diff --git a/packages/keyring-api/src/api/account-options.test.ts b/packages/keyring-api/src/api/account-options.test.ts
index 1dd55686..b6c8f128 100644
--- a/packages/keyring-api/src/api/account-options.test.ts
+++ b/packages/keyring-api/src/api/account-options.test.ts
@@ -99,4 +99,27 @@ describe('api', () => {
       `At path: entropy.type -- Expected the literal \`"mnemonic"\`, but received: "${options.entropy.type}"`,
     );
   });
+
+  it('throws if options.entropy.type is Hardware (not implemented)', () => {
+    const options = {
+      entropy: { type: KeyringAccountEntropyTypeOption.Hardware },
+    };
+
+    expect(() => assert(options, KeyringAccountOptionsStruct)).toThrow(
+      `At path: entropy.type -- Expected the literal \`"mnemonic"\`, but received: "${KeyringAccountEntropyTypeOption.Hardware}"`,
+    );
+  });
+
+  it('throws if options.entropy.type is Hardware with additional fields', () => {
+    const options = {
+      entropy: {
+        type: KeyringAccountEntropyTypeOption.Hardware,
+        deviceId: 'some-device-id',
+      },
+    };
+
+    expect(() => assert(options, KeyringAccountOptionsStruct)).toThrow(
+      `At path: entropy.type -- Expected the literal \`"mnemonic"\`, but received: "${KeyringAccountEntropyTypeOption.Hardware}"`,
+    );
+  });
 });
diff --git a/packages/keyring-api/src/api/account-options.ts b/packages/keyring-api/src/api/account-options.ts
index a8fbbeb2..cc9c0270 100644
--- a/packages/keyring-api/src/api/account-options.ts
+++ b/packages/keyring-api/src/api/account-options.ts
@@ -25,6 +25,11 @@ export enum KeyringAccountEntropyTypeOption {
    */
   PrivateKey = 'private-key',
 
+  /**
+   * Indicates that the account was created from a hardware wallet.
+   */
+  Hardware = 'hardware',
+
   /**
    * Indicates that the account was created with custom, keyring-specific entropy.
    * This is an opaque type where the entropy source is managed internally by the keyring.