diff --git a/wallet/Cargo.toml b/wallet/Cargo.toml
new file mode 100644
index 000000000..33cb11ab9
--- /dev/null
+++ b/wallet/Cargo.toml
@@ -0,0 +1,12 @@
+[package]
+name = "grin_wallet"
+version = "0.1.0"
+authors = ["Laurent Meunier <laurent.meunier95@gmail.com>"]
+
+[dependencies]
+
+secp256k1zkp = { path = "../secp256k1zkp" }
+rust-crypto = "^0.2"
+rand = "^0.3"
+byteorder = "1"
+rustc-serialize = "0.3.23"
diff --git a/wallet/src/constants.rs b/wallet/src/constants.rs
new file mode 100644
index 000000000..33364902c
--- /dev/null
+++ b/wallet/src/constants.rs
@@ -0,0 +1,13 @@
+// Copyright 2016 The Grin Developers
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//     http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
diff --git a/wallet/src/extendedkey.rs b/wallet/src/extendedkey.rs
new file mode 100644
index 000000000..7228ea2b2
--- /dev/null
+++ b/wallet/src/extendedkey.rs
@@ -0,0 +1,207 @@
+// Copyright 2016 The Grin Developers
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//     http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+use Error;
+use secp::Secp256k1;
+use secp::key::SecretKey;
+use crypto::mac::Mac;
+use crypto::hmac::Hmac;
+use crypto::sha2::Sha256;
+use crypto::sha2::Sha512;
+use crypto::ripemd160::Ripemd160;
+use crypto::digest::Digest;
+use Error::{InvalidSeedSize, InvalidSliceSize, InvalidExtendedKey};
+use byteorder::{ByteOrder, BigEndian};
+
+/// An extended private key.
+/// An ExtendedKey is a secret key which can be used to derive new 
+/// secret keys to blind the commitment of a transaction output. 
+/// To be usable, a secret key should have an amount assigned to it, 
+/// but when the key is derived, the amount is not known and must be
+/// given.
+
+#[derive(Debug, Clone)]
+pub struct ExtendedKey {
+    /// Depth of the extended key
+    pub depth: u8,
+    /// Child number of the key
+    pub n_child: u32,
+    /// Parent key's fingerprint
+    pub fingerprint: [u8; 4],
+    /// Code of the derivation chain
+    pub chaincode: [u8; 32],
+    /// Actual private key
+    pub key: SecretKey,
+}
+
+impl ExtendedKey {
+
+    /// Creates a new extended key from a serialized one
+    pub fn from_slice(secp: &Secp256k1, slice: &[u8]) -> Result<ExtendedKey, Error> {
+        //TODO change when ser. ext. size is fixed
+        if slice.len() != 73 {
+            return Err(InvalidSliceSize);
+        }
+        let depth: u8 = slice[0];
+        let mut fingerprint: [u8; 4] = [0; 4];
+        (&mut fingerprint).copy_from_slice(&slice[1..5]);
+        let n_child = BigEndian::read_u32(&slice[5..9]);
+        let mut chaincode: [u8; 32] = [0; 32];
+        (&mut chaincode).copy_from_slice(&slice[9..41]);
+        let secret_key = match SecretKey::from_slice(secp, &slice[41..73]) {
+            Ok(key) => key,
+            Err(_) => return Err(InvalidExtendedKey),
+        };
+        
+        Ok(ExtendedKey {
+            depth: depth,
+            fingerprint: fingerprint,
+            n_child: n_child,
+            chaincode: chaincode,
+            key: secret_key,
+        })
+    }
+
+    /// Creates a new extended master key from a seed
+    pub fn from_seed(secp: &Secp256k1, seed: &[u8]) -> Result<ExtendedKey, Error> {
+        let mut hmac = Hmac::new(Sha512::new(), b"Mimble seed");
+        match seed.len() {
+            16 | 32 | 64 => hmac.input(&seed),
+            _ => {
+                return Err(InvalidSeedSize)
+            },
+        }
+
+        let mut derived: [u8; 64] = [0; 64];
+        hmac.raw_result(&mut derived);
+
+        let mut chaincode: [u8; 32] = [0; 32];
+        (&mut chaincode).copy_from_slice(&derived[32..]);
+        // TODO Error handling
+        let secret_key = SecretKey::from_slice(&secp, &derived[0..32])
+            .expect("Error generating from seed");
+
+        Ok(ExtendedKey {
+            depth: 0,
+            fingerprint: [0; 4],
+            n_child: 0,
+            chaincode: chaincode,
+            key: secret_key,
+        })
+    }
+
+    /// Return the identifier of the key, which is the 
+    /// Hash160 of the private key
+    pub fn identifier(&self) -> [u8; 20] {
+        let mut sha = Sha256::new();
+        sha.input(&self.key[..]);
+
+        let mut shres = [0; 32];
+        sha.result(&mut shres);
+
+        let mut ripe = Ripemd160::new();
+        ripe.input(&shres[..]);
+
+        let mut identifier = [0; 20];
+        ripe.result(&mut identifier);
+        return identifier
+    }
+
+    /// Derive an extended key from an extended key
+    pub fn derive(&self, secp: &Secp256k1, n: u32) -> Result<ExtendedKey, Error> {
+        let mut hmac = Hmac::new(Sha512::new(), &self.chaincode[..]);
+        let mut n_bytes: [u8; 4] = [0; 4];
+        BigEndian::write_u32(&mut n_bytes, n);
+
+        hmac.input(&self.key[..]);
+        hmac.input(&n_bytes[..]);
+
+        let mut derived = [0; 64];
+        hmac.raw_result(&mut derived);
+
+        let mut secret_key = SecretKey::from_slice(&secp, &derived[0..32])
+            .expect("Error deriving key");
+        secret_key.add_assign(secp, &self.key)
+            .expect("Error deriving key");
+        // TODO check if key != 0 ?
+
+        let mut chain_code: [u8; 32] = [0; 32];
+        (&mut chain_code).clone_from_slice(&derived[32..]);
+
+        let mut fingerprint: [u8; 4] = [0; 4];
+        let parent_identifier = self.identifier();
+        (&mut fingerprint).clone_from_slice(&parent_identifier[0..4]);
+
+        Ok(ExtendedKey {
+            depth: self.depth + 1,
+            fingerprint: fingerprint,
+            n_child: n,
+            chaincode: chain_code,
+            key: secret_key 
+        })
+    }
+}
+
+#[cfg(test)]
+mod test {
+    extern crate rustc_serialize as serialize;
+
+    use secp::Secp256k1;
+    use secp::key::SecretKey;
+    use super::ExtendedKey;
+    use self::serialize::hex::{FromHex};
+
+    #[test]
+    fn extkey_from_seed() {
+        //TODO More test vectors
+        let s = Secp256k1::new();
+        let seed = "000102030405060708090a0b0c0d0e0f".from_hex().unwrap();
+        let extk = ExtendedKey::from_seed(&s, &seed.as_slice())
+            .unwrap();
+        let sec = "04a7d66a82221501e67f2665332180bd1192c5e58a2cd26613827deb8ba14e75".from_hex().unwrap();
+        let secret_key = SecretKey::from_slice(&s, sec.as_slice())
+            .unwrap();
+        let chaincode = "b7c6740dea1920ec629b3593678f6d8dc40fe6ec1ed824fcde37f476cd6c048c".from_hex().unwrap();
+        let fingerprint = "00000000".from_hex().unwrap();
+        let depth = 0;
+        let n_child = 0;
+        assert_eq!(extk.key, secret_key);
+        assert_eq!(extk.fingerprint, fingerprint.as_slice());
+        assert_eq!(extk.chaincode, chaincode.as_slice());
+        assert_eq!(extk.depth, depth);
+        assert_eq!(extk.n_child, n_child);
+    }
+
+    #[test]
+    fn extkey_derivation() {
+        //TODO More test verctors
+        let s = Secp256k1::new();
+        let seed = "000102030405060708090a0b0c0d0e0f".from_hex().unwrap();
+        let extk = ExtendedKey::from_seed(&s, &seed.as_slice())
+            .unwrap();
+        let derived = extk.derive(&s, 0).unwrap();
+        let sec = "908bf3264b8f5f5a5be57d3b0afa36eb5dbcc464ff4da2cf71183e8ec755184b".from_hex().unwrap();
+        let secret_key = SecretKey::from_slice(&s, sec.as_slice())
+            .unwrap();
+        let chaincode = "e90c4559501fb956fa8ddcd6d08499691678cfd6d69e41efb9ee8e87f327e30a".from_hex().unwrap();
+        let fingerprint = "8963be69".from_hex().unwrap();
+        let depth = 1;
+        let n_child = 0;
+        assert_eq!(derived.key, secret_key);
+        assert_eq!(derived.fingerprint, fingerprint.as_slice());
+        assert_eq!(derived.chaincode, chaincode.as_slice());
+        assert_eq!(derived.depth, depth);
+        assert_eq!(derived.n_child, n_child);
+    }
+}
diff --git a/wallet/src/lib.rs b/wallet/src/lib.rs
new file mode 100644
index 000000000..2464ea0eb
--- /dev/null
+++ b/wallet/src/lib.rs
@@ -0,0 +1,41 @@
+
+extern crate secp256k1zkp as secp;
+extern crate crypto;
+extern crate rand;
+extern crate byteorder;
+
+use std::{error, fmt};
+
+pub mod extendedkey;
+pub mod constants;
+
+/// An ExtKey error
+#[derive(Copy, PartialEq, Eq, Clone, Debug)]
+pub enum Error {
+    /// The size of the seed is invalid
+    InvalidSeedSize,
+    InvalidSliceSize,
+    InvalidExtendedKey,
+}
+
+// Passthrough Debug to Display, since errors should be user-visible
+impl fmt::Display for Error {
+    fn fmt(&self, f: &mut fmt::Formatter) -> Result<(), fmt::Error> {
+        f.write_str(error::Error::description(self))
+    }
+}
+
+impl error::Error for Error {
+    fn cause(&self) -> Option<&error::Error> {
+        None
+    }
+
+    fn description(&self) -> &str {
+        match *self {
+            Error::InvalidSeedSize => "wallet: seed isn't of size 128, 256 or 512",
+            //TODO change when ser. ext. size is fixed
+            Error::InvalidSliceSize => "wallet: serialized extended key must be of size 73",
+            Error::InvalidExtendedKey => "wallet: the given serialized extended key is invalid",
+        }
+    }
+}