diff --git a/docs/configuration.md b/docs/configuration.md
index 3fde6911..b2ace511 100644
--- a/docs/configuration.md
+++ b/docs/configuration.md
@@ -41,10 +41,8 @@ Or provide a file path:
 
 ```php
 use Lcobucci\JWT\Signer\Key\InMemory;
-use Lcobucci\JWT\Signer\Key\LocalFileReference;
 
 $key = InMemory::file(__DIR__ . '/path-to-my-key-stored-in-a-file.pem'); // this reads the file and keeps its contents in memory
-$key = LocalFileReference::file(__DIR__ . '/path-to-my-key-stored-in-a-file.pem'); // this just keeps a reference to file
 ```
 
 #### For symmetric algorithms
@@ -78,13 +76,12 @@ This means that it's fine to distribute your **public key**. However, the **priv
 ```php
 use Lcobucci\JWT\Configuration;
 use Lcobucci\JWT\Signer;
-use Lcobucci\JWT\Signer\Key\LocalFileReference;
 use Lcobucci\JWT\Signer\Key\InMemory;
 
 $configuration = Configuration::forAsymmetricSigner(
     // You may use RSA or ECDSA and all their variations (256, 384, and 512)
     new Signer\RSA\Sha256(),
-    LocalFileReference::file(__DIR__ . '/my-private-key.pem'),
+    InMemory::file(__DIR__ . '/my-private-key.pem'),
     InMemory::base64Encoded('mBC5v1sOKVvbdEitdSBenu59nfNfhwkedkJVNabosTw=')
     // You may also override the JOSE encoder/decoder if needed by providing extra arguments here
 );
diff --git a/docs/upgrading.md b/docs/upgrading.md
index 645d97cb..7401fdc6 100644
--- a/docs/upgrading.md
+++ b/docs/upgrading.md
@@ -96,9 +96,8 @@ You can find more information on how to use the configuration object, [here](con
 ### Use new `Key` objects
 
 `Lcobucci\JWT\Signer\Key` has been converted to an interface in `v4.0`.
-We provide two new implementations: `Lcobucci\JWT\Signer\Key\InMemory` and `Lcobucci\JWT\Signer\Key\LocalFileReference`.
 
-`Lcobucci\JWT\Signer\Key\InMemory` is a drop-in replacement of the behaviour for `Lcobucci\JWT\Signer\Key` in `v3.x`.
+We provide `Lcobucci\JWT\Signer\Key\InMemory`, a drop-in replacement of the behaviour for `Lcobucci\JWT\Signer\Key` in `v3.x`.
 You will need to pick the appropriated named constructor to migrate your code:
 
 ```diff
diff --git a/src/Signer/Key/LocalFileReference.php b/src/Signer/Key/LocalFileReference.php
index 6b52ec8d..dafce109 100644
--- a/src/Signer/Key/LocalFileReference.php
+++ b/src/Signer/Key/LocalFileReference.php
@@ -8,6 +8,7 @@
 use function strpos;
 use function substr;
 
+/** @deprecated Use \Lcobucci\JWT\Signer\Key\InMemory::file() instead */
 final class LocalFileReference extends Key
 {
     const PATH_PREFIX = 'file://';
@@ -26,13 +27,6 @@ public static function file($path, $passphrase = '')
             $path = substr($path, 7);
         }
 
-        if (! file_exists($path)) {
-            throw FileCouldNotBeRead::onPath($path);
-        }
-
-        $key = new self('', $passphrase);
-        $key->content = self::PATH_PREFIX . $path;
-
-        return $key;
+        return new self(self::PATH_PREFIX . $path, $passphrase);
     }
 }
diff --git a/test/functional/HmacTokenTest.php b/test/functional/HmacTokenTest.php
index 52a2e1ac..be344928 100644
--- a/test/functional/HmacTokenTest.php
+++ b/test/functional/HmacTokenTest.php
@@ -10,10 +10,16 @@
 use Lcobucci\JWT\Builder;
 use Lcobucci\JWT\CheckForDeprecations;
 use Lcobucci\JWT\Parser;
+use Lcobucci\JWT\Signer\Key\InMemory;
+use Lcobucci\JWT\Signer\Key\LocalFileReference;
 use Lcobucci\JWT\Token;
 use Lcobucci\JWT\Signature;
 use Lcobucci\JWT\Signer\Hmac\Sha256;
 use Lcobucci\JWT\Signer\Hmac\Sha512;
+use ReflectionProperty;
+use function file_put_contents;
+use function sys_get_temp_dir;
+use function tempnam;
 
 /**
  * @author Luís Otávio Cobucci Oblonczyk <lcobucci@gmail.com>
@@ -197,4 +203,39 @@ public function everythingShouldWorkWhenUsingATokenGeneratedByOtherLibs()
         $this->assertEquals('world', $token->getClaim('hello'));
         $this->assertTrue($token->verify($this->signer, 'testing'));
     }
+
+    /**
+     * @test
+     *
+     * @coversNothing
+     *
+     * @see \Lcobucci\JWT\Signer\Key::setContent()
+     */
+    public function signatureValidationWithLocalFileKeyReferenceWillOperateWithKeyContents()
+    {
+        $key = tempnam(sys_get_temp_dir(), 'key');
+        file_put_contents($key, 'just a dummy key');
+
+        $validKey   = LocalFileReference::file($key);
+        $invalidKey = InMemory::plainText($key);
+        $signer     = new Sha256();
+
+        // 3.4.x implicitly extracts key contents, when `file://` is detected
+        $reflectionContents = new ReflectionProperty(InMemory::class, 'content');
+        $reflectionContents->setAccessible(true);
+        $reflectionContents->setValue($invalidKey, 'file://' . $key);
+
+        $token = (new Builder())
+            ->withClaim('foo', 'bar')
+            ->getToken($signer, $validKey);
+
+        self::assertFalse(
+            $token->verify($signer, $invalidKey),
+            'Token cannot be validated against the **path** of the key'
+        );
+        self::assertTrue(
+            $token->verify($signer, $validKey),
+            'Token can be validated against the **contents** of the key'
+        );
+    }
 }