'):
-            return
-        # TODO derive this deterministically from wallet.keystore at keystore generation time
-        # probably along a hardened path ( lnd-equivalent would be m/1017'/coinType'/ )
-        seed = os.urandom(32)
-        node = BIP32Node.from_rootseed(seed, xtype='standard')
-        ln_xprv = node.to_xprv()
-        self.db.put('lightning_privkey2', ln_xprv)
+        assert self.db.get('lightning_privkey2') is None
+
+        if self.can_have_deterministic_lightning():
+            ks = self.keystore
+            assert isinstance(ks, keystore.BIP32_KeyStore)
+            self.db.put('lightning_xprv', ks.get_lightning_xprv(password))
+        else:
+            seed = os.urandom(32)
+            node = BIP32Node.from_rootseed(seed, xtype='standard')
+            ln_xprv = node.to_xprv()
+            self.db.put('lightning_privkey2', ln_xprv)
 
     async def stop(self):
         """Stop all networking and save DB to disk."""
@@ -3185,7 +3195,7 @@ def create_new_wallet(*, path, config: SimpleConfig, passphrase=None, password=N
     k = keystore.from_seed(seed, passphrase)
     db.put('keystore', k.dump())
     db.put('wallet_type', 'standard')
-    if keystore.seed_type(seed) == 'segwit':
+    if k.can_have_deterministic_lightning_xprv():
         db.put('lightning_xprv', k.get_lightning_xprv(None))
     if gap_limit is not None:
         db.put('gap_limit', gap_limit)
@@ -3229,7 +3239,7 @@ def restore_wallet_from_text(text, *, path, config: SimpleConfig,
             k = keystore.from_master_key(text)
         elif keystore.is_seed(text):
             k = keystore.from_seed(text, passphrase)
-            if keystore.seed_type(text) == 'segwit':
+            if k.can_have_deterministic_lightning_xprv():
                 db.put('lightning_xprv', k.get_lightning_xprv(None))
         else:
             raise Exception("Seed or key not recognized")
diff --git a/electrum/wallet_db.py b/electrum/wallet_db.py
index f740f77c0..3a602c36d 100644
--- a/electrum/wallet_db.py
+++ b/electrum/wallet_db.py
@@ -53,7 +53,7 @@ if TYPE_CHECKING:
 
 OLD_SEED_VERSION = 4        # electrum versions < 2.0
 NEW_SEED_VERSION = 11       # electrum versions >= 2.0
-FINAL_SEED_VERSION = 39     # electrum >= 2.7 will set this to prevent
+FINAL_SEED_VERSION = 40     # electrum >= 2.7 will set this to prevent
                             # old versions from overwriting new format
 
 
@@ -188,6 +188,7 @@ class WalletDB(JsonDB):
         self._convert_version_37()
         self._convert_version_38()
         self._convert_version_39()
+        self._convert_version_40()
         self.put('seed_version', FINAL_SEED_VERSION)  # just to be sure
 
         self._after_upgrade_tasks()
@@ -787,6 +788,29 @@ class WalletDB(JsonDB):
         self.data['imported_channel_backups'] = self.data.pop('channel_backups', {})
         self.data['seed_version'] = 39
 
+    def _convert_version_40(self):
+        # put 'seed_type' into keystores
+        if not self._is_upgrade_method_needed(39, 39):
+            return
+        for ks_name in ('keystore', *['x{}/'.format(i) for i in range(1, 16)]):
+            ks = self.data.get(ks_name, None)
+            if ks is None: continue
+            seed = ks.get('seed')
+            if not seed: continue
+            seed_type = None
+            xpub = ks.get('xpub') or None
+            if xpub:
+                assert isinstance(xpub, str)
+                if xpub[0:4] in ('xpub', 'tpub'):
+                    seed_type = 'standard'
+                elif xpub[0:4] in ('zpub', 'Zpub', 'vpub', 'Vpub'):
+                    seed_type = 'segwit'
+            elif ks.get('type') == 'old':
+                seed_type = 'old'
+            if seed_type is not None:
+                ks['seed_type'] = seed_type
+        self.data['seed_version'] = 40
+
     def _convert_imported(self):
         if not self._is_upgrade_method_needed(0, 13):
             return