diff --git a/BTCPayServer.Tests/FastTests.cs b/BTCPayServer.Tests/FastTests.cs
index ecb685d58..2a8378554 100644
--- a/BTCPayServer.Tests/FastTests.cs
+++ b/BTCPayServer.Tests/FastTests.cs
@@ -645,6 +645,49 @@ namespace BTCPayServer.Tests
             Assert.Equal(4, tor.Services.Length);
         }
 
+        [Fact]
+        public void CanParseDerivationSchemes()
+        {
+            var networkProvider = new BTCPayNetworkProvider(ChainName.Regtest);
+            var parser = new DerivationSchemeParser(networkProvider.BTC);
+
+            // xpub
+            var xpub = "xpub661MyMwAqRbcGVBsTGeNZN6QGVHmMHLdSA4FteGsRrEriu4pnVZMZWnruFFFXkMnyoBjyHndD3Qwcfz4MPzBUxjSevweNFQx7SAYZATtcDw";
+            DerivationStrategyBase strategyBase = parser.Parse(xpub);
+            Assert.IsType<DirectDerivationStrategy>(strategyBase);
+            Assert.True(((DirectDerivationStrategy)strategyBase).Segwit);
+            Assert.Equal("tpubD6NzVbkrYhZ4YHNiuTdTmHRmbcPRLfqgyneZFCL1mkzkUBjXriQShxTh9HL34FK2mhieasJVk9EzJrUfkFqRNQBjiXgx3n5BhPkxKBoFmaS", strategyBase.ToString());
+
+            // Multisig
+            var multisig = "wsh(sortedmulti(2,[62a7956f/84'/1'/0']tpubDDXgATYzdQkHHhZZCMcNJj8BGDENvzMVou5v9NdxiP4rxDLj33nS233dGFW4htpVZSJ6zds9eVqAV9RyRHHiKtwQKX8eR4n4KN3Dwmj7A3h/0/*,[11312aa2/84'/1'/0']tpubDC8a54NFtQtMQAZ97VhoU9V6jVTvi9w4Y5SaAXJSBYETKg3AoX5CCKndznhPWxJUBToPCpT44s86QbKdGpKAnSjcMTGW4kE6UQ8vpBjcybW/0/*,[8f71b834/84'/1'/0']tpubDChjnP9LXNrJp43biqjY7FH93wgRRNrNxB4Q8pH7PPRy8UPcH2S6V46WGVJ47zVGF7SyBJNCpnaogsFbsybVQckGtVhCkng3EtFn8qmxptS/0/*))";
+            var expected = "2-of-tpubDDXgATYzdQkHHhZZCMcNJj8BGDENvzMVou5v9NdxiP4rxDLj33nS233dGFW4htpVZSJ6zds9eVqAV9RyRHHiKtwQKX8eR4n4KN3Dwmj7A3h-tpubDC8a54NFtQtMQAZ97VhoU9V6jVTvi9w4Y5SaAXJSBYETKg3AoX5CCKndznhPWxJUBToPCpT44s86QbKdGpKAnSjcMTGW4kE6UQ8vpBjcybW-tpubDChjnP9LXNrJp43biqjY7FH93wgRRNrNxB4Q8pH7PPRy8UPcH2S6V46WGVJ47zVGF7SyBJNCpnaogsFbsybVQckGtVhCkng3EtFn8qmxptS";
+            (strategyBase, RootedKeyPath[] rootedKeyPath) = parser.ParseOutputDescriptor(multisig);
+            Assert.Equal(3, rootedKeyPath.Length);
+            Assert.IsType<P2WSHDerivationStrategy>(strategyBase);
+            Assert.IsType<MultisigDerivationStrategy>(((P2WSHDerivationStrategy)strategyBase).Inner);
+            Assert.Equal(expected, strategyBase.ToString());
+
+            var inner = (MultisigDerivationStrategy)((P2WSHDerivationStrategy)strategyBase).Inner;
+            Assert.False(inner.IsLegacy);
+            Assert.Equal(3, inner.Keys.Count);
+            Assert.Equal(2, inner.RequiredSignatures);
+            Assert.Equal(expected, inner.ToString());
+            
+            // Output Descriptor
+            networkProvider = new BTCPayNetworkProvider(ChainName.Mainnet);
+            parser = new DerivationSchemeParser(networkProvider.BTC);
+            var od = "wpkh([8bafd160/49h/0h/0h]xpub661MyMwAqRbcGVBsTGeNZN6QGVHmMHLdSA4FteGsRrEriu4pnVZMZWnruFFFXkMnyoBjyHndD3Qwcfz4MPzBUxjSevweNFQx7SAYZATtcDw/0/*)#9x4vkw48";
+            (strategyBase, rootedKeyPath) = parser.ParseOutputDescriptor(od);
+            Assert.Equal(1, rootedKeyPath.Length);
+            Assert.IsType<DirectDerivationStrategy>(strategyBase);
+            Assert.True(((DirectDerivationStrategy)strategyBase).Segwit);
+            
+            // Failure cases
+            Assert.Throws<FormatException>(() => { parser.Parse("xpub 661MyMwAqRbcGVBsTGeNZN6QGVHmMHLdSA4FteGsRrEriu4pnVZMZWnruFFFXkMnyoBjyHndD3Qwcfz4MPzBUxjSevweNFQx7SAYZATtcDw"); }); // invalid format because of space
+            Assert.Throws<ParsingException>(() => { parser.ParseOutputDescriptor("invalid"); }); // invalid in general
+            Assert.Throws<ParsingException>(() => { parser.ParseOutputDescriptor("wpkh([8b60afd1/49h/0h/0h]xpub661MyMwAFXkMnyoBjyHndD3QwRbcGVBsTGeNZN6QGVHcfz4MPzBUxjSevweNFQx7SqmMHLdSA4FteGsRrEriu4pnVZMZWnruFFAYZATtcDw/0/*)#9x4vkw48"); }); // invalid checksum
+        }
+
         [Fact]
         public void ParseDerivationSchemeSettings()
         {
diff --git a/BTCPayServer/DerivationSchemeParser.cs b/BTCPayServer/DerivationSchemeParser.cs
index f74dfc0e3..8d7cdb834 100644
--- a/BTCPayServer/DerivationSchemeParser.cs
+++ b/BTCPayServer/DerivationSchemeParser.cs
@@ -33,7 +33,6 @@ namespace BTCPayServer
                         {
                             throw new FormatException("Custom change paths are not supported.");
                         }
-
                         return (Parse($"{hd.Extkey}{suffix}"), null);
                     case PubKeyProvider.Origin origin:
                         var innerResult = ExtractFromPkProvider(origin.Inner, suffix);
@@ -42,7 +41,16 @@ namespace BTCPayServer
                         throw new ArgumentOutOfRangeException();
                 }
             }
-
+            
+            (DerivationStrategyBase, RootedKeyPath[]) ExtractFromMulti(OutputDescriptor.Multi multi)
+            {
+                var xpubs = multi.PkProviders.Select(provider => ExtractFromPkProvider(provider));
+                return (
+                    Parse(
+                        $"{multi.Threshold}-of-{(string.Join('-', xpubs.Select(tuple => tuple.Item1.ToString())))}{(multi.IsSorted ? "" : "-[keeporder]")}"),
+                    xpubs.SelectMany(tuple => tuple.Item2).ToArray());
+            }
+            
             ArgumentNullException.ThrowIfNull(str);
             str = str.Trim();
             var outputDescriptor = OutputDescriptor.Parse(str, Network);
@@ -55,11 +63,7 @@ namespace BTCPayServer
                 case OutputDescriptor.Combo _:
                     throw new FormatException("Only output descriptors of one format are supported.");
                 case OutputDescriptor.Multi multi:
-                    var xpubs = multi.PkProviders.Select(provider => ExtractFromPkProvider(provider));
-                    return (
-                        Parse(
-                            $"{multi.Threshold}-of-{(string.Join('-', xpubs.Select(tuple => tuple.Item1.ToString())))}{(multi.IsSorted ? "" : "-[keeporder]")}"),
-                        xpubs.SelectMany(tuple => tuple.Item2).ToArray());
+                    return ExtractFromMulti(multi);
                 case OutputDescriptor.PKH pkh:
                     return ExtractFromPkProvider(pkh.PkProvider, "-[legacy]");
                 case OutputDescriptor.SH sh:
@@ -79,11 +83,9 @@ namespace BTCPayServer
                     throw new FormatException("sh descriptors are only supported with multsig(legacy or p2wsh) and segwit(p2wpkh)");
                 case OutputDescriptor.WPKH wpkh:
                     return ExtractFromPkProvider(wpkh.PkProvider, "");
-                case OutputDescriptor.WSH wsh:
-                    if (wsh.Inner is OutputDescriptor.Multi)
-                    {
-                        return ParseOutputDescriptor(wsh.Inner.ToString());
-                    }
+                case OutputDescriptor.WSH { Inner: OutputDescriptor.Multi multi }:
+                    return ExtractFromMulti(multi);
+                case OutputDescriptor.WSH:
                     throw new FormatException("wsh descriptors are only supported with multisig");
                 default:
                     throw new ArgumentOutOfRangeException(nameof(outputDescriptor));