diff --git a/keychain/btcwallet.go b/keychain/btcwallet.go
new file mode 100644
index 00000000..749f09ec
--- /dev/null
+++ b/keychain/btcwallet.go
@@ -0,0 +1,288 @@
+package keychain
+
+import (
+	"crypto/sha256"
+	"fmt"
+
+	"github.com/roasbeef/btcd/btcec"
+	"github.com/roasbeef/btcwallet/waddrmgr"
+	"github.com/roasbeef/btcwallet/wallet"
+	"github.com/roasbeef/btcwallet/walletdb"
+)
+
+var (
+	// lightningKeyScope is the key scope that will be used within the
+	// waddrmgr to create an HD chain for deriving all of our required
+	// keys.
+	lightningKeyScope = waddrmgr.KeyScope{
+		Purpose: BIP0043Purpose,
+		Coin:    0,
+	}
+
+	// lightningAddrSchema is the scope addr schema for all keys that we
+	// derive. We'll treat them all as p2wkh addresses, as atm we must
+	// specify a particular type.
+	lightningAddrSchema = waddrmgr.ScopeAddrSchema{
+		ExternalAddrType: waddrmgr.WitnessPubKey,
+		InternalAddrType: waddrmgr.WitnessPubKey,
+	}
+
+	// waddrmgrNamespaceKey is the namespace key that the waddrmgr state is
+	// stored within the top-level waleltdb buckets of btcwallet.
+	waddrmgrNamespaceKey = []byte("waddrmgr")
+)
+
+// BtcWalletKeyRing is an implementation of both the KeyRing and SecretKeyRing
+// interfaces backed by btcwallet's internal root waddrmgr. Internally, we'll
+// be using a ScopedKeyManager to do all of our derivations, using the key
+// scope and scope addr scehma defined above. Re-using the existing key scope
+// construction means that all key derivation will be protected under the root
+// seed of the wallet, making each derived key fully deterministic.
+type BtcWalletKeyRing struct {
+	// wallet is a pointer to the active instance of the btcwallet core.
+	// This is required as we'll need to manually open database
+	// transactions in order to derive addresses and lookup relevant keys
+	wallet *wallet.Wallet
+
+	// lightningScope is a pointer to the scope that we'll be using as a
+	// sub key manager to derive all the keys that we require.
+	lightningScope *waddrmgr.ScopedKeyManager
+}
+
+// NewBtcWalletKeyRing creates a new implementation of the
+// keychain.SecretKeyRing interface backed by btcwallet.
+//
+// NOTE: The passed waddrmgr.Manager MUST be unlocked in order for the keychain
+// to function.
+func NewBtcWalletKeyRing(w *wallet.Wallet) SecretKeyRing {
+	return &BtcWalletKeyRing{
+		wallet: w,
+	}
+}
+
+// keyScope attempts to return the key scope that we'll use to derive all of
+// our keys. If the scope has already been fetched from the database, then a
+// cached version will be returned. Otherwise, we'll fetch it from the database
+// and cache it for subsequent accesses.
+func (b *BtcWalletKeyRing) keyScope() (*waddrmgr.ScopedKeyManager, error) {
+	// If the scope has already been populated, then we'll return it
+	// directly.
+	if b.lightningScope != nil {
+		return b.lightningScope, nil
+	}
+
+	// Otherwise, we'll first do a check to ensure that the root manager
+	// isn't locked, as otherwise we won't be able to *use* the scope.
+	if b.wallet.Manager.Locked() {
+		return nil, fmt.Errorf("cannot create BtcWalletKeyRing with " +
+			"locked waddrmgr.Manager")
+	}
+
+	// If the manager is indeed unlocked, then we'll fetch the scope, cache
+	// it, and return to the caller.
+	lnScope, err := b.wallet.Manager.FetchScopedKeyManager(
+		lightningKeyScope,
+	)
+	if err != nil {
+		return nil, err
+	}
+
+	b.lightningScope = lnScope
+
+	return lnScope, nil
+}
+
+// createAccountIfNotExists will create the corresponding account for a key
+// family if it doesn't already exist in the database.
+func (b *BtcWalletKeyRing) createAccountIfNotExists(
+	addrmgrNs walletdb.ReadWriteBucket, keyFam KeyFamily,
+	scope *waddrmgr.ScopedKeyManager) error {
+
+	// If this is the multi-sig key family, then we can return early as
+	// this is the default account that's created.
+	if keyFam == KeyFamilyMultiSig {
+		return nil
+	}
+
+	// Otherwise, we'll check if the account already exists, if so, we can
+	// once again bail early.
+	_, err := scope.AccountName(addrmgrNs, uint32(keyFam))
+	if err == nil {
+		return nil
+	}
+
+	// If we reach this point, then the account hasn't yet been created, so
+	// we'll need to create it before we can proceed.
+	return scope.NewRawAccount(addrmgrNs, uint32(keyFam))
+}
+
+// DeriveNextKey attempts to derive the *next* key within the key family
+// (account in BIP43) specified. This method should return the next external
+// child within this branch.
+//
+// NOTE: This is part of the keychain.KeyRing interface.
+func (b *BtcWalletKeyRing) DeriveNextKey(keyFam KeyFamily) (KeyDescriptor, error) {
+	var pubKey *btcec.PublicKey
+
+	db := b.wallet.Database()
+	err := walletdb.Update(db, func(tx walletdb.ReadWriteTx) error {
+		addrmgrNs := tx.ReadWriteBucket(waddrmgrNamespaceKey)
+
+		scope, err := b.keyScope()
+		if err != nil {
+			return err
+		}
+
+		// If the account doesn't exist, then we may need to create it
+		// for the first time in order to derive the keys that we
+		// require.
+		err = b.createAccountIfNotExists(addrmgrNs, keyFam, scope)
+		if err != nil {
+			return err
+		}
+
+		addrs, err := scope.NextExternalAddresses(
+			addrmgrNs, uint32(keyFam), 1,
+		)
+		if err != nil {
+			return err
+		}
+
+		pubKey = addrs[0].(waddrmgr.ManagedPubKeyAddress).PubKey()
+
+		return nil
+	})
+	if err != nil {
+		return KeyDescriptor{}, err
+	}
+
+	return KeyDescriptor{
+		PubKey: pubKey,
+	}, nil
+}
+
+// DeriveKey attempts to derive an arbitrary key specified by the passed
+// KeyLocator. This may be used in several recovery scenarios, or when manually
+// rotating something like our current default node key.
+//
+// NOTE: This is part of the keychain.KeyRing interface.
+func (b *BtcWalletKeyRing) DeriveKey(keyLoc KeyLocator) (KeyDescriptor, error) {
+	var keyDesc KeyDescriptor
+
+	db := b.wallet.Database()
+	err := walletdb.Update(db, func(tx walletdb.ReadWriteTx) error {
+		addrmgrNs := tx.ReadWriteBucket(waddrmgrNamespaceKey)
+
+		scope, err := b.keyScope()
+		if err != nil {
+			return err
+		}
+
+		// If the account doesn't exist, then we may need to create it
+		// for the first time in order to derive the keys that we
+		// require.
+		err = b.createAccountIfNotExists(addrmgrNs, keyLoc.Family, scope)
+		if err != nil {
+			return err
+		}
+
+		path := waddrmgr.DerivationPath{
+			Account: uint32(keyLoc.Family),
+			Branch:  0,
+			Index:   uint32(keyLoc.Index),
+		}
+		addr, err := scope.DeriveFromKeyPath(addrmgrNs, path)
+		if err != nil {
+			return err
+		}
+
+		keyDesc.KeyLocator = keyLoc
+		keyDesc.PubKey = addr.(waddrmgr.ManagedPubKeyAddress).PubKey()
+
+		return nil
+	})
+	if err != nil {
+		return keyDesc, err
+	}
+
+	return keyDesc, nil
+}
+
+// DerivePrivKey attempts to derive the private key that corresponds to the
+// passed key descriptor.
+//
+// NOTE: This is part of the keychain.SecretKeyRing interface.
+func (b *BtcWalletKeyRing) DerivePrivKey(keyDesc KeyDescriptor) (*btcec.PrivateKey, error) {
+	var key *btcec.PrivateKey
+
+	db := b.wallet.Database()
+	err := walletdb.Update(db, func(tx walletdb.ReadWriteTx) error {
+		addrmgrNs := tx.ReadWriteBucket(waddrmgrNamespaceKey)
+
+		scope, err := b.keyScope()
+		if err != nil {
+			return err
+		}
+
+		// If the account doesn't exist, then we may need to create it
+		// for the first time in order to derive the keys that we
+		// require.
+		err = b.createAccountIfNotExists(
+			addrmgrNs, keyDesc.Family, scope,
+		)
+		if err != nil {
+			return err
+		}
+
+		// Now that we know the account exists, we can safely derive
+		// the full private key from the given path.
+		path := waddrmgr.DerivationPath{
+			Account: uint32(keyDesc.Family),
+			Branch:  0,
+			Index:   uint32(keyDesc.Index),
+		}
+		addr, err := scope.DeriveFromKeyPath(addrmgrNs, path)
+		if err != nil {
+			return err
+		}
+
+		key, err = addr.(waddrmgr.ManagedPubKeyAddress).PrivKey()
+		if err != nil {
+			return err
+		}
+
+		return nil
+	})
+	if err != nil {
+		return nil, err
+	}
+
+	return key, nil
+}
+
+// ScalarMult performs a scalar multiplication (ECDH-like operation) between
+// the target key descriptor and remote public key. The output returned will be
+// the sha256 of the resulting shared point serialized in compressed format. If
+// k is our private key, and P is the public key, we perform the following
+// operation:
+//
+//  sx := k*P s := sha256(sx.SerializeCompressed())
+//
+// NOTE: This is part of the keychain.SecretKeyRing interface.
+func (b *BtcWalletKeyRing) ScalarMult(keyDesc KeyDescriptor,
+	pub *btcec.PublicKey) ([]byte, error) {
+
+	privKey, err := b.DerivePrivKey(keyDesc)
+	if err != nil {
+		return nil, err
+	}
+
+	s := &btcec.PublicKey{}
+	x, y := btcec.S256().ScalarMult(pub.X, pub.Y, privKey.D.Bytes())
+	s.X = x
+	s.Y = y
+
+	h := sha256.Sum256(s.SerializeCompressed())
+
+	return h[:], nil
+}
diff --git a/keychain/derivation.go b/keychain/derivation.go
index b2ffd167..cc619892 100644
--- a/keychain/derivation.go
+++ b/keychain/derivation.go
@@ -6,7 +6,7 @@ const (
 	// KeyDerivationVersion is the version of the key derivation schema
 	// defined below. We use a version as this means that we'll be able to
 	// accept new seed in the future and be able to discern if the software
-	// is compatible with the version of the weed.
+	// is compatible with the version of the seed.
 	KeyDerivationVersion = 0
 
 	// BIP0043Purpose is the "purpose" value that we'll use for the first