diff --git a/__tests__/shared/didcomm.ts b/__tests__/shared/didcomm.ts
index 918fceb3f..71136df6a 100644
--- a/__tests__/shared/didcomm.ts
+++ b/__tests__/shared/didcomm.ts
@@ -18,7 +18,7 @@ export default (testContext: {
       agent = testContext.getAgent()
 
       sender = await agent.didManagerImport({
-        did: 'did:key:z6MkgbqNU4uF9NKSz5BqJQ4XKVHuQZYcUZP8pXGsJC8nTHwo',
+        did: 'did:fake:z6MkgbqNU4uF9NKSz5BqJQ4XKVHuQZYcUZP8pXGsJC8nTHwo',
         keys: [
           {
             type: 'Ed25519',
@@ -30,12 +30,12 @@ export default (testContext: {
           },
         ],
         services: [],
-        provider: 'did:key',
+        provider: 'did:fake',
         alias: 'sender',
       })
 
       receiver = await agent.didManagerImport({
-        did: 'did:key:z6MkrPhffVLBZpxH7xvKNyD4sRVZeZsNTWJkLdHdgWbfgNu3',
+        did: 'did:fake:z6MkrPhffVLBZpxH7xvKNyD4sRVZeZsNTWJkLdHdgWbfgNu3',
         keys: [
           {
             type: 'Ed25519',
@@ -47,7 +47,7 @@ export default (testContext: {
           },
         ],
         services: [],
-        provider: 'did:key',
+        provider: 'did:fake',
         alias: 'receiver',
       })
       return true
diff --git a/packages/did-comm/src/action-handler.ts b/packages/did-comm/src/action-handler.ts
index 0730b2c37..997a53438 100644
--- a/packages/did-comm/src/action-handler.ts
+++ b/packages/did-comm/src/action-handler.ts
@@ -276,18 +276,7 @@ export class DIDComm implements IAgentPlugin {
 
     // 2.2 get public key bytes and key IDs for supported recipient keys
     const recipients: { kid: string; publicKeyBytes: Uint8Array }[] = keyAgreementKeys
-      .map((pk) => {
-        const publicKeyHex = pk.publicKeyHex!
-        let publicKeyBytes = u8a.fromString(publicKeyHex, 'base16')
-        if (['Ed25519VerificationKey2018', 'Ed25519'].includes(pk.type)) {
-          publicKeyBytes = convertPublicKeyToX25519(publicKeyBytes)
-        } else if (!['X25519KeyAgreementKey2019', 'X25519'].includes(pk.type)) {
-          // other key agreement keys not supported
-          return null
-        }
-        const kid = pk.id
-        return { kid, publicKeyBytes }
-      })
+      .map((pk) => ({ kid: pk.id, publicKeyBytes: u8a.fromString(pk.publicKeyHex!, 'base16') }))
       .filter(isDefined)
 
     // 3. create Encrypter for each recipient
diff --git a/packages/did-comm/src/utils.ts b/packages/did-comm/src/utils.ts
index ba065dbd3..49c5a1a33 100644
--- a/packages/did-comm/src/utils.ts
+++ b/packages/did-comm/src/utils.ts
@@ -245,7 +245,11 @@ export async function dereferenceDidKeys(
     .map((key) => {
       const hexKey = convertToPublicKeyHex(key, convert)
       const { publicKeyHex, publicKeyBase58, publicKeyBase64, publicKeyJwk, ...keyProps } = key
-      return { ...keyProps, publicKeyHex: hexKey }
+      const newKey = { ...keyProps, publicKeyHex: hexKey }
+      if (convert && 'Ed25519VerificationKey2018' === newKey.type) {
+        newKey.type = 'X25519KeyAgreementKey2019'
+      }
+      return newKey
     })
     .filter((key) => key.publicKeyHex.length > 0)
 }