diff --git a/zk-token-sdk/src/encryption/aes.rs b/zk-token-sdk/src/encryption/aes.rs
index ed2b679a3..e6dc704a9 100644
--- a/zk-token-sdk/src/encryption/aes.rs
+++ b/zk-token-sdk/src/encryption/aes.rs
@@ -1,64 +1,86 @@
-#[cfg(not(target_arch = "bpf"))]
-use rand::{rngs::OsRng, Rng};
-
 use {
-    aes::{
-        cipher::{BlockDecrypt, BlockEncrypt, NewBlockCipher},
-        Aes128, Block,
-    },
-    arrayref::array_ref,
+    ed25519_dalek::SecretKey as SigningKey,
+    solana_sdk::pubkey::Pubkey,
+    std::convert::TryInto,
     zeroize::Zeroize,
 };
+#[cfg(not(target_arch = "bpf"))]
+use {
+    aes_gcm::{aead::Aead, Aes128Gcm, NewAead},
+    rand::{CryptoRng, rngs::OsRng, Rng, RngCore},
+    sha3::{Digest, Sha3_256},
+};
 
-pub struct AES;
+struct AES;
 impl AES {
     #[cfg(not(target_arch = "bpf"))]
     #[allow(clippy::new_ret_no_self)]
-    pub fn new() -> AESKey {
+    fn keygen<T: RngCore + CryptoRng>(rng: &mut T) -> AesKey {
         let random_bytes = OsRng.gen::<[u8; 16]>();
-        AESKey(random_bytes)
+        AesKey(random_bytes)
     }
 
     #[cfg(not(target_arch = "bpf"))]
-    pub fn encrypt(sk: &AESKey, amount: u64) -> AESCiphertext {
-        let amount_bytes = amount.to_le_bytes();
+    fn encrypt(sk: &AesKey, amount: u64) -> AesCiphertext {
+        let plaintext = amount.to_le_bytes();
+        let nonce = OsRng.gen::<[u8; 12]>();
 
-        let mut aes_block: Block = [0_u8; 16].into();
-        aes_block[..8].copy_from_slice(&amount_bytes);
+        // TODO: it seems like encryption cannot fail, but will need to double check
+        let ciphertext = Aes128Gcm::new(&sk.0.into())
+            .encrypt(&nonce.into(), plaintext.as_ref()).unwrap();
 
-        Aes128::new(&sk.0.into()).encrypt_block(&mut aes_block);
-        AESCiphertext(aes_block.into())
+        AesCiphertext {
+            nonce,
+            ciphertext: ciphertext.try_into().unwrap(),
+        }
     }
 
     #[cfg(not(target_arch = "bpf"))]
-    pub fn decrypt(sk: &AESKey, ct: &AESCiphertext) -> u64 {
-        let mut aes_block: Block = ct.0.into();
-        Aes128::new(&sk.0.into()).decrypt_block(&mut aes_block);
+    fn decrypt(sk: &AesKey, ct: &AesCiphertext) -> Option<u64> {
+        let plaintext = Aes128Gcm::new(&sk.0.into())
+            .decrypt(&ct.nonce.into(), ct.ciphertext.as_ref());
 
-        let amount_bytes = array_ref![aes_block[..8], 0, 8];
-        u64::from_le_bytes(*amount_bytes)
+        if let Ok(plaintext) = plaintext {
+            let amount_bytes: [u8; 8] = plaintext.try_into().unwrap();
+            Some(u64::from_le_bytes(amount_bytes))
+        } else {
+            None
+        }
     }
 }
 
 #[derive(Debug, Zeroize)]
-pub struct AESKey([u8; 16]);
-impl AESKey {
-    pub fn encrypt(&self, amount: u64) -> AESCiphertext {
+pub struct AesKey([u8; 16]);
+impl AesKey {
+    pub fn new(signing_key: &SigningKey, address: &Pubkey) -> Self {
+        let mut hashable = [0_u8; 64];
+        hashable[..32].copy_from_slice(&signing_key.to_bytes());
+        hashable[32..].copy_from_slice(&address.to_bytes());
+
+        let mut hasher = Sha3_256::new();
+        hasher.update(hashable);
+
+        let result: [u8; 16] = hasher.finalize()[..16].try_into().unwrap();
+        AesKey(result)
+    }
+
+    pub fn random<T: RngCore + CryptoRng>(rng: &mut T) -> Self {
+        AES::keygen(&mut rng)
+    }
+
+    pub fn encrypt(&self, amount: u64) -> AesCiphertext {
         AES::encrypt(self, amount)
     }
 }
 
 #[derive(Debug)]
-pub struct AESCiphertext(pub [u8; 16]);
-impl AESCiphertext {
-    pub fn decrypt(&self, sk: &AESKey) -> u64 {
-        AES::decrypt(sk, self)
-    }
+pub struct AesCiphertext {
+    pub nonce: [u8; 12],
+    pub ciphertext: [u8; 24],
 }
-
-impl Default for AESCiphertext {
-    fn default() -> Self {
-        AESCiphertext([0_u8; 16])
+impl AesCiphertext {
+    pub fn decrypt(&self, key: &AesKey) -> Option<u64> {
+        AES::decrypt(key, self)
     }
 }
 
@@ -68,11 +90,11 @@ mod tests {
 
     #[test]
     fn test_aes_encrypt_decrypt_correctness() {
-        let sk = AES::new();
+        let key = AesKey::random(&mut OsRng);
         let amount = 55;
 
-        let ct = sk.encrypt(amount);
-        let decrypted_amount = ct.decrypt(&sk);
+        let ct = key.encrypt(amount);
+        let decrypted_amount = ct.decrypt(&key).unwrap();
 
         assert_eq!(amount, decrypted_amount);
     }