diff --git a/apps/meteor/server/settings/federation-service.ts b/apps/meteor/server/settings/federation-service.ts
index 3ee05dcdd3003..75271da3e2dcc 100644
--- a/apps/meteor/server/settings/federation-service.ts
+++ b/apps/meteor/server/settings/federation-service.ts
@@ -24,5 +24,12 @@ export const createFederationServiceSettings = async (): Promise<void> => {
 			public: true,
 			alert: 'Federation_Service_Matrix_Port_Alert',
 		});
+
+		await this.add('Federation_Service_Matrix_Signing_Key', '', {
+			type: 'string',
+			i18nLabel: 'Federation_Service_Matrix_Signing_Key',
+			i18nDescription: 'Federation_Service_Matrix_Signing_Key_Description',
+			public: false,
+		});
 	});
 };
diff --git a/ee/packages/federation-matrix/src/FederationMatrix.ts b/ee/packages/federation-matrix/src/FederationMatrix.ts
index a4b35262f5e27..726f0424d6f0a 100644
--- a/ee/packages/federation-matrix/src/FederationMatrix.ts
+++ b/ee/packages/federation-matrix/src/FederationMatrix.ts
@@ -1,6 +1,5 @@
 import 'reflect-metadata';
 
-import { toUnpaddedBase64 } from '@hs/core';
 import { ConfigService, createFederationContainer, getAllServices } from '@hs/federation-sdk';
 import type { HomeserverEventSignatures, HomeserverServices, FederationContainerOptions } from '@hs/federation-sdk';
 import { type IFederationMatrixService, ServiceClass, Settings } from '@rocket.chat/core-services';
@@ -40,40 +39,24 @@ export class FederationMatrix extends ServiceClass implements IFederationMatrixS
 
 	static async create(emitter?: Emitter<HomeserverEventSignatures>): Promise<FederationMatrix> {
 		const instance = new FederationMatrix(emitter);
+		const settingsSigningKey = await Settings.get<string>('Federation_Service_Matrix_Signing_Key');
 		const config = new ConfigService({
+			serverName: process.env.MATRIX_SERVER_NAME || 'rc1',
+			keyRefreshInterval: Number.parseInt(process.env.MATRIX_KEY_REFRESH_INTERVAL || '60', 10),
+			matrixDomain: process.env.MATRIX_DOMAIN || 'rc1',
+			version: process.env.SERVER_VERSION || '1.0',
+			port: Number.parseInt(process.env.SERVER_PORT || '8080', 10),
+			signingKey: settingsSigningKey,
+			signingKeyPath: process.env.CONFIG_FOLDER || './rc1.signing.key',
 			database: {
 				uri: process.env.MONGODB_URI || 'mongodb://localhost:3001/meteor',
 				name: process.env.DATABASE_NAME || 'meteor',
 				poolSize: Number.parseInt(process.env.DATABASE_POOL_SIZE || '10', 10),
 			},
-			server: {
-				name: process.env.SERVER_NAME || 'rc1',
-				version: process.env.SERVER_VERSION || '1.0',
-				port: Number.parseInt(process.env.SERVER_PORT || '8080', 10),
-				baseUrl: process.env.SERVER_BASE_URL || 'http://rc1:8080',
-				host: process.env.SERVER_HOST || '0.0.0.0',
-			},
-			matrix: {
-				serverName: process.env.MATRIX_SERVER_NAME || 'rc1',
-				domain: process.env.MATRIX_DOMAIN || 'rc1',
-				keyRefreshInterval: Number.parseInt(process.env.MATRIX_KEY_REFRESH_INTERVAL || '60', 10),
-			},
-			signingKeyPath: process.env.CONFIG_FOLDER || './rc1.signing.key',
 		});
-		const matrixConfig = config.getMatrixConfig();
-		const serverConfig = config.getServerConfig();
-		const signingKeys = await config.getSigningKey();
-		const signingKey = signingKeys[0];
 
 		const containerOptions: FederationContainerOptions = {
 			emitter: instance.eventHandler,
-			federationOptions: {
-				serverName: matrixConfig.serverName,
-				signingKey: toUnpaddedBase64(signingKey.privateKey),
-				signingKeyId: `ed25519:${signingKey.version}`,
-				timeout: 30000,
-				baseUrl: serverConfig.baseUrl,
-			},
 		};
 
 		await createFederationContainer(containerOptions, config);
@@ -131,7 +114,7 @@ export class FederationMatrix extends ServiceClass implements IFederationMatrixS
 			this.logger.warn('Homeserver services not available, skipping room creation');
 			return;
 		}
-		
+
 		if (!(room.t === 'c' || room.t === 'p')) {
 			throw new Error('Room is not a public or private room');
 		}
diff --git a/packages/i18n/src/locales/en.i18n.json b/packages/i18n/src/locales/en.i18n.json
index 395db02398f58..f91f0ad65dcbe 100644
--- a/packages/i18n/src/locales/en.i18n.json
+++ b/packages/i18n/src/locales/en.i18n.json
@@ -2126,6 +2126,8 @@
   "Federation_Service_Matrix_Port_Description": "The port of the Matrix server to use for federation.",
   "Federation_Service_Matrix_Port_Alert": "If you're using a DNS or a reverse proxy, you should set this to the port of the DNS handling the federation traffic. E.g. your server is running on port 3000 and you're using a DNS to handle incoming traffic from port 3000 to the DNS name rc1.server.com only. In this case, you should set this to 443.",
   "Federation_Service_Alert": "This feature is in beta and may not be stable. Please be aware that it may change, break, or even be removed in the future without any notice.",
+  "Federation_Service_Matrix_Signing_Key": "Matrix server signing key",
+  "Federation_Service_Matrix_Signing_Key_Description": "The private signing key used by your Matrix server to authenticate federation requests. Format should be: algorithm version base64<privateKey>. This is typically an Ed25519 algorithm key (version 4), encoded as base64. It is essential for secure communication between federated Matrix servers and should be kept confidential.",
   "Field": "Field",
   "Field_removed": "Field removed",
   "Field_required": "Field required",