Paper 2026/380

Lattice HD Wallets: Post-Quantum BIP32 Hierarchical Deterministic Wallets from Lattice Assumptions

Abstract

Hierarchical deterministic (HD) wallets, standardized as BIP32, allow users to manage a tree of cryptographic key pairs from a single master seed. A defining feature is non-hardened derivation: child public keys can be derived from a parent public key alone, enabling watch-only wallets where a server generates fresh receiving addresses while the signing key remains offline. Existing constructions rely on the algebraic structure of elliptic curve public keys, and recovering this functionality in the post-quantum setting is an open problem. We present two post-quantum HD wallet constructions. The first uses ML-DSA and supports hardened (private-key-dependent) derivation with proofs of unlinkability and unforgeability. The second, our primary contribution, uses Raccoon-G, a variant of the Raccoon signature scheme with Gaussian-distributed secrets. We modify Raccoon-G to publish full, unrounded public keys, preserving linearity. Since the sum of Gaussians is again Gaussian with predictable wider variance, derived keys remain statistically close to freshly generated ones, enabling non-hardened public key derivation. We prove unlinkability and unforgeability under standard lattice assumptions, and introduce a method for generating rerandomizable Raccoon-G key pairs from fixed randomness with provable existential unforgeability. Both constructions are implemented in Rust. To our knowledge, this is the first post-quantum HD wallet construction that recovers BIP32's full public key derivation functionality with provable security under standard assumptions.