diff --git a/README.md b/README.md
index e92a9824..9429af4f 100644
--- a/README.md
+++ b/README.md
@@ -8,7 +8,9 @@ LightWallet is a HD wallet that can store your private keys encrypted in the bro
 
 LightWallet is primarily intended to be a signing provider for the [Hooked Web3 provider](https://github.com/ConsenSys/hooked-web3-provider) through the `keystore` module. This allows you to have full control over your private keys while still connecting to a remote node to relay signed transactions. Moreover, the `txutils` functions can be used to construct transactions when offline, for use in e.g. air-gapped coldwallet implementations.
 
-The default BIP32 HD derivation path is `m/0'/0'/0'/i`.
+
+As of version 3.0.0, the keystore default BIP32 HD derivation path is `m/44'/60'/0'/0/n`.
+Previous releases defaults to `m/0'/0'/0'`.
 
 ## Security
 
@@ -79,8 +81,9 @@ Constructor of the keystore object. The seed `seed` is encrypted with `pwDerived
 
 #### Inputs
 
-* words: string defining a 12-word seed according to [BIP39][]
+* seed: string defining a 12-word seed according to [BIP39][]
 * pwDerivedKey: symmetric key to encrypt the seed (Uint8Array)
+* hdPathString (optional): The HD derivation path as described in [BIP44]. Defaults to `m/44'/60'/0'/0/n` since 3.0.0.
 
 ### `keystore.isDerivedKeyCorrect(pwDerivedKey)`
 
@@ -295,6 +298,7 @@ npm run coverage
 
 [BIP39]: https://github.com/bitcoin/bips/blob/master/bip-0039.mediawiki
 [BIP32]: https://github.com/bitcoin/bips/blob/master/bip-0032.mediawiki
+[BIP44]: https://github.com/bitcoin/bips/blob/master/bip-0044.mediawiki
 
 ## License
 
diff --git a/lib/keystore.js b/lib/keystore.js
index 7ef25b84..e1c38a04 100644
--- a/lib/keystore.js
+++ b/lib/keystore.js
@@ -59,7 +59,7 @@ function nacl_decodeHex(msgHex) {
 
 var KeyStore = function(mnemonic, pwDerivedKey, hdPathString) {
 
-  this.defaultHdPathString = "m/0'/0'/0'";
+  this.defaultHdPathString = "m/44'/60'/0'/0";
 
   if (hdPathString === undefined) {
     hdPathString = this.defaultHdPathString;
@@ -94,9 +94,7 @@ var KeyStore = function(mnemonic, pwDerivedKey, hdPathString) {
     // generateNewAddress(). The derived keys are then
     // `hdRoot/hdIndex`.
     //
-    // Default hdRoot is m/0'/0'/0', the overall logic is
-    // m/0'/Persona'/Purpose', where the 0' purpose is
-    // for standard Ethereum accounts.
+    // Default hdRoot is m/44'/60'/0'/0
 
     var hdRoot = new Mnemonic(mnemonic).toHDPrivateKey().xprivkey;
     this.encHdRootPriv = KeyStore._encryptString(hdRoot, pwDerivedKey);
@@ -318,12 +316,13 @@ KeyStore.deserialize = function (keystore) {
     throw new Error('Old version of serialized keystore. Please use KeyStore.upgradeOldSerialized() to convert it to the latest version.')
   }
 
-  // Create keystore
+  // Create keystore with old default path
   var keystoreX = new KeyStore();
 
-  keystoreX.encSeed       = jsonKS.encSeed;
-  keystoreX.encHdRootPriv = jsonKS.encHdRootPriv;
-  keystoreX.ksData        = jsonKS.ksData;
+  keystoreX.encSeed             = jsonKS.encSeed;
+  keystoreX.encHdRootPriv       = jsonKS.encHdRootPriv;
+  keystoreX.ksData              = jsonKS.ksData;
+  keystoreX.defaultHdPathString = jsonKS.defaultHdPathString;
 
   return keystoreX;
 };
@@ -334,6 +333,7 @@ KeyStore.prototype.serialize = function () {
   var jsonKS = {'encSeed': this.encSeed,
                 'ksData' : this.ksData,
                 'encHdRootPriv' : this.encHdRootPriv,
+		'defaultHdPathString' : this.defaultHdPathString,
                 'version' : this.version};
 
   return JSON.stringify(jsonKS);
@@ -498,8 +498,15 @@ KeyStore.prototype.hasAddress = function (address, callback) {
 
 };
 
-KeyStore.prototype.signTransaction = function (txParams, callback) {
+//Putting hdPath as optional argument after callback is a bit ugly,
+//but makes integration of the new default path less of a hassle
+//for users
+KeyStore.prototype.signTransaction = function (txParams, callback, hdPathString) {
 
+  if (hdPathString === undefined) {
+    hdPathString = this.defaultHdPathString;
+  }
+    
   var ethjsTxParams = {};
 
   ethjsTxParams.from = add0x(txParams.from);
@@ -517,7 +524,7 @@ KeyStore.prototype.signTransaction = function (txParams, callback) {
   this.passwordProvider( function (err, password) {
     if (err) return callback(err);
     KeyStore.deriveKeyFromPassword(password, function (err, pwDerivedKey) {
-      var signedTx = signing.signTx(self, pwDerivedKey, rawTx, signingAddress, self.defaultHdPathString);
+      var signedTx = signing.signTx(self, pwDerivedKey, rawTx, signingAddress, hdPathString);
       callback(null, '0x' + signedTx);
     })
   })
diff --git a/lib/upgrade.js b/lib/upgrade.js
index 4e05ced0..a1b5755d 100644
--- a/lib/upgrade.js
+++ b/lib/upgrade.js
@@ -36,7 +36,9 @@ upgradeOldSerialized = function (oldSerialized, password, callback) {
     var derivedKey = legacyGenerateEncKey(password, oldKS.salt, oldKS.keyHash);
     var seed = legacyDecryptString(oldKS.encSeed, derivedKey);
     keystore.deriveKeyFromPassword(password, function(err, pwDerivedKey) {
-      var newKeyStore = new keystore(seed, pwDerivedKey);
+      var newKeyStore = new keystore(seed, pwDerivedKey, "m/0'/0'/0'");
+      newKeyStore.setDefaultHdDerivationPath("m/0'/0'/0'");
+	
       var hdIndex = oldKS.hdIndex;
       newKeyStore.generateNewAddress(pwDerivedKey, hdIndex);
 
diff --git a/package.json b/package.json
index 5b65cb91..738cbe96 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
   "name": "eth-lightwallet",
-  "version": "2.3.0",
+  "version": "3.0.0",
   "description": "A lightweight ethereum javascript wallet.",
   "main": "index.js",
   "repository": {
diff --git a/test/fixtures/keystore.json b/test/fixtures/keystore.json
index 1acd00c1..ef78aaee 100644
--- a/test/fixtures/keystore.json
+++ b/test/fixtures/keystore.json
@@ -43,7 +43,13 @@
                                   "70d505a34e1ff438a6e0fca3ba37ba8e3c7d7b9843a5762b45d3be9e4d38633f",
                                   "7c2864ef868146251c881d2cb4e92cab3a1868bb3fc49b233a4471dcb1bc050e",
                                   "9c493f840b54cb4d48c1dbc8dacf4b7fa6a471e4f462eae3f64ebf10fcd9430c",
-                                  "170023f3a4ef99ae36f97bfedb8e55be277755a2b1b8caa35067cfe93e467b1d" ]}
+                                  "170023f3a4ef99ae36f97bfedb8e55be277755a2b1b8caa35067cfe93e467b1d" ]},
+
+     "m/44/66/0'/0" : {"addresses" : ["627ac4c2d731e12fb386bd649114a08ebcc0c33f",
+                                      "28ad3648ab755e505af7f07c9e8aa2ed70676c6d",
+                                      "623c0fa7a6bb3ceabb56b6d6d034fc12cb835f0b",
+                                      "17820c2129aa8d0b5c05e66d467b5fe6c1da6551",
+                                      "5c52998d98cf4c38a6301b6739b242d05a7dee19"]}
      
 
     },
diff --git a/test/keystore.js b/test/keystore.js
index 529a24c0..f943ff9b 100644
--- a/test/keystore.js
+++ b/test/keystore.js
@@ -168,20 +168,33 @@ describe("Keystore", function() {
 
     var N = fixtures.valid.length;
 
-      it("returns a new address, next in hd wallet", function(done) {
+      it("returns a new address with path m/0'/0'/0', next in hd wallet", function(done) {
         this.timeout(10000);
+	var hdPath = "m/0'/0'/0'";
         for (var i=0; i<N; i++) {
-          var ks = new keyStore(fixtures.valid[i].mnSeed, Uint8Array.from(fixtures.valid[i].pwDerivedKey))
+          var ks = new keyStore(fixtures.valid[i].mnSeed, Uint8Array.from(fixtures.valid[i].pwDerivedKey), hdPath)
           var numAddresses = fixtures.valid[i].hdIndex+1;
-          ks.generateNewAddress(Uint8Array.from(fixtures.valid[i].pwDerivedKey), numAddresses);
-          var addresses = ks.getAddresses();
+          ks.generateNewAddress(Uint8Array.from(fixtures.valid[i].pwDerivedKey), numAddresses, hdPath);
+          var addresses = ks.getAddresses(hdPath);
           var addr = addresses[addresses.length-1];
-          var priv = ks.exportPrivateKey(addr, Uint8Array.from(fixtures.valid[i].pwDerivedKey));
+          var priv = ks.exportPrivateKey(addr, Uint8Array.from(fixtures.valid[i].pwDerivedKey), hdPath);
           expect(addr).to.equal(fixtures.valid[i].address);
           expect(priv).to.equal(fixtures.valid[i].privKeyHex);
         }
         done();
       });
+
+      it("returns a new address with the new default path m/44/66/0'/0", function(done) {
+        this.timeout(10000);
+        var ks = new keyStore(fixtures.valid[0].mnSeed, Uint8Array.from(fixtures.valid[0].pwDerivedKey))
+        var numAddresses = fixtures.valid[0]["m/44/66/0'/0"].addresses.length;
+        ks.generateNewAddress(Uint8Array.from(fixtures.valid[0].pwDerivedKey), numAddresses);
+        var addresses = ks.getAddresses();
+	for (var i=0; i<numAddresses; i++) {
+          expect(fixtures.valid[0]["m/44/66/0'/0"].addresses[i]).to.equal(addresses[i]);
+	}
+        done();
+      });
   });
 
 
@@ -274,19 +287,21 @@ describe("Keystore", function() {
     });
 
     it('implements signTransaction correctly', function(done) {
+      var hdPath = "m/0'/0'/0'";
       var pw = Uint8Array.from(fixtures.valid[0].pwDerivedKey)
-      var ks = new keyStore(fixtures.valid[0].mnSeed, pw)
-      ks.generateNewAddress(pw)
-      var addr = ks.getAddresses()[0]
+      var ks = new keyStore(fixtures.valid[0].mnSeed, pw, hdPath)
+      ks.generateNewAddress(pw, 1, hdPath)
+      var addr = ks.getAddresses(hdPath)[0]
 
       // Trivial passwordProvider
       ks.passwordProvider = function(callback) {callback(null, fixtures.valid[0].password)}
 
       var txParams = fixtures.valid[0].web3TxParams
+      //Observe hdPath being passed as third argument to signTransaction
       ks.signTransaction(txParams, function (err, signedTx) {
-        expect(signedTx.slice(2)).to.equal(fixtures.valid[0].rawSignedTx)
+          expect(signedTx.slice(2)).to.equal(fixtures.valid[0].rawSignedTx)
         done();
-      });
+      }, hdPath);
 
     });
 
diff --git a/test/signing.js b/test/signing.js
index 3da8ffe3..a6580249 100644
--- a/test/signing.js
+++ b/test/signing.js
@@ -9,8 +9,10 @@ var nacl = require('tweetnacl')
 describe("Signing", function () {
   describe("signTx", function() {
     it('signs a transaction deterministically', function(done) {
+      var hdPath = "m/0'/0'/0'";
       var pw = Uint8Array.from(fixtures.valid[0].pwDerivedKey)
-      var ks = new keyStore(fixtures.valid[0].mnSeed, pw)
+      var ks = new keyStore(fixtures.valid[0].mnSeed, pw, hdPath)
+      ks.setDefaultHdDerivationPath(hdPath);
       ks.generateNewAddress(pw)
       var addr = ks.getAddresses()[0]
       expect('0x' + addr).to.equal(fixtures.valid[0].ethjsTxParams.from)
@@ -58,8 +60,10 @@ describe("Signing", function () {
 
   describe("signMsg", function() {
     it('signs a message deterministically', function(done) {
+      var hdPath = "m/0'/0'/0'";
       var pw = Uint8Array.from(fixtures.valid[0].pwDerivedKey)
-      var ks = new keyStore(fixtures.valid[0].mnSeed, pw)
+      var ks = new keyStore(fixtures.valid[0].mnSeed, pw, hdPath)
+      ks.setDefaultHdDerivationPath(hdPath)
       ks.generateNewAddress(pw)
       var addr = ks.getAddresses()[0]
       expect('0x' + addr).to.equal(fixtures.valid[0].ethjsTxParams.from)