diff --git a/cmd/kaspawallet/daemon/server/address.go b/cmd/kaspawallet/daemon/server/address.go
index b609e570d..621c44232 100644
--- a/cmd/kaspawallet/daemon/server/address.go
+++ b/cmd/kaspawallet/daemon/server/address.go
@@ -3,6 +3,7 @@ package server
 import (
 	"context"
 	"fmt"
+
 	"github.com/kaspanet/kaspad/cmd/kaspawallet/daemon/pb"
 	"github.com/kaspanet/kaspad/cmd/kaspawallet/libkaspawallet"
 	"github.com/kaspanet/kaspad/util"
@@ -23,7 +24,7 @@ func (s *server) changeAddress() (util.Address, error) {
 	walletAddr := &walletAddress{
 		index:         s.keysFile.LastUsedInternalIndex(),
 		cosignerIndex: s.keysFile.CosignerIndex,
-		keyChain:      internalKeychain,
+		keyChain:      libkaspawallet.InternalKeychain,
 	}
 	path := s.walletAddressPath(walletAddr)
 	return libkaspawallet.Address(s.params, s.keysFile.ExtendedPublicKeys, s.keysFile.MinimumSignatures, path, s.keysFile.ECDSA)
@@ -42,7 +43,7 @@ func (s *server) ShowAddresses(_ context.Context, request *pb.ShowAddressesReque
 		walletAddr := &walletAddress{
 			index:         i,
 			cosignerIndex: s.keysFile.CosignerIndex,
-			keyChain:      externalKeychain,
+			keyChain:      libkaspawallet.ExternalKeychain,
 		}
 		path := s.walletAddressPath(walletAddr)
 		address, err := libkaspawallet.Address(s.params, s.keysFile.ExtendedPublicKeys, s.keysFile.MinimumSignatures, path, s.keysFile.ECDSA)
@@ -76,7 +77,7 @@ func (s *server) NewAddress(_ context.Context, request *pb.NewAddressRequest) (*
 	walletAddr := &walletAddress{
 		index:         s.keysFile.LastUsedExternalIndex(),
 		cosignerIndex: s.keysFile.CosignerIndex,
-		keyChain:      externalKeychain,
+		keyChain:      libkaspawallet.ExternalKeychain,
 	}
 	path := s.walletAddressPath(walletAddr)
 	address, err := libkaspawallet.Address(s.params, s.keysFile.ExtendedPublicKeys, s.keysFile.MinimumSignatures, path, s.keysFile.ECDSA)
diff --git a/cmd/kaspawallet/daemon/server/sync.go b/cmd/kaspawallet/daemon/server/sync.go
index 653f84314..03a4dd112 100644
--- a/cmd/kaspawallet/daemon/server/sync.go
+++ b/cmd/kaspawallet/daemon/server/sync.go
@@ -1,20 +1,16 @@
 package server
 
 import (
+	"time"
+
+	"github.com/kaspanet/kaspad/cmd/kaspawallet/libkaspawallet"
+
 	"github.com/kaspanet/kaspad/app/appmessage"
 	"github.com/kaspanet/kaspad/domain/consensus/model/externalapi"
 	"github.com/pkg/errors"
-	"time"
 )
 
-const (
-	// externalKeychain is the key chain that is used to create receive addresses
-	externalKeychain = 0
-	// internalKeychain is used to create change addresses
-	internalKeychain = 1
-)
-
-var keyChains = []uint8{externalKeychain, internalKeychain}
+var keyChains = []uint8{libkaspawallet.ExternalKeychain, libkaspawallet.InternalKeychain}
 
 type walletAddressSet map[string]*walletAddress
 
@@ -180,7 +176,7 @@ func (s *server) updateLastUsedIndexes(addressSet walletAddressSet,
 			continue
 		}
 
-		if walletAddress.keyChain == externalKeychain {
+		if walletAddress.keyChain == libkaspawallet.ExternalKeychain {
 			if walletAddress.index > lastUsedExternalIndex {
 				lastUsedExternalIndex = walletAddress.index
 			}
diff --git a/cmd/kaspawallet/keys/keys.go b/cmd/kaspawallet/keys/keys.go
index bdf3a6846..25ece5595 100644
--- a/cmd/kaspawallet/keys/keys.go
+++ b/cmd/kaspawallet/keys/keys.go
@@ -6,12 +6,13 @@ import (
 	"encoding/hex"
 	"encoding/json"
 	"fmt"
-	"github.com/kaspanet/kaspad/cmd/kaspawallet/utils"
 	"os"
 	"path/filepath"
 	"runtime"
 	"strings"
 
+	"github.com/kaspanet/kaspad/cmd/kaspawallet/utils"
+
 	"github.com/kaspanet/kaspad/domain/dagconfig"
 	"github.com/kaspanet/kaspad/util"
 	"github.com/pkg/errors"
@@ -89,6 +90,23 @@ func (d *File) toJSON() *keysFileJSON {
 	}
 }
 
+// NewFileFromMnemonic generates a new File from the given mnemonic string
+func NewFileFromMnemonic(params *dagconfig.Params, mnemonic string, password string) (*File, error) {
+	encryptedMnemonics, extendedPublicKeys, err :=
+		encryptedMnemonicExtendedPublicKeyPairs(params, []string{mnemonic}, password, false)
+	if err != nil {
+		return nil, err
+	}
+	return &File{
+		Version:            LastVersion,
+		NumThreads:         defaultNumThreads,
+		EncryptedMnemonics: encryptedMnemonics,
+		ExtendedPublicKeys: extendedPublicKeys,
+		MinimumSignatures:  1,
+		ECDSA:              false,
+	}, nil
+}
+
 func (d *File) fromJSON(fileJSON *keysFileJSON) error {
 	d.Version = fileJSON.Version
 	d.NumThreads = fileJSON.NumThreads
diff --git a/cmd/kaspawallet/libkaspawallet/keychains.go b/cmd/kaspawallet/libkaspawallet/keychains.go
new file mode 100644
index 000000000..3dc487e5d
--- /dev/null
+++ b/cmd/kaspawallet/libkaspawallet/keychains.go
@@ -0,0 +1,8 @@
+package libkaspawallet
+
+const (
+	// ExternalKeychain is the key chain that is used to create receive addresses
+	ExternalKeychain = 0
+	// InternalKeychain is used to create change addresses
+	InternalKeychain = 1
+)