diff --git a/modules/abstract-lightning/src/wallet/custodialLightning.ts b/modules/abstract-lightning/src/wallet/custodialLightning.ts
new file mode 100644
index 0000000000..a044d0ee98
--- /dev/null
+++ b/modules/abstract-lightning/src/wallet/custodialLightning.ts
@@ -0,0 +1,13 @@
+import { ILightningWallet, LightningWallet } from './lightning';
+import * as sdkcore from '@bitgo/sdk-core';
+
+export type ICustodialLightningWallet = ILightningWallet;
+
+export class CustodialLightningWallet extends LightningWallet implements ICustodialLightningWallet {
+  constructor(wallet: sdkcore.IWallet) {
+    super(wallet);
+    if (wallet.type() !== 'custodial') {
+      throw new Error(`Invalid lightning wallet type for custodial lightning: ${wallet.type()}`);
+    }
+  }
+}
diff --git a/modules/abstract-lightning/src/wallet/index.ts b/modules/abstract-lightning/src/wallet/index.ts
index 02a2e45150..a8d5e1f83f 100644
--- a/modules/abstract-lightning/src/wallet/index.ts
+++ b/modules/abstract-lightning/src/wallet/index.ts
@@ -1,2 +1,4 @@
 export * from './lightning';
+export * from './custodialLightning';
+export * from './selfCustodialLightning';
 export * from './wallet';
diff --git a/modules/abstract-lightning/src/wallet/lightning.ts b/modules/abstract-lightning/src/wallet/lightning.ts
index b04fd4aa88..a15e6eaf58 100644
--- a/modules/abstract-lightning/src/wallet/lightning.ts
+++ b/modules/abstract-lightning/src/wallet/lightning.ts
@@ -25,7 +25,6 @@ import {
   Transaction,
   TransactionQuery,
   PaymentInfo,
-  BackupResponse,
   PaymentQuery,
 } from '../codecs';
 import { LightningPaymentIntent, LightningPaymentRequest } from '@bitgo/public-types';
@@ -38,34 +37,145 @@ export type PayInvoiceResponse = {
   paymentStatus?: LndCreatePaymentResponse;
 };
 
-export interface ILightningWallet {
-  /**
-   * Get the lightning keychain for the given wallet.
-   */
-  getLightningKeychain(): Promise<LightningKeychain>;
+/**
+ * Get the lightning keychain for the given wallet.
+ */
+export async function getLightningKeychain(wallet: sdkcore.IWallet): Promise<LightningKeychain> {
+  const coin = wallet.baseCoin;
+  if (coin.getFamily() !== 'lnbtc') {
+    throw new Error(`Invalid coin to get lightning wallet key: ${coin.getFamily()}`);
+  }
+  const keyIds = wallet.keyIds();
+  if (keyIds.length !== 1) {
+    throw new Error(`Invalid number of key in lightning wallet: ${keyIds.length}`);
+  }
+  const keychain = await coin.keychains().get({ id: keyIds[0] });
+  return sdkcore.decodeOrElse(LightningKeychain.name, LightningKeychain, keychain, (_) => {
+    throw new Error(`Invalid user key`);
+  });
+}
 
-  /**
-   * Get the lightning auth keychains for the given wallet.
-   */
-  getLightningAuthKeychains(): Promise<{ userAuthKey: LightningAuthKeychain; nodeAuthKey: LightningAuthKeychain }>;
+/**
+ * Get the lightning auth keychains for the given wallet.
+ */
+export async function getLightningAuthKeychains(wallet: sdkcore.IWallet): Promise<{
+  userAuthKey: LightningAuthKeychain;
+  nodeAuthKey: LightningAuthKeychain;
+}> {
+  const coin = wallet.baseCoin;
+  if (coin.getFamily() !== 'lnbtc') {
+    throw new Error(`Invalid coin to get lightning wallet auth keys: ${coin.getFamily()}`);
+  }
+  const authKeyIds = wallet.coinSpecific()?.keys;
+  if (authKeyIds?.length !== 2) {
+    throw new Error(`Invalid number of auth keys in lightning wallet: ${authKeyIds?.length}`);
+  }
+  const keychains = await Promise.all(authKeyIds.map((id) => coin.keychains().get({ id })));
+  const authKeychains = keychains.map((keychain) => {
+    return sdkcore.decodeOrElse(LightningAuthKeychain.name, LightningAuthKeychain, keychain, (_) => {
+      // DON'T throw errors from decodeOrElse. It could leak sensitive information.
+      throw new Error(`Invalid lightning auth key: ${keychain?.id}`);
+    });
+  });
+  const [userAuthKey, nodeAuthKey] = (['userAuth', 'nodeAuth'] as const).map((purpose) => {
+    const keychain = authKeychains.find(
+      (k) => unwrapLightningCoinSpecific(k.coinSpecific, coin.getChain()).purpose === purpose
+    );
+    if (!keychain) {
+      throw new Error(`Missing ${purpose} key`);
+    }
+    return keychain;
+  });
 
-  /**
-   * Updates the coin-specific configuration for a Lightning Wallet.
-   *
-   * @param {UpdateLightningWalletClientRequest} params - The parameters containing the updated wallet-specific details.
-   *   - `encryptedSignerMacaroon` (optional): This macaroon is used by the watch-only node to ask the signer node to sign transactions.
-   *     Encrypted with ECDH secret key from private key of wallet's user auth key and public key of lightning service.
-   *   - `encryptedSignerAdminMacaroon` (optional): Generated when initializing the wallet of the signer node.
-   *     Encrypted with client's wallet passphrase.
-   *   - `signerHost` (optional): The host address of the Lightning signer node.
-   *   - `encryptedSignerTlsKey` (optional): The wallet passphrase encrypted TLS key of the signer.
-   *   - `passphrase` (required): The wallet passphrase.
-   *   - `signerTlsCert` (optional): The TLS certificate of the signer.
-   *   - `watchOnlyAccounts` (optional): These are the accounts used to initialize the watch-only wallet.
-   * @returns {Promise<unknown>} A promise resolving to the updated wallet response or throwing an error if the update fails.
-   */
-  updateWalletCoinSpecific(params: UpdateLightningWalletClientRequest): Promise<unknown>;
+  return { userAuthKey, nodeAuthKey };
+}
+
+function encryptWalletUpdateRequest(
+  wallet: sdkcore.IWallet,
+  params: UpdateLightningWalletClientRequest,
+  userAuthKey: LightningAuthKeychain
+): UpdateLightningWalletEncryptedRequest {
+  const coinName = wallet.coin() as 'tlnbtc' | 'lnbtc';
+
+  const requestWithEncryption: Partial<UpdateLightningWalletClientRequest & UpdateLightningWalletEncryptedRequest> = {
+    ...params,
+  };
+
+  const userAuthXprv = wallet.bitgo.decrypt({
+    password: params.passphrase,
+    input: userAuthKey.encryptedPrv,
+  });
 
+  if (params.signerTlsKey) {
+    requestWithEncryption.encryptedSignerTlsKey = wallet.bitgo.encrypt({
+      password: params.passphrase,
+      input: params.signerTlsKey,
+    });
+  }
+
+  if (params.signerAdminMacaroon) {
+    requestWithEncryption.encryptedSignerAdminMacaroon = wallet.bitgo.encrypt({
+      password: params.passphrase,
+      input: params.signerAdminMacaroon,
+    });
+  }
+
+  if (params.signerMacaroon) {
+    requestWithEncryption.encryptedSignerMacaroon = wallet.bitgo.encrypt({
+      password: deriveLightningServiceSharedSecret(coinName, userAuthXprv).toString('hex'),
+      input: params.signerMacaroon,
+    });
+  }
+
+  return t.exact(UpdateLightningWalletEncryptedRequest).encode(requestWithEncryption);
+}
+
+/**
+ * Updates the coin-specific configuration for a Lightning Wallet.
+ *
+ * @param {Wallet} wallet - Wallet.
+ * @param {UpdateLightningWalletClientRequest} params - The parameters containing the updated wallet-specific details.
+ *   - `encryptedSignerMacaroon` (optional): This macaroon is used by the watch-only node to ask the signer node to sign transactions.
+ *     Encrypted with ECDH secret key from private key of wallet's user auth key and public key of lightning service.
+ *   - `encryptedSignerAdminMacaroon` (optional): Generated when initializing the wallet of the signer node.
+ *     Encrypted with client's wallet passphrase.
+ *   - `signerHost` (optional): The host address of the Lightning signer node.
+ *   - `encryptedSignerTlsKey` (optional): The wallet passphrase encrypted TLS key of the signer.
+ *   - `passphrase` (required): The wallet passphrase.
+ *   - `signerTlsCert` (optional): The TLS certificate of the signer.
+ *   - `watchOnlyAccounts` (optional): These are the accounts used to initialize the watch-only wallet.
+ * @returns {Promise<unknown>} A promise resolving to the updated wallet response or throwing an error if the update fails.
+ */
+export async function updateWalletCoinSpecific(
+  wallet: sdkcore.IWallet,
+  params: UpdateLightningWalletClientRequest
+): Promise<unknown> {
+  sdkcore.decodeOrElse(
+    UpdateLightningWalletClientRequest.name,
+    UpdateLightningWalletClientRequest,
+    params,
+    (errors) => {
+      // DON'T throw errors from decodeOrElse. It could leak sensitive information.
+      throw new Error(`Invalid params for lightning specific update wallet`);
+    }
+  );
+
+  const { userAuthKey } = await getLightningAuthKeychains(wallet);
+  const updateRequestWithEncryption = encryptWalletUpdateRequest(wallet, params, userAuthKey);
+  const signature = createMessageSignature(
+    updateRequestWithEncryption,
+    wallet.bitgo.decrypt({ password: params.passphrase, input: userAuthKey.encryptedPrv })
+  );
+  const coinSpecific = {
+    [wallet.coin()]: {
+      signedRequest: updateRequestWithEncryption,
+      signature,
+    },
+  };
+  return await wallet.bitgo.put(wallet.url()).send({ coinSpecific }).result();
+}
+
+export interface ILightningWallet {
   /**
    * Creates a lightning invoice
    * @param {object} params Invoice parameters
@@ -138,130 +248,19 @@ export interface ILightningWallet {
    * @returns {Promise<Transaction[]>} List of transactions
    */
   listTransactions(params: TransactionQuery): Promise<Transaction[]>;
-
-  /**
-   * Get the channel backup for the given wallet.
-   * @returns {Promise<BackupResponse>} A promise resolving to the channel backup
-   */
-  getChannelBackup(): Promise<BackupResponse>;
 }
 
-export class SelfCustodialLightningWallet implements ILightningWallet {
+export class LightningWallet implements ILightningWallet {
   public wallet: sdkcore.IWallet;
 
   constructor(wallet: sdkcore.IWallet) {
     const coin = wallet.baseCoin;
     if (coin.getFamily() !== 'lnbtc') {
-      throw new Error(`Invalid coin to update lightning wallet: ${coin.getFamily()}`);
+      throw new Error(`Invalid coin for lightning wallet: ${coin.getFamily()}`);
     }
     this.wallet = wallet;
   }
 
-  private encryptWalletUpdateRequest(
-    params: UpdateLightningWalletClientRequest,
-    userAuthKey: LightningAuthKeychain
-  ): UpdateLightningWalletEncryptedRequest {
-    const coinName = this.wallet.coin() as 'tlnbtc' | 'lnbtc';
-
-    const requestWithEncryption: Partial<UpdateLightningWalletClientRequest & UpdateLightningWalletEncryptedRequest> = {
-      ...params,
-    };
-
-    const userAuthXprv = this.wallet.bitgo.decrypt({
-      password: params.passphrase,
-      input: userAuthKey.encryptedPrv,
-    });
-
-    if (params.signerTlsKey) {
-      requestWithEncryption.encryptedSignerTlsKey = this.wallet.bitgo.encrypt({
-        password: params.passphrase,
-        input: params.signerTlsKey,
-      });
-    }
-
-    if (params.signerAdminMacaroon) {
-      requestWithEncryption.encryptedSignerAdminMacaroon = this.wallet.bitgo.encrypt({
-        password: params.passphrase,
-        input: params.signerAdminMacaroon,
-      });
-    }
-
-    if (params.signerMacaroon) {
-      requestWithEncryption.encryptedSignerMacaroon = this.wallet.bitgo.encrypt({
-        password: deriveLightningServiceSharedSecret(coinName, userAuthXprv).toString('hex'),
-        input: params.signerMacaroon,
-      });
-    }
-
-    return t.exact(UpdateLightningWalletEncryptedRequest).encode(requestWithEncryption);
-  }
-
-  async getLightningKeychain(): Promise<LightningKeychain> {
-    const keyIds = this.wallet.keyIds();
-    if (keyIds.length !== 1) {
-      throw new Error(`Invalid number of key in lightning wallet: ${keyIds.length}`);
-    }
-    const keychain = await this.wallet.baseCoin.keychains().get({ id: keyIds[0] });
-    return sdkcore.decodeOrElse(LightningKeychain.name, LightningKeychain, keychain, (_) => {
-      throw new Error(`Invalid user key`);
-    });
-  }
-
-  async getLightningAuthKeychains(): Promise<{
-    userAuthKey: LightningAuthKeychain;
-    nodeAuthKey: LightningAuthKeychain;
-  }> {
-    const authKeyIds = this.wallet.coinSpecific()?.keys;
-    if (authKeyIds?.length !== 2) {
-      throw new Error(`Invalid number of auth keys in lightning wallet: ${authKeyIds?.length}`);
-    }
-    const coin = this.wallet.baseCoin;
-    const keychains = await Promise.all(authKeyIds.map((id) => coin.keychains().get({ id })));
-    const authKeychains = keychains.map((keychain) => {
-      return sdkcore.decodeOrElse(LightningAuthKeychain.name, LightningAuthKeychain, keychain, (_) => {
-        // DON'T throw errors from decodeOrElse. It could leak sensitive information.
-        throw new Error(`Invalid lightning auth key: ${keychain?.id}`);
-      });
-    });
-    const [userAuthKey, nodeAuthKey] = (['userAuth', 'nodeAuth'] as const).map((purpose) => {
-      const keychain = authKeychains.find(
-        (k) => unwrapLightningCoinSpecific(k.coinSpecific, coin.getChain()).purpose === purpose
-      );
-      if (!keychain) {
-        throw new Error(`Missing ${purpose} key`);
-      }
-      return keychain;
-    });
-
-    return { userAuthKey, nodeAuthKey };
-  }
-
-  async updateWalletCoinSpecific(params: UpdateLightningWalletClientRequest): Promise<unknown> {
-    sdkcore.decodeOrElse(
-      UpdateLightningWalletClientRequest.name,
-      UpdateLightningWalletClientRequest,
-      params,
-      (errors) => {
-        // DON'T throw errors from decodeOrElse. It could leak sensitive information.
-        throw new Error(`Invalid params for lightning specific update wallet`);
-      }
-    );
-
-    const { userAuthKey } = await this.getLightningAuthKeychains();
-    const updateRequestWithEncryption = this.encryptWalletUpdateRequest(params, userAuthKey);
-    const signature = createMessageSignature(
-      updateRequestWithEncryption,
-      this.wallet.bitgo.decrypt({ password: params.passphrase, input: userAuthKey.encryptedPrv })
-    );
-    const coinSpecific = {
-      [this.wallet.coin()]: {
-        signedRequest: updateRequestWithEncryption,
-        signature,
-      },
-    };
-    return await this.wallet.bitgo.put(this.wallet.url()).send({ coinSpecific }).result();
-  }
-
   async createInvoice(params: CreateInvoiceBody): Promise<Invoice> {
     const createInvoiceResponse = await this.wallet.bitgo
       .post(this.wallet.baseCoin.url(`/wallet/${this.wallet.id()}/lightning/invoice`))
@@ -297,7 +296,7 @@ export class SelfCustodialLightningWallet implements ILightningWallet {
     const reqId = new RequestTracer();
     this.wallet.bitgo.setRequestTracer(reqId);
 
-    const { userAuthKey } = await this.getLightningAuthKeychains();
+    const { userAuthKey } = await getLightningAuthKeychains(this.wallet);
     const signature = createMessageSignature(
       t.exact(LightningPaymentRequest).encode(params),
       this.wallet.bitgo.decrypt({ password: params.passphrase, input: userAuthKey.encryptedPrv })
@@ -387,13 +386,4 @@ export class SelfCustodialLightningWallet implements ILightningWallet {
       throw new Error(`Invalid transaction list response: ${error}`);
     });
   }
-
-  async getChannelBackup(): Promise<BackupResponse> {
-    const backupResponse = await this.wallet.bitgo
-      .get(this.wallet.baseCoin.url(`/wallet/${this.wallet.id()}/lightning/backup`))
-      .result();
-    return sdkcore.decodeOrElse(BackupResponse.name, BackupResponse, backupResponse, (error) => {
-      throw new Error(`Invalid backup response: ${error}`);
-    });
-  }
 }
diff --git a/modules/abstract-lightning/src/wallet/selfCustodialLightning.ts b/modules/abstract-lightning/src/wallet/selfCustodialLightning.ts
new file mode 100644
index 0000000000..0b691cbb08
--- /dev/null
+++ b/modules/abstract-lightning/src/wallet/selfCustodialLightning.ts
@@ -0,0 +1,29 @@
+import * as sdkcore from '@bitgo/sdk-core';
+import { BackupResponse } from '../codecs';
+import { ILightningWallet, LightningWallet } from './lightning';
+
+export interface ISelfCustodialLightningWallet extends ILightningWallet {
+  /**
+   * Get the channel backup for the given wallet.
+   * @returns {Promise<BackupResponse>} A promise resolving to the channel backup
+   */
+  getChannelBackup(): Promise<BackupResponse>;
+}
+
+export class SelfCustodialLightningWallet extends LightningWallet implements ISelfCustodialLightningWallet {
+  constructor(wallet: sdkcore.IWallet) {
+    super(wallet);
+    if (wallet.type() !== 'hot') {
+      throw new Error(`Invalid lightning wallet type for self custodial lightning: ${wallet.type()}`);
+    }
+  }
+
+  async getChannelBackup(): Promise<BackupResponse> {
+    const backupResponse = await this.wallet.bitgo
+      .get(this.wallet.baseCoin.url(`/wallet/${this.wallet.id()}/lightning/backup`))
+      .result();
+    return sdkcore.decodeOrElse(BackupResponse.name, BackupResponse, backupResponse, (error) => {
+      throw new Error(`Invalid backup response: ${error}`);
+    });
+  }
+}
diff --git a/modules/abstract-lightning/src/wallet/wallet.ts b/modules/abstract-lightning/src/wallet/wallet.ts
index 95114b7bef..40e0f6373f 100644
--- a/modules/abstract-lightning/src/wallet/wallet.ts
+++ b/modules/abstract-lightning/src/wallet/wallet.ts
@@ -1,14 +1,22 @@
 import * as sdkcore from '@bitgo/sdk-core';
-import { isLightningCoinName } from '../lightning';
-import { ILightningWallet, SelfCustodialLightningWallet } from './lightning';
+import { SelfCustodialLightningWallet } from './selfCustodialLightning';
+import { CustodialLightningWallet } from './custodialLightning';
+import { ILightningWallet } from './lightning';
 
 /**
- * Return a lightwallet instance if the coin supports it
+ * Returns custodial or self custodial lightning wallet depends on wallet type.
  */
-
 export function getLightningWallet(wallet: sdkcore.IWallet): ILightningWallet {
-  if (!isLightningCoinName(wallet.baseCoin.getChain())) {
-    throw new Error(`Lightning not supported for ${wallet.coin()}`);
+  if (wallet.baseCoin.getFamily() !== 'lnbtc') {
+    throw new Error(`invalid coin for lightning wallet: ${wallet.baseCoin.getFamily()}`);
+  }
+
+  switch (wallet.type()) {
+    case 'custodial':
+      return new CustodialLightningWallet(wallet);
+    case 'hot':
+      return new SelfCustodialLightningWallet(wallet);
+    default:
+      throw new Error(`invalid wallet type ${wallet.type()} for for lightning coin`);
   }
-  return new SelfCustodialLightningWallet(wallet);
 }
diff --git a/modules/bitgo/test/v2/unit/lightning/lightningWallets.ts b/modules/bitgo/test/v2/unit/lightning/lightningWallets.ts
index 59e90009ac..4431552343 100644
--- a/modules/bitgo/test/v2/unit/lightning/lightningWallets.ts
+++ b/modules/bitgo/test/v2/unit/lightning/lightningWallets.ts
@@ -9,9 +9,12 @@ import {
   InvoiceInfo,
   InvoiceQuery,
   LndCreatePaymentResponse,
-  SelfCustodialLightningWallet,
+  LightningWallet,
   SubmitPaymentParams,
   UpdateLightningWalletClientRequest,
+  getLightningKeychain,
+  getLightningAuthKeychains,
+  updateWalletCoinSpecific,
 } from '@bitgo/abstract-lightning';
 
 import { BitGo, common, GenerateLightningWalletOptions, Wallet, Wallets } from '../../../../src';
@@ -217,11 +220,11 @@ describe('Lightning wallets', function () {
   });
 
   describe('invoices', function () {
-    let wallet: SelfCustodialLightningWallet;
+    let wallet: LightningWallet;
     beforeEach(function () {
       wallet = getLightningWallet(
         new Wallet(bitgo, basecoin, { id: 'walletId', coin: 'tlnbtc', coinSpecific: { keys: ['def', 'ghi'] } })
-      ) as SelfCustodialLightningWallet;
+      ) as LightningWallet;
     });
 
     it('should list invoices', async function () {
@@ -470,19 +473,19 @@ describe('Lightning wallets', function () {
     };
 
     it('should get lightning key', async function () {
-      const wallet = getLightningWallet(new Wallet(bitgo, basecoin, walletData));
+      const wallet = new Wallet(bitgo, basecoin, walletData);
 
       const keyNock = nock(bgUrl)
         .get('/api/v2/' + coinName + '/key/abc')
         .reply(200, userKeyData);
 
-      const key = await wallet.getLightningKeychain();
+      const key = await getLightningKeychain(wallet);
       assert.deepStrictEqual(key, userKeyData);
       keyNock.done();
     });
 
     it('should get lightning auth keys', async function () {
-      const wallet = getLightningWallet(new Wallet(bitgo, basecoin, walletData));
+      const wallet = new Wallet(bitgo, basecoin, walletData);
 
       const userAuthKeyNock = nock(bgUrl)
         .get('/api/v2/' + coinName + '/key/def')
@@ -491,7 +494,7 @@ describe('Lightning wallets', function () {
         .get('/api/v2/' + coinName + '/key/ghi')
         .reply(200, nodeAuthKeyData);
 
-      const { userAuthKey, nodeAuthKey } = await wallet.getLightningAuthKeychains();
+      const { userAuthKey, nodeAuthKey } = await getLightningAuthKeychains(wallet);
       assert.deepStrictEqual(userAuthKey, userAuthKeyData);
       assert.deepStrictEqual(nodeAuthKey, nodeAuthKeyData);
       userAuthKeyNock.done();
@@ -499,35 +502,33 @@ describe('Lightning wallets', function () {
     });
 
     it('should fail to get lightning key for invalid number of keys', async function () {
-      const wallet = getLightningWallet(new Wallet(bitgo, basecoin, { ...walletData, keys: [] }));
+      const wallet = new Wallet(bitgo, basecoin, { ...walletData, keys: [] });
       await assert.rejects(
-        async () => await wallet.getLightningKeychain(),
+        async () => await getLightningKeychain(wallet),
         /Error: Invalid number of key in lightning wallet: 0/
       );
     });
 
     it('should fail to get lightning auth keys for invalid number of keys', async function () {
-      const wallet = getLightningWallet(
-        new Wallet(bitgo, basecoin, { ...walletData, coinSpecific: { keys: ['def'] } })
-      );
+      const wallet = new Wallet(bitgo, basecoin, { ...walletData, coinSpecific: { keys: ['def'] } });
       await assert.rejects(
-        async () => await wallet.getLightningAuthKeychains(),
+        async () => await getLightningAuthKeychains(wallet),
         /Error: Invalid number of auth keys in lightning wallet: 1/
       );
     });
 
     it('should fail to get lightning key for invalid response', async function () {
-      const wallet = getLightningWallet(new Wallet(bitgo, basecoin, walletData));
+      const wallet = new Wallet(bitgo, basecoin, walletData);
 
       nock(bgUrl)
         .get('/api/v2/' + coinName + '/key/abc')
         .reply(200, { ...userKeyData, source: 'backup' });
 
-      await assert.rejects(async () => await wallet.getLightningKeychain(), /Error: Invalid user key/);
+      await assert.rejects(async () => await getLightningKeychain(wallet), /Error: Invalid user key/);
     });
 
     it('should fail to get lightning auth keys for invalid response', async function () {
-      const wallet = getLightningWallet(new Wallet(bitgo, basecoin, walletData));
+      const wallet = new Wallet(bitgo, basecoin, walletData);
 
       nock(bgUrl)
         .get('/api/v2/' + coinName + '/key/def')
@@ -538,7 +539,7 @@ describe('Lightning wallets', function () {
         .reply(200, nodeAuthKeyData);
 
       await assert.rejects(
-        async () => await wallet.getLightningAuthKeychains(),
+        async () => await getLightningAuthKeychains(wallet),
         /Error: Invalid lightning auth key: def/
       );
     });
@@ -571,7 +572,7 @@ describe('Lightning wallets', function () {
       ],
     };
     it('should update wallet', async function () {
-      const wallet = getLightningWallet(new Wallet(bitgo, basecoin, walletData));
+      const wallet = new Wallet(bitgo, basecoin, walletData);
 
       const userAuthKeyNock = nock(bgUrl)
         .get('/api/v2/' + coinName + '/key/def')
@@ -596,7 +597,7 @@ describe('Lightning wallets', function () {
         passphrase: 'password123',
       };
 
-      await assert.doesNotReject(async () => await wallet.updateWalletCoinSpecific(params));
+      await assert.doesNotReject(async () => await updateWalletCoinSpecific(wallet, params));
       assert(userAuthKeyNock.isDone());
       assert(nodeAuthKeyNock.isDone());
       assert(wpWalletUpdateNock.isDone());
diff --git a/modules/express/src/lightning/lightningBackupRoutes.ts b/modules/express/src/lightning/lightningBackupRoutes.ts
index 8e597855ef..885d3f8adb 100644
--- a/modules/express/src/lightning/lightningBackupRoutes.ts
+++ b/modules/express/src/lightning/lightningBackupRoutes.ts
@@ -1,5 +1,5 @@
 import * as express from 'express';
-import { BackupResponse, getLightningWallet } from '@bitgo/abstract-lightning';
+import { BackupResponse, getLightningWallet, SelfCustodialLightningWallet } from '@bitgo/abstract-lightning';
 
 /**
  * Handle getting channel backup for a Lightning wallet
@@ -11,6 +11,8 @@ export async function handleGetChannelBackup(req: express.Request): Promise<Back
   const coin = bitgo.coin(req.params.coin);
   const wallet = await coin.wallets().get({ id: req.params.id });
   const lightningWallet = getLightningWallet(wallet);
-
+  if (!(lightningWallet instanceof SelfCustodialLightningWallet)) {
+    throw new Error(`wallet ${wallet.id()} is not self custodial lightning`);
+  }
   return await lightningWallet.getChannelBackup();
 }
diff --git a/modules/express/src/lightning/lightningSignerRoutes.ts b/modules/express/src/lightning/lightningSignerRoutes.ts
index 55ad81c048..ecceecb0b3 100644
--- a/modules/express/src/lightning/lightningSignerRoutes.ts
+++ b/modules/express/src/lightning/lightningSignerRoutes.ts
@@ -7,7 +7,9 @@ import {
   createWatchOnly,
   addIPCaveatToMacaroon,
   isLightningCoinName,
-  getLightningWallet,
+  getLightningKeychain,
+  getLightningAuthKeychains,
+  updateWalletCoinSpecific,
 } from '@bitgo/abstract-lightning';
 import * as utxolib from '@bitgo/utxo-lib';
 import { Buffer } from 'buffer';
@@ -82,11 +84,14 @@ export async function handleInitLightningWallet(req: express.Request): Promise<u
     }
   );
 
+  const wallet = await coin.wallets().get({ id: walletId });
+  if (wallet.type() !== 'hot') {
+    throw new ApiResponseError(`not a self custodial lighting wallet ${walletId}`, 400);
+  }
   const lndSignerClient = await LndSignerClient.create(walletId, req.config);
-  const lightningWallet = getLightningWallet(await coin.wallets().get({ id: walletId }));
 
-  const userKey = await lightningWallet.getLightningKeychain();
-  const { nodeAuthKey } = await lightningWallet.getLightningAuthKeychains();
+  const userKey = await getLightningKeychain(wallet);
+  const { nodeAuthKey } = await getLightningAuthKeychains(wallet);
 
   const network = getUtxolibNetwork(coin.getChain());
   const signerRootKey = getSignerRootKey(passphrase, userKey.encryptedPrv, network, bitgo.decrypt);
@@ -100,7 +105,7 @@ export async function handleInitLightningWallet(req: express.Request): Promise<u
     macaroon_root_key: macaroonRootKey,
   });
 
-  return await lightningWallet.updateWalletCoinSpecific({
+  return await updateWalletCoinSpecific(wallet, {
     signerAdminMacaroon:
       expressHost && !!isIP(expressHost) ? addIPCaveatToMacaroon(adminMacaroon, expressHost) : adminMacaroon,
     watchOnlyAccounts: createWatchOnly(signerRootKey, network),
@@ -134,6 +139,9 @@ export async function handleCreateSignerMacaroon(req: express.Request): Promise<
   );
 
   const wallet = await coin.wallets().get({ id: walletId });
+  if (wallet.type() !== 'hot') {
+    throw new ApiResponseError(`not a self custodial lighting wallet ${walletId}`, 400);
+  }
   const watchOnlyIp = wallet.coinSpecific()?.watchOnlyExternalIp;
   if (!watchOnlyIp && addIpCaveatToMacaroon) {
     throw new ApiResponseError(
@@ -147,7 +155,6 @@ export async function handleCreateSignerMacaroon(req: express.Request): Promise<
   }
 
   const lndSignerClient = await LndSignerClient.create(walletId, req.config);
-  const lightningWallet = getLightningWallet(wallet);
 
   const encryptedSignerAdminMacaroon = wallet.coinSpecific()?.encryptedSignerAdminMacaroon;
   if (!encryptedSignerAdminMacaroon) {
@@ -164,7 +171,7 @@ export async function handleCreateSignerMacaroon(req: express.Request): Promise<
     addIpCaveatToMacaroon ? watchOnlyIp : null
   );
 
-  return await lightningWallet.updateWalletCoinSpecific({
+  return await updateWalletCoinSpecific(wallet, {
     signerMacaroon,
     passphrase,
   });
diff --git a/modules/express/src/lightning/lightningWalletRoutes.ts b/modules/express/src/lightning/lightningWalletRoutes.ts
index 8dd7bea838..35524c7061 100644
--- a/modules/express/src/lightning/lightningWalletRoutes.ts
+++ b/modules/express/src/lightning/lightningWalletRoutes.ts
@@ -8,6 +8,7 @@ import {
   PaymentInfo,
   Transaction,
   PaymentQuery,
+  updateWalletCoinSpecific,
 } from '@bitgo/abstract-lightning';
 import { decodeOrElse } from '@bitgo/sdk-core';
 import { TransactionParams, PaymentHashParams } from './codecs';
@@ -41,9 +42,8 @@ export async function handleUpdateLightningWalletCoinSpecific(req: express.Reque
 
   const coin = bitgo.coin(req.params.coin);
   const wallet = await coin.wallets().get({ id: req.params.id });
-  const lightningWallet = getLightningWallet(wallet);
 
-  return await lightningWallet.updateWalletCoinSpecific(params);
+  return await updateWalletCoinSpecific(wallet, params);
 }
 
 export async function handleListLightningTransactions(req: express.Request): Promise<unknown> {
diff --git a/modules/express/test/unit/lightning/lightningWalletRoutes.test.ts b/modules/express/test/unit/lightning/lightningWalletRoutes.test.ts
index 9c7dbdfda3..7003a6afa5 100644
--- a/modules/express/test/unit/lightning/lightningWalletRoutes.test.ts
+++ b/modules/express/test/unit/lightning/lightningWalletRoutes.test.ts
@@ -134,14 +134,11 @@ describe('Lightning Wallet Routes', () => {
       };
 
       const updateStub = sinon.stub().resolves(expectedResponse);
-      const mockLightningWallet = {
-        updateWalletCoinSpecific: updateStub,
-      };
 
       const proxyquire = require('proxyquire');
       const lightningRoutes = proxyquire('../../../src/lightning/lightningWalletRoutes', {
         '@bitgo/abstract-lightning': {
-          getLightningWallet: () => mockLightningWallet,
+          updateWalletCoinSpecific: updateStub,
         },
       });
 
@@ -155,10 +152,10 @@ describe('Lightning Wallet Routes', () => {
 
       should(result).deepEqual(expectedResponse);
       should(updateStub).be.calledOnce();
-      const [firstArg] = updateStub.getCall(0).args;
-      should(firstArg).have.property('signerMacaroon', 'encrypted-macaroon-data');
-      should(firstArg).have.property('signerHost', 'signer.example.com');
-      should(firstArg).have.property('passphrase', 'wallet-password-123');
+      const secondArg = updateStub.getCall(0).args[1];
+      should(secondArg).have.property('signerMacaroon', 'encrypted-macaroon-data');
+      should(secondArg).have.property('signerHost', 'signer.example.com');
+      should(secondArg).have.property('passphrase', 'wallet-password-123');
     });
 
     it('should throw error when passphrase is missing', async () => {