diff --git a/modules/sdk-coin-xlm/package.json b/modules/sdk-coin-xlm/package.json
index 07766ac2e1..83e8b968d9 100644
--- a/modules/sdk-coin-xlm/package.json
+++ b/modules/sdk-coin-xlm/package.json
@@ -42,7 +42,6 @@
   "dependencies": {
     "@bitgo/sdk-core": "^25.1.0",
     "@bitgo/statics": "^46.1.0",
-    "@bitgo/utxo-lib": "^9.34.0",
     "bignumber.js": "^9.1.1",
     "lodash": "^4.17.14",
     "stellar-sdk": "^10.0.1",
diff --git a/modules/sdk-coin-xlm/src/xlm.ts b/modules/sdk-coin-xlm/src/xlm.ts
index b2271a1d07..7124bfee55 100644
--- a/modules/sdk-coin-xlm/src/xlm.ts
+++ b/modules/sdk-coin-xlm/src/xlm.ts
@@ -1,6 +1,5 @@
 import assert from 'assert';
 import * as _ from 'lodash';
-import * as utxolib from '@bitgo/utxo-lib';
 import * as querystring from 'querystring';
 import * as url from 'url';
 import * as request from 'superagent';
@@ -12,7 +11,6 @@ import {
   BitGoBase,
   checkKrsProvider,
   common,
-  Ed25519KeyDeriver,
   ExtraPrebuildParamsOptions,
   InvalidAddressError,
   InvalidMemoIdError,
@@ -33,6 +31,7 @@ import {
   VerifyAddressOptions as BaseVerifyAddressOptions,
   VerifyTransactionOptions as BaseVerifyTransactionOptions,
   Wallet,
+  NotSupported,
 } from '@bitgo/sdk-core';
 import { toBitgoRequest } from '@bitgo/sdk-api';
 import { getStellarKeys } from './getStellarKeys';
@@ -209,12 +208,8 @@ export class Xlm extends BaseCoin {
     return 'https://horizon.stellar.org';
   }
 
-  /**
-   * Generate a new key pair on the ed25519 curve
-   * @param seed
-   * @returns generated pub and prv
-   */
-  generateKeyPair(seed: Buffer): KeyPair {
+  /** inheritdoc */
+  generateKeyPair(seed?: Buffer): KeyPair {
     const pair = seed ? stellar.Keypair.fromRawEd25519Seed(seed) : stellar.Keypair.random();
     return {
       pub: pair.publicKey(),
@@ -1112,29 +1107,9 @@ export class Xlm extends BaseCoin {
     return true;
   }
 
-  /**
-   * Derive a hardened child public key from a master key seed using an additional seed for randomness.
-   *
-   * Due to technical differences between keypairs on the ed25519 curve and the secp256k1 curve,
-   * only hardened private key derivation is supported.
-   *
-   * @param key seed for the master key. Note: Not the public key or encoded private key. This is the raw seed.
-   * @param entropySeed random seed which is hashed to generate the derivation path
-   */
-  deriveKeyWithSeed({ key, seed }: { key: string; seed: string }): { derivationPath: string; key: string } {
-    const derivationPathInput = utxolib.crypto.hash256(Buffer.from(seed, 'utf8')).toString('hex');
-    const derivationPathParts = [
-      999999,
-      parseInt(derivationPathInput.slice(0, 7), 16),
-      parseInt(derivationPathInput.slice(7, 14), 16),
-    ];
-    const derivationPath = 'm/' + derivationPathParts.map((part) => `${part}'`).join('/');
-    const derivedKey = Ed25519KeyDeriver.derivePath(derivationPath, key).key;
-    const keypair = stellar.Keypair.fromRawEd25519Seed(derivedKey);
-    return {
-      key: keypair.publicKey(),
-      derivationPath,
-    };
+  /** inheritdoc */
+  deriveKeyWithSeed(): { derivationPath: string; key: string } {
+    throw new NotSupported('method deriveKeyWithSeed not supported for eddsa curve');
   }
 
   /**
diff --git a/modules/sdk-coin-xlm/test/unit/xlm.ts b/modules/sdk-coin-xlm/test/unit/xlm.ts
index 436eabda56..00f2710946 100644
--- a/modules/sdk-coin-xlm/test/unit/xlm.ts
+++ b/modules/sdk-coin-xlm/test/unit/xlm.ts
@@ -282,6 +282,14 @@ describe('XLM:', function () {
     walletParams.rootPrivateKey.should.equal(rootPrivateKey);
   });
 
+  describe('deriveKeyWithSeed', function () {
+    it('should derive key with seed', function () {
+      (() => {
+        basecoin.deriveKeyWithSeed('test');
+      }).should.throw('method deriveKeyWithSeed not supported for eddsa curve');
+    });
+  });
+
   describe('Transaction Verification', function () {
     let basecoin;
     let wallet;
@@ -891,18 +899,6 @@ describe('XLM:', function () {
       stellar.StrKey.encodeEd25519SecretSeed(seed).should.equal(secret);
     });
 
-    it('should deterministically derive a child key from master seed and entropy seed', () => {
-      const seed = Buffer.alloc(32).fill(0).toString('hex');
-      const masterSeed = '0x01020304050607080910111213141516171819202122232425262728293031';
-
-      const derivedKey = basecoin.deriveKeyWithSeed({ key: masterSeed, seed });
-
-      derivedKey.should.have.properties({
-        key: 'GCJR3ORBWOKGFA3FTGYDDQVFEEMCYXFHY6KAUOTU4MQMFHK4LLSWWGLW',
-        derivationPath: "m/999999'/230673453'/206129755'",
-      });
-    });
-
     it('should validate pub key', () => {
       const { pub } = basecoin.keychains().create();
       basecoin.isValidPub(pub).should.equal(true);