diff --git a/lib/core/backup_service.dart b/lib/core/backup_service.dart
index 17c68a639..4a27652ae 100644
--- a/lib/core/backup_service.dart
+++ b/lib/core/backup_service.dart
@@ -511,7 +511,7 @@ class BackupService {
       return {
         'name': walletInfo.name,
         'type': walletInfo.type.toString(),
-        'password': await _keyService.getWalletPassword(walletName: walletInfo.name)
+        'password': await _keyService.getWalletPasswordV2(walletName: walletInfo.name)
       };
     }));
     final backupPasswordKey = generateStoreKeyFor(key: SecretStoreKey.backupPassword);
diff --git a/lib/core/key_service.dart b/lib/core/key_service.dart
index fce254ea2..a2ffed4cc 100644
--- a/lib/core/key_service.dart
+++ b/lib/core/key_service.dart
@@ -7,25 +7,41 @@ class KeyService {
 
   final FlutterSecureStorage _secureStorage;
 
-  Future<String> getWalletPassword({required String walletName}) async {
-    final key = generateStoreKeyFor(
-        key: SecretStoreKey.moneroWalletPassword, walletName: walletName);
+  Future<String> getWalletPasswordV2({required String walletName}) async {
+    final key =
+        generateStoreKeyFor(key: SecretStoreKey.moneroWalletPassword, walletName: walletName);
     final encodedPassword = await _secureStorage.read(key: key);
-    return decodeWalletPassword(password: encodedPassword!);
+    return decodeWalletPasswordV2(password: encodedPassword!);
   }
 
-  Future<void> saveWalletPassword({required String walletName, required String password}) async {
-    final key = generateStoreKeyFor(
-        key: SecretStoreKey.moneroWalletPassword, walletName: walletName);
-    final encodedPassword = encodeWalletPassword(password: password);
+  Future<void> saveWalletPasswordV2({required String walletName, required String password}) async {
+    final key =
+        generateStoreKeyFor(key: SecretStoreKey.moneroWalletPassword, walletName: walletName);
+    final encodedPassword = await encodeWalletPasswordV2(password: password);
+
+    await _secureStorage.delete(key: key);
+    await _secureStorage.write(key: key, value: encodedPassword);
+  }
+
+  Future<String> getWalletPasswordV1({required String walletName}) async {
+    final key =
+        generateStoreKeyFor(key: SecretStoreKey.moneroWalletPassword, walletName: walletName);
+    final encodedPassword = await _secureStorage.read(key: key);
+    return decodeWalletPasswordV1(password: encodedPassword!);
+  }
+
+  Future<void> saveWalletPasswordV1({required String walletName, required String password}) async {
+    final key =
+        generateStoreKeyFor(key: SecretStoreKey.moneroWalletPassword, walletName: walletName);
+    final encodedPassword = encodeWalletPasswordV1(password: password);
 
     await _secureStorage.delete(key: key);
     await _secureStorage.write(key: key, value: encodedPassword);
   }
 
   Future<void> deleteWalletPassword({required String walletName}) async {
-    final key = generateStoreKeyFor(
-        key: SecretStoreKey.moneroWalletPassword, walletName: walletName);
+    final key =
+        generateStoreKeyFor(key: SecretStoreKey.moneroWalletPassword, walletName: walletName);
 
     await _secureStorage.delete(key: key);
   }
diff --git a/lib/core/wallet_loading_service.dart b/lib/core/wallet_loading_service.dart
index 3323e7831..c71a5a88c 100644
--- a/lib/core/wallet_loading_service.dart
+++ b/lib/core/wallet_loading_service.dart
@@ -17,10 +17,10 @@ class WalletLoadingService {
   Future<void> renameWallet(
       WalletType type, String name, String newName) async {
     final walletService = walletServiceFactory.call(type);
-    final password = await keyService.getWalletPassword(walletName: name);
+    final password = await keyService.getWalletPasswordV2(walletName: name);
 
     // Save the current wallet's password to the new wallet name's key
-    await keyService.saveWalletPassword(
+    await keyService.saveWalletPasswordV2(
         walletName: newName, password: password);
     // Delete previous wallet name from keyService to keep only new wallet's name
     // otherwise keeps duplicate (old and new names)
diff --git a/lib/entities/default_settings_migration.dart b/lib/entities/default_settings_migration.dart
index 0314031ee..eae134249 100644
--- a/lib/entities/default_settings_migration.dart
+++ b/lib/entities/default_settings_migration.dart
@@ -1,5 +1,6 @@
 import 'dart:io' show Directory, File, Platform;
 import 'package:cake_wallet/bitcoin/bitcoin.dart';
+import 'package:cake_wallet/core/key_service.dart';
 import 'package:cake_wallet/entities/encrypt.dart';
 import 'package:cake_wallet/entities/exchange_api_mode.dart';
 import 'package:cw_core/pathForWallet.dart';
@@ -187,7 +188,8 @@ Future<void> defaultSettingsMigration(
           await rewriteSecureStoragePin(secureStorage: secureStorage);
           break;
         case 26:
-          await pinEncryptionMigration(secureStorage: secureStorage);
+          await pinEncryptionMigration(
+              secureStorage: secureStorage, walletInfoSource: walletInfoSource);
           break;
         default:
           break;
@@ -382,7 +384,9 @@ Node getMoneroDefaultNode({required Box<Node> nodes}) {
   }
 }
 
-Future<void> pinEncryptionMigration({required FlutterSecureStorage secureStorage}) async {
+Future<void> pinEncryptionMigration(
+    {required FlutterSecureStorage secureStorage,
+    required Box<WalletInfo> walletInfoSource}) async {
   try {
     // first, get the encoded pin:
     final keyForPinCode = generateStoreKeyFor(key: SecretStoreKey.pinCodePassword);
@@ -407,6 +411,14 @@ Future<void> pinEncryptionMigration({required FlutterSecureStorage secureStorage
       iOptions: IOSOptions(accessibility: KeychainAccessibility.first_unlock),
       mOptions: MacOsOptions(accessibility: KeychainAccessibility.first_unlock),
     );
+
+    KeyService keyService = KeyService(secureStorage);
+    
+    // now do the same for all wallet passwords:
+    await Future.forEach(walletInfoSource.values, (WalletInfo walletInfo) async {
+      String walletPassword = await keyService.getWalletPasswordV1(walletName: walletInfo.name);
+      await keyService.saveWalletPasswordV2(walletName: walletInfo.name, password: walletPassword);
+    });
   } catch (e) {
     // failure isn't really an option since we'll be updating how pins are stored and used
     print("pinEncryptionMigration: $e");
diff --git a/lib/entities/encrypt.dart b/lib/entities/encrypt.dart
index 9f41cb111..76ce49cc0 100644
--- a/lib/entities/encrypt.dart
+++ b/lib/entities/encrypt.dart
@@ -1,7 +1,11 @@
+import 'dart:convert';
+import 'dart:typed_data';
+
 import 'package:encrypt/encrypt.dart';
 // import 'package:password/password.dart';
 import 'package:cake_wallet/.secrets.g.dart' as secrets;
 import 'package:dargon2_flutter/dargon2_flutter.dart';
+import 'package:cake_backup/backup.dart' as cake_backup;
 
 Future<String> argon2Hash({required String password}) async {
   final result = await argon2.hashPasswordString(password, salt: Salt.newSalt());
@@ -13,6 +17,16 @@ Future<bool> verifyArgon2Hash({required String password, required String hash})
   return argon2.verifyHashString(password, hash);
 }
 
+Future<String> encodeWalletPasswordV2({required String password}) async {
+  final _key = secrets.shortKey + secrets.walletSalt;
+  return utf8.decode(await cake_backup.encrypt(password, Uint8List.fromList(utf8.encode(_key))));
+}
+
+Future<String> decodeWalletPasswordV2({required String password}) async {
+  final _key = secrets.shortKey + secrets.walletSalt;
+  return utf8.decode(await cake_backup.decrypt(password, Uint8List.fromList(utf8.encode(_key))));
+}
+
 // @@@@@@@@@@@@@@@ OLD (kept for reference purposes, do not use!) @@@@@@@@@@@@@
 
 String encrypt({required String source, required String key}) {
@@ -50,13 +64,13 @@ String decodedPinCode({required String pin}) {
   return decrypted.substring(secrets.key.length, decrypted.length);
 }
 
-String encodeWalletPassword({required String password}) {
+String encodeWalletPasswordV1({required String password}) {
   final source = password;
   final _key = secrets.shortKey + secrets.walletSalt;
   return encrypt(source: source, key: _key);
 }
 
-String decodeWalletPassword({required String password}) {
+String decodeWalletPasswordV1({required String password}) {
   final source = password;
   final _key = secrets.shortKey + secrets.walletSalt;
   return decrypt(source: source, key: _key);