diff --git a/lib/customer-deposit-wallet/customer-deposit-wallet.cabal b/lib/customer-deposit-wallet/customer-deposit-wallet.cabal
index dd76cdbac61..eeb1f2cd7b2 100644
--- a/lib/customer-deposit-wallet/customer-deposit-wallet.cabal
+++ b/lib/customer-deposit-wallet/customer-deposit-wallet.cabal
@@ -54,8 +54,8 @@ library
   build-depends:
     , async
     , base
-    , base58-bytestring
     , base16-bytestring
+    , base58-bytestring
     , bech32
     , bech32-th
     , bytestring
@@ -69,7 +69,7 @@ library
     , cardano-wallet
     , cardano-wallet-network-layer
     , cardano-wallet-primitive
-    , cardano-wallet-read           ==0.2024.8.27
+    , cardano-wallet-read
     , containers
     , contra-tracer
     , customer-deposit-wallet-pure
@@ -77,8 +77,8 @@ library
     , delta-types
     , digest
     , fingertree
-    , io-classes
     , int-cast
+    , io-classes
     , lens
     , MonadRandom
     , monoidal-containers
@@ -104,8 +104,8 @@ library
     Cardano.Wallet.Deposit.Pure.API.TxHistory
     Cardano.Wallet.Deposit.Pure.Balance
     Cardano.Wallet.Deposit.Pure.State.Creation
-    Cardano.Wallet.Deposit.Pure.State.Payment.Inspect
     Cardano.Wallet.Deposit.Pure.State.Payment
+    Cardano.Wallet.Deposit.Pure.State.Payment.Inspect
     Cardano.Wallet.Deposit.Pure.State.Rolling
     Cardano.Wallet.Deposit.Pure.State.Signing
     Cardano.Wallet.Deposit.Pure.State.Submissions
@@ -214,26 +214,33 @@ test-suite unit
     , aeson
     , aeson-pretty
     , base
+    , base58-bytestring
+    , base16-bytestring
     , bech32
     , bech32-th
-    , base58-bytestring
     , bytestring
+    , cardano-addresses
+    , address-derivation-discovery
     , cardano-crypto
     , cardano-crypto-class
     , cardano-ledger-api
     , cardano-ledger-core
     , cardano-ledger-core:testlib
+    , cardano-ledger-shelley
+    , cardano-slotting
     , cardano-wallet-read
     , cardano-wallet-test-utils
     , containers
     , contra-tracer
     , customer-deposit-wallet
+    , customer-deposit-wallet-pure
     , customer-deposit-wallet:http
     , customer-deposit-wallet:rest
-    , customer-deposit-wallet-pure
+    , data-default
     , directory
     , hspec
     , hspec-golden
+    , lens
     , openapi3
     , pretty-simple
     , QuickCheck
@@ -241,7 +248,6 @@ test-suite unit
     , temporary
     , text
     , time
-    , text
     , transformers
     , with-utf8
 
@@ -251,6 +257,7 @@ test-suite unit
     Cardano.Wallet.Deposit.HTTP.OpenAPISpec
     Cardano.Wallet.Deposit.Map.TimedSpec
     Cardano.Wallet.Deposit.Pure.API.AddressSpec
+    Cardano.Wallet.Deposit.Pure.API.TransactionSpec
     Cardano.Wallet.Deposit.PureSpec
     Cardano.Wallet.Deposit.RESTSpec
     Cardano.Wallet.Deposit.Write.KeysSpec
diff --git a/lib/customer-deposit-wallet/http/Cardano/Wallet/Deposit/HTTP/Server.hs b/lib/customer-deposit-wallet/http/Cardano/Wallet/Deposit/HTTP/Server.hs
index d789ef9fa94..fa936209323 100644
--- a/lib/customer-deposit-wallet/http/Cardano/Wallet/Deposit/HTTP/Server.hs
+++ b/lib/customer-deposit-wallet/http/Cardano/Wallet/Deposit/HTTP/Server.hs
@@ -23,7 +23,8 @@ import Cardano.Wallet.Deposit.IO
     ( WalletBootEnv
     )
 import Cardano.Wallet.Deposit.Pure.State.Creation
-    ( credentialsFromEncodedXPub
+    ( createMnemonicFromWords
+    , credentialsFromEncodedXPub
     , credentialsFromMnemonics
     )
 import Cardano.Wallet.Deposit.REST
@@ -90,17 +91,20 @@ createWalletViaMnemonic
     dir
     boot
     resource
-    (PostWalletViaMnemonic mnemonics' passphrase' users') =
-        onlyOnWalletIntance resource initWallet $> NoContent
-      where
-        initWallet :: WalletResourceM ()
-        initWallet =
-            REST.initWallet
-                tracer
-                boot
-                dir
-                (credentialsFromMnemonics mnemonics' passphrase')
-                (fromIntegral users')
+    (PostWalletViaMnemonic mnemonics' passphrase' users') = do
+        case createMnemonicFromWords mnemonics' of
+            Left e -> fail $ show e
+            Right someMnemonic -> do
+                let
+                    initWallet :: WalletResourceM ()
+                    initWallet =
+                        REST.initWallet
+                            tracer
+                            boot
+                            dir
+                            (credentialsFromMnemonics someMnemonic passphrase')
+                            (fromIntegral users')
+                onlyOnWalletIntance resource initWallet $> NoContent
 
 createWalletViaXPub
     :: Tracer IO String
diff --git a/lib/customer-deposit-wallet/rest/Cardano/Wallet/Deposit/REST.hs b/lib/customer-deposit-wallet/rest/Cardano/Wallet/Deposit/REST.hs
index fbdbd2b39b9..5bc16a39b30 100644
--- a/lib/customer-deposit-wallet/rest/Cardano/Wallet/Deposit/REST.hs
+++ b/lib/customer-deposit-wallet/rest/Cardano/Wallet/Deposit/REST.hs
@@ -50,9 +50,14 @@ module Cardano.Wallet.Deposit.REST
     , walletPublicIdentity
     , deleteWallet
     , deleteTheDepositWalletOnDisk
-    -- * Internals
-    , onWalletInstance
 
+      -- * Internals
+    , inspectTx
+    , onWalletInstance
+    , networkTag
+    , resolveCurrentEraTx
+    , canSign
+    , submitTx
     ) where
 
 import Prelude
@@ -81,9 +86,12 @@ import Cardano.Wallet.Deposit.IO.Resource
     , ErrResourceMissing (..)
     )
 import Cardano.Wallet.Deposit.Pure
-    ( Credentials
+    ( CanSign
+    , Credentials
+    , CurrentEraResolvedTx
     , Customer
     , ErrCreatePayment
+    , InspectTx
     , Passphrase
     , Word31
     , fromCredentialsAndGenesis
@@ -152,6 +160,7 @@ import System.FilePath
     )
 
 import qualified Cardano.Wallet.Deposit.IO as WalletIO
+import qualified Cardano.Wallet.Deposit.IO.Network.Type as Network
 import qualified Cardano.Wallet.Deposit.IO.Resource as Resource
 import qualified Cardano.Wallet.Deposit.Read as Read
 import qualified Cardano.Wallet.Deposit.Write as Write
@@ -287,7 +296,7 @@ instance Serialise XPrv where
     encode = encode . unXPrv
     decode = do
         b :: ByteString <- decode
-        case xprv  b of
+        case xprv b of
             Right x -> pure x
             Left e -> fail e
 
@@ -438,6 +447,9 @@ getTxHistoryByTime
     :: WalletResourceM ByTime
 getTxHistoryByTime = onWalletInstance WalletIO.getTxHistoryByTime
 
+networkTag :: WalletResourceM Read.NetworkTag
+networkTag = onWalletInstance WalletIO.networkTag
+
 {-----------------------------------------------------------------------------
     Operations
     Writing to blockchain
@@ -445,7 +457,7 @@ getTxHistoryByTime = onWalletInstance WalletIO.getTxHistoryByTime
 
 createPayment
     :: [(Address, Read.Value)]
-    -> WalletResourceM (Either ErrCreatePayment Write.Tx)
+    -> WalletResourceM (Either ErrCreatePayment CurrentEraResolvedTx)
 createPayment = onWalletInstance . WalletIO.createPayment
 
 getBIP32PathsForOwnedInputs
@@ -454,8 +466,22 @@ getBIP32PathsForOwnedInputs
 getBIP32PathsForOwnedInputs =
     onWalletInstance . WalletIO.getBIP32PathsForOwnedInputs
 
+canSign :: WalletResourceM CanSign
+canSign = onWalletInstance WalletIO.canSign
+
 signTx
     :: Write.Tx
     -> Passphrase
     -> WalletResourceM (Maybe Write.Tx)
 signTx tx = onWalletInstance . WalletIO.signTx tx
+
+inspectTx
+    :: CurrentEraResolvedTx
+    -> WalletResourceM InspectTx
+inspectTx = onWalletInstance . WalletIO.inspectTx
+
+resolveCurrentEraTx :: Write.Tx -> WalletResourceM CurrentEraResolvedTx
+resolveCurrentEraTx = onWalletInstance . WalletIO.resolveCurrentEraTx
+
+submitTx :: Write.Tx -> WalletResourceM (Either Network.ErrPostTx ())
+submitTx = onWalletInstance . WalletIO.submitTx
diff --git a/lib/customer-deposit-wallet/src/Cardano/Wallet/Deposit/IO.hs b/lib/customer-deposit-wallet/src/Cardano/Wallet/Deposit/IO.hs
index bd54f40f69c..4ae62d8b43b 100644
--- a/lib/customer-deposit-wallet/src/Cardano/Wallet/Deposit/IO.hs
+++ b/lib/customer-deposit-wallet/src/Cardano/Wallet/Deposit/IO.hs
@@ -36,6 +36,7 @@ module Cardano.Wallet.Deposit.IO
 
       -- *** Create transactions
     , createPayment
+    , inspectTx
 
       -- *** Sign transactions
     , getBIP32PathsForOwnedInputs
@@ -45,8 +46,12 @@ module Cardano.Wallet.Deposit.IO
     , submitTx
     , listTxsInSubmission
 
-     -- * Internals
-     , onWalletState
+      -- * Internals
+    , onWalletState
+    , networkTag
+    , readWalletState
+    , resolveCurrentEraTx
+    , canSign
     ) where
 
 import Prelude
@@ -59,6 +64,7 @@ import Cardano.Wallet.Deposit.IO.Network.Type
     )
 import Cardano.Wallet.Deposit.Pure
     ( Credentials
+    , CurrentEraResolvedTx
     , Customer
     , ValueTransfer
     , WalletPublicIdentity (..)
@@ -70,6 +76,9 @@ import Cardano.Wallet.Deposit.Pure.API.TxHistory
     , ByTime
     , LookupTimeFromSlot
     )
+import Cardano.Wallet.Deposit.Pure.State.Creation
+    ( CanSign
+    )
 import Cardano.Wallet.Deposit.Read
     ( Address
     , TxId
@@ -315,6 +324,10 @@ slotResolver w = do
         $ bootEnv
         $ env w
 
+networkTag :: WalletInstance -> IO Read.NetworkTag
+networkTag w = do
+    Wallet.networkTag <$> readWalletState w
+
 {-----------------------------------------------------------------------------
     Operations
     Constructing transactions
@@ -323,7 +336,7 @@ slotResolver w = do
 createPayment
     :: [(Address, Read.Value)]
     -> WalletInstance
-    -> IO (Either Wallet.ErrCreatePayment Write.Tx)
+    -> IO (Either Wallet.ErrCreatePayment CurrentEraResolvedTx)
 createPayment a w = do
     timeTranslation <- Network.getTimeTranslation network
     pparams <-
@@ -332,11 +345,28 @@ createPayment a w = do
   where
     network = networkEnv $ bootEnv $ env w
 
+inspectTx
+    :: CurrentEraResolvedTx
+    -> WalletInstance
+    -> IO Wallet.InspectTx
+inspectTx tx w = flip Wallet.inspectTx tx <$> readWalletState w
+
+resolveCurrentEraTx
+    :: Write.Tx
+    -> WalletInstance
+    -> IO CurrentEraResolvedTx
+resolveCurrentEraTx tx w =
+    Wallet.resolveCurrentEraTx tx <$> readWalletState w
+
 {-----------------------------------------------------------------------------
     Operations
     Signing transactions
 ------------------------------------------------------------------------------}
 
+canSign :: WalletInstance -> IO CanSign
+canSign w = do
+    Wallet.canSign <$> readWalletState w
+
 getBIP32PathsForOwnedInputs
     :: Write.Tx -> WalletInstance -> IO [BIP32Path]
 getBIP32PathsForOwnedInputs a w =
diff --git a/lib/customer-deposit-wallet/src/Cardano/Wallet/Deposit/Pure.hs b/lib/customer-deposit-wallet/src/Cardano/Wallet/Deposit/Pure.hs
index cd1bc1e2f03..6de8e6a07e3 100644
--- a/lib/customer-deposit-wallet/src/Cardano/Wallet/Deposit/Pure.hs
+++ b/lib/customer-deposit-wallet/src/Cardano/Wallet/Deposit/Pure.hs
@@ -43,17 +43,25 @@ module Cardano.Wallet.Deposit.Pure
     , getEraSlotOfBlock
     , getCustomerDeposits
     , getAllDeposits
+    , networkTag
 
       -- ** Writing to the blockchain
     , ErrCreatePayment (..)
     , createPayment
+    , resolveCurrentEraTx
+    , CurrentEraResolvedTx
     , BIP32Path (..)
     , DerivationType (..)
+    , ResolvedTx (..)
+    , canSign
+    , CanSign (..)
     , getBIP32PathsForOwnedInputs
     , Passphrase
     , signTx
     , addTxSubmission
     , listTxsInSubmission
+    , inspectTx
+    , InspectTx (..)
     ) where
 
 import Cardano.Wallet.Address.BIP32
@@ -61,13 +69,21 @@ import Cardano.Wallet.Address.BIP32
     , DerivationType (..)
     )
 import Cardano.Wallet.Deposit.Pure.State.Creation
-    ( Credentials (..)
+    ( CanSign (..)
+    , Credentials (..)
     , WalletPublicIdentity (..)
+    , canSign
     , fromCredentialsAndGenesis
     )
 import Cardano.Wallet.Deposit.Pure.State.Payment
-    ( ErrCreatePayment (..)
+    ( CurrentEraResolvedTx
+    , ErrCreatePayment (..)
     , createPayment
+    , resolveCurrentEraTx
+    )
+import Cardano.Wallet.Deposit.Pure.State.Payment.Inspect
+    ( InspectTx (..)
+    , inspectTx
     )
 import Cardano.Wallet.Deposit.Pure.State.Rolling
     ( rollBackward
@@ -104,9 +120,13 @@ import Cardano.Wallet.Deposit.Pure.State.Type
     , knownCustomer
     , knownCustomerAddress
     , listCustomers
+    , networkTag
     , trackedCustomers
     , walletXPub
     )
+import Cardano.Wallet.Deposit.Pure.UTxO.Tx
+    ( ResolvedTx (..)
+    )
 import Cardano.Wallet.Deposit.Pure.UTxO.ValueTransfer
     ( ValueTransfer (..)
     )
diff --git a/lib/customer-deposit-wallet/src/Cardano/Wallet/Deposit/Pure/State/Creation.hs b/lib/customer-deposit-wallet/src/Cardano/Wallet/Deposit/Pure/State/Creation.hs
index 94a31cc07c8..5bafc4ce876 100644
--- a/lib/customer-deposit-wallet/src/Cardano/Wallet/Deposit/Pure/State/Creation.hs
+++ b/lib/customer-deposit-wallet/src/Cardano/Wallet/Deposit/Pure/State/Creation.hs
@@ -1,4 +1,6 @@
+{-# LANGUAGE DataKinds #-}
 {-# LANGUAGE DeriveGeneric #-}
+{-# LANGUAGE NamedFieldPuns #-}
 {-# LANGUAGE TypeSynonymInstances #-}
 {-# OPTIONS_GHC -Wno-orphans #-}
 
@@ -13,6 +15,9 @@ module Cardano.Wallet.Deposit.Pure.State.Creation
     , rootXPrvFromCredentials
     , ErrDecodingXPub (..)
     , encodedXPubFromCredentials
+    , canSign
+    , CanSign (..)
+    , createMnemonicFromWords
     ) where
 
 import Prelude hiding
@@ -23,8 +28,13 @@ import Cardano.Address.Derivation
     ( xpubFromBytes
     , xpubToBytes
     )
-import Cardano.Crypto.Wallet
-    ( generate
+import Cardano.Address.Style.Shelley
+    ( genMasterKeyFromMnemonicShelley
+    )
+import Cardano.Mnemonic
+    ( MkSomeMnemonic (..)
+    , MkSomeMnemonicError
+    , SomeMnemonic
     )
 import Cardano.Wallet.Address.BIP32_Ed25519
     ( XPrv
@@ -46,12 +56,16 @@ import GHC.Generics
     ( Generic
     )
 
+import Cardano.Crypto.Wallet
+    ( xPrvChangePass
+    )
 import qualified Cardano.Wallet.Deposit.Pure.Address as Address
 import qualified Cardano.Wallet.Deposit.Pure.Submissions as Sbm
 import qualified Cardano.Wallet.Deposit.Pure.UTxO.UTxOHistory as UTxOHistory
 import qualified Cardano.Wallet.Deposit.Read as Read
 import qualified Data.ByteString.Base16 as B16
 import qualified Data.ByteString.Char8 as B8
+import qualified Data.Text as T
 import qualified Data.Text.Encoding as T
 
 data WalletPublicIdentity = WalletPublicIdentity
@@ -83,12 +97,16 @@ accountXPubFromCredentials (XPrvCredentials _ xpub) = xpub
 -- | Derive account 'XPrv' from the root 'XPrv'.
 deriveAccountXPrv :: XPrv -> XPrv
 deriveAccountXPrv xprv =
-    (deriveXPrvHard
-    (deriveXPrvHard
-    (deriveXPrvHard xprv
-    1857) -- Address derivation standard
-    1815) -- ADA
-    0)    -- Account number
+    ( deriveXPrvHard
+        ( deriveXPrvHard
+            ( deriveXPrvHard
+                xprv
+                1857 -- Address derivation standard
+            )
+            1815 -- ADA
+        )
+        0 -- Account number
+    )
 
 -- | Get root 'XPrv' from credentials if available.
 rootXPrvFromCredentials :: Credentials -> Maybe XPrv
@@ -114,9 +132,15 @@ fromCredentialsAndGenesis credentials knownCustomerCount genesisData =
     network = Read.getNetworkId genesisData
     initialUTxO = mempty
 
+-- | Simplified version of 'mkSomeMnemonic' that takes a space-separated list of
+-- words. Entropy and checksum are checked as well.
+createMnemonicFromWords
+    :: Text -> Either (MkSomeMnemonicError '[15, 24]) SomeMnemonic
+createMnemonicFromWords = mkSomeMnemonic . T.words
+
 -- | Create 'Credentials' from a mnemonic sentence and a passphrase.
 credentialsFromMnemonics
-    :: Text
+    :: SomeMnemonic
     -- ^ Mnemonics
     -> Text
     -- ^ Passphrase
@@ -124,17 +148,27 @@ credentialsFromMnemonics
 credentialsFromMnemonics mnemonics passphrase =
     let
         unencryptedXPrv =
-            generate
-                (T.encodeUtf8 mnemonics)
+            genMasterKeyFromMnemonicShelley
+                mnemonics
                 (T.encodeUtf8 mempty)
         encryptedXPrv =
-            generate
-                (T.encodeUtf8 mnemonics)
+            xPrvChangePass
+                B8.empty
                 (T.encodeUtf8 passphrase)
+                unencryptedXPrv
     in
         XPrvCredentials
             encryptedXPrv
-            (toXPub $ deriveAccountXPrv unencryptedXPrv)
+            $ toXPub
+            $ deriveAccountXPrv unencryptedXPrv
+
+data CanSign = CanSign | CannotSign
+    deriving (Eq, Show)
+
+canSign :: WalletState -> CanSign
+canSign WalletState{rootXSignKey} = case rootXSignKey of
+    Nothing -> CannotSign
+    Just _ -> CanSign
 
 -- | Create 'Credentials' from an extended public key failures to decode
 data ErrDecodingXPub = ErrFromXPubBase16 | ErrFromXPubDecodeKey
diff --git a/lib/customer-deposit-wallet/src/Cardano/Wallet/Deposit/Pure/State/Payment.hs b/lib/customer-deposit-wallet/src/Cardano/Wallet/Deposit/Pure/State/Payment.hs
index 5d0c4d1cecf..df2013f37b3 100644
--- a/lib/customer-deposit-wallet/src/Cardano/Wallet/Deposit/Pure/State/Payment.hs
+++ b/lib/customer-deposit-wallet/src/Cardano/Wallet/Deposit/Pure/State/Payment.hs
@@ -1,11 +1,14 @@
 {-# LANGUAGE DuplicateRecordFields #-}
 {-# LANGUAGE GADTs #-}
+{-# LANGUAGE LambdaCase #-}
 {-# LANGUAGE ScopedTypeVariables #-}
 
 module Cardano.Wallet.Deposit.Pure.State.Payment
     ( ErrCreatePayment (..)
     , createPayment
+    , createPaymentTxBody
     , CurrentEraResolvedTx
+    , resolveCurrentEraTx
     ) where
 
 import Prelude hiding
@@ -20,12 +23,14 @@ import Cardano.Wallet.Deposit.Pure.State.Type
     )
 import Cardano.Wallet.Deposit.Pure.UTxO.Tx
     ( ResolvedTx (..)
+    , resolveInputs
     )
 import Cardano.Wallet.Deposit.Read
     ( Address
     )
 import Cardano.Wallet.Deposit.Write
-    ( TxBody (..)
+    ( Tx
+    , TxBody (..)
     )
 import Control.Monad.Trans.Except
     ( runExceptT
@@ -36,6 +41,9 @@ import Data.Bifunctor
 import Data.Digest.CRC32
     ( crc32
     )
+import Data.Text.Class.Extended
+    ( ToText (..)
+    )
 
 import qualified Cardano.Wallet.Deposit.Pure.Address as Address
 import qualified Cardano.Wallet.Deposit.Read as Read
@@ -43,36 +51,79 @@ import qualified Cardano.Wallet.Deposit.Write as Write
 import qualified Cardano.Wallet.Read.Hash as Hash
 import qualified Control.Monad.Random.Strict as Random
 import qualified Data.Map.Strict as Map
+import qualified Data.Text as T
 
 data ErrCreatePayment
     = ErrCreatePaymentNotRecentEra (Read.EraValue Read.Era)
     | ErrCreatePaymentBalanceTx (Write.ErrBalanceTx Write.Conway)
     deriving (Eq, Show)
 
+instance ToText ErrCreatePayment where
+    toText = \case
+        ErrCreatePaymentNotRecentEra era ->
+            "Cannot create a payment in the era: " <> T.pack (show era)
+        ErrCreatePaymentBalanceTx err ->
+            "Cannot create a payment: " <> T.pack (show err)
+
 type CurrentEraResolvedTx = ResolvedTx Read.Conway
 
--- | Create a payment to a list of destinations.
+resolveCurrentEraTx :: Tx -> WalletState -> CurrentEraResolvedTx
+resolveCurrentEraTx tx w = resolveInputs (availableUTxO w) tx
+
 createPayment
     :: Read.EraValue Read.PParams
     -> Write.TimeTranslation
     -> [(Address, Write.Value)]
     -> WalletState
-    -> Either ErrCreatePayment Write.Tx
-createPayment (Read.EraValue (Read.PParams pparams :: Read.PParams era)) a b w =
-    case Read.theEra :: Read.Era era of
-        Read.Conway ->
-            first ErrCreatePaymentBalanceTx
-                $ createPaymentConway pparams a b w
-        era' -> Left $ ErrCreatePaymentNotRecentEra (Read.EraValue era')
+    -> Either ErrCreatePayment CurrentEraResolvedTx
+createPayment pp tt destinations w =
+    createPaymentTxBody pp tt (mkPaymentTxBody w destinations) w
+
+-- | Create a payment to a list of destinations.
+createPaymentTxBody
+    :: Read.EraValue Read.PParams
+    -> Write.TimeTranslation
+    -> TxBody
+    -> WalletState
+    -> Either ErrCreatePayment CurrentEraResolvedTx
+createPaymentTxBody
+    (Read.EraValue (Read.PParams pparams :: Read.PParams era))
+    timeTranslation
+    txBody
+    state =
+        case Read.theEra :: Read.Era era of
+            Read.Conway ->
+                first ErrCreatePaymentBalanceTx
+                    $ flip resolveCurrentEraTx state
+                        <$> createPaymentConway
+                            pparams
+                            timeTranslation
+                            txBody
+                            state
+            era' -> Left $ ErrCreatePaymentNotRecentEra (Read.EraValue era')
+
+mkPaymentTxBody
+    :: WalletState -> [(Address, Write.Value)] -> Write.TxBody
+mkPaymentTxBody w destinations =
+    Write.TxBody
+        { spendInputs = mempty
+        , collInputs = mempty
+        , txouts =
+            Map.fromList
+                $ zip [(toEnum 0) ..]
+                $ map (uncurry Write.mkTxOut) destinations
+        , collRet = Nothing
+        , expirySlot = Just . computeExpirySlot $ walletTip w
+        }
 
 -- | In the Conway era: Create a payment to a list of destinations.
 createPaymentConway
     :: Write.PParams Write.Conway
     -> Write.TimeTranslation
-    -> [(Address, Write.Value)]
+    -> TxBody
     -> WalletState
     -> Either (Write.ErrBalanceTx Write.Conway) Write.Tx
-createPaymentConway pparams timeTranslation destinations w =
+createPaymentConway pparams timeTranslation body w =
     fmap (Read.Tx . fst)
         . flip Random.evalRand (pilferRandomGen w)
         . runExceptT
@@ -80,21 +131,8 @@ createPaymentConway pparams timeTranslation destinations w =
             (availableUTxO w)
             (addresses w)
         . mkPartialTx
-        $ paymentTxBody
+        $ body
   where
-    paymentTxBody :: Write.TxBody
-    paymentTxBody =
-        Write.TxBody
-            { spendInputs = mempty
-            , collInputs = mempty
-            , txouts =
-                Map.fromList
-                    $ zip [(toEnum 0) ..]
-                    $ map (uncurry Write.mkTxOut) destinations
-            , collRet = Nothing
-            , expirySlot = Just . computeExpirySlot $ walletTip w
-            }
-
     mkPartialTx :: Write.TxBody -> Write.PartialTx Write.Conway
     mkPartialTx txbody =
         Write.PartialTx
diff --git a/lib/customer-deposit-wallet/src/Cardano/Wallet/Deposit/Pure/State/Payment/Inspect.hs b/lib/customer-deposit-wallet/src/Cardano/Wallet/Deposit/Pure/State/Payment/Inspect.hs
index d1eb72edf9c..9cb26bbdc46 100644
--- a/lib/customer-deposit-wallet/src/Cardano/Wallet/Deposit/Pure/State/Payment/Inspect.hs
+++ b/lib/customer-deposit-wallet/src/Cardano/Wallet/Deposit/Pure/State/Payment/Inspect.hs
@@ -7,8 +7,11 @@ module Cardano.Wallet.Deposit.Pure.State.Payment.Inspect
     ( inspectTx
     , CurrentEraResolvedTx
     , InspectTx (..)
+    , transactionBalance
     ) where
 
+import Prelude
+
 import Cardano.Read.Ledger.Tx.Fee
     ( Fee (..)
     , getEraFee
@@ -39,7 +42,7 @@ import Cardano.Wallet.Deposit.Read
     , TxId
     )
 import Cardano.Wallet.Read
-    ( Coin
+    ( Coin (..)
     , Conway
     , TxIx
     , Value (..)
@@ -49,26 +52,53 @@ import Cardano.Wallet.Read
     , mkEraTxOut
     , pattern TxIn
     )
+import Control.Lens
+    ( Field2 (_2)
+    , Field3 (_3)
+    , to
+    , (^.)
+    )
 import Data.Foldable
     ( Foldable (..)
     , fold
     )
-import Prelude
+import Data.Monoid
+    ( Sum (..)
+    )
 
 import qualified Data.Map.Strict as Map
 import qualified Data.Set as Set
 
+-- | Inspect the inputs and outputs of a transaction.
 data InspectTx = InspectTx
     { ourInputs :: [(TxId, TxIx, Coin)]
+    -- ^ Our inputs.
     , otherInputs :: [(TxId, TxIx)]
+    -- ^ Other inputs, there shouldn't be any.
     , change :: [(Address, Coin)]
+    -- ^ Change outputs.
     , ourOutputs :: [(Address, Customer, Coin)]
+    -- ^ Our outputs. The customer is the owner of the address. There could be
+    -- reasons the user wants to move funds among customer addresses.
     , otherOutputs :: [(Address, Coin)]
+    -- ^ Other outputs. This is regular money leaving the wallet.
     , fee :: Coin
     }
+    deriving (Eq, Show)
+
+-- | Calculate the output balance of a transaction, which is the sum of the
+-- values of our inputs minus the sum of the values of the change outputs and
+-- minus the outputs to our customers.
+transactionBalance :: InspectTx -> Integer
+transactionBalance InspectTx{..} = getSum $
+    (ourInputs ^. traverse . _3 . mkSum)
+        - (change ^. traverse . _2 . mkSum)
+        - (ourOutputs ^. traverse . _3 . mkSum)
+    where
+        mkSum = to (Sum . unCoin)
 
-inspectTx
-    :: WalletState -> CurrentEraResolvedTx -> InspectTx
+-- | Inspect a transaction where inputs have been resolved to our UTxO.
+inspectTx :: WalletState -> CurrentEraResolvedTx -> InspectTx
 inspectTx ws (ResolvedTx tx ourUTxO) =
     let
         (ourInputs, otherInputs) = fold $ do
diff --git a/lib/customer-deposit-wallet/src/Cardano/Wallet/Deposit/Pure/State/Signing.hs b/lib/customer-deposit-wallet/src/Cardano/Wallet/Deposit/Pure/State/Signing.hs
index 18789eb82af..4d01c5ab989 100644
--- a/lib/customer-deposit-wallet/src/Cardano/Wallet/Deposit/Pure/State/Signing.hs
+++ b/lib/customer-deposit-wallet/src/Cardano/Wallet/Deposit/Pure/State/Signing.hs
@@ -61,7 +61,7 @@ signTx :: Write.Tx -> Passphrase -> WalletState -> Maybe Write.Tx
 signTx tx passphrase w = signTx' <$> rootXSignKey w
   where
     signTx' encryptedXPrv =
-        foldr Write.addAddressWitness tx keys
+        foldr Write.addSignature tx keys
       where
         unencryptedXPrv =
             xPrvChangePass
diff --git a/lib/customer-deposit-wallet/src/Cardano/Wallet/Deposit/Pure/State/Type.hs b/lib/customer-deposit-wallet/src/Cardano/Wallet/Deposit/Pure/State/Type.hs
index faf4ea179bb..dc3a094c5be 100644
--- a/lib/customer-deposit-wallet/src/Cardano/Wallet/Deposit/Pure/State/Type.hs
+++ b/lib/customer-deposit-wallet/src/Cardano/Wallet/Deposit/Pure/State/Type.hs
@@ -18,6 +18,7 @@ module Cardano.Wallet.Deposit.Pure.State.Type
     , walletXPub
     , getUTxO
     , getWalletTip
+    , networkTag
     ) where
 
 import Prelude hiding
@@ -31,6 +32,9 @@ import Cardano.Crypto.Wallet
 import Cardano.Wallet.Deposit.Pure.API.TxHistory
     ( TxHistory (..)
     )
+import Cardano.Wallet.Deposit.Read
+    ( NetworkTag
+    )
 import Cardano.Wallet.Deposit.Write
     ( Address
     )
@@ -118,3 +122,6 @@ getUTxO = UTxOHistory.getUTxO . utxoHistory
 
 getWalletTip :: WalletState -> Read.ChainPoint
 getWalletTip = walletTip
+
+networkTag :: WalletState -> NetworkTag
+networkTag = Address.getNetworkTag . addresses
diff --git a/lib/customer-deposit-wallet/src/Cardano/Wallet/Deposit/Testing/DSL.hs b/lib/customer-deposit-wallet/src/Cardano/Wallet/Deposit/Testing/DSL.hs
index dee2578c84d..750dcbbfb71 100644
--- a/lib/customer-deposit-wallet/src/Cardano/Wallet/Deposit/Testing/DSL.hs
+++ b/lib/customer-deposit-wallet/src/Cardano/Wallet/Deposit/Testing/DSL.hs
@@ -23,6 +23,11 @@ module Cardano.Wallet.Deposit.Testing.DSL
     , assert
     , interpret
     , InterpreterState (..)
+    , spend
+    , sign
+    , utxo
+    , wallet
+    , balance
     )
 where
 
@@ -30,6 +35,7 @@ import Prelude
 
 import Cardano.Wallet.Deposit.Pure
     ( Customer
+    , ResolvedTx (..)
     , WalletState
     , getTxHistoryByTime
     )
@@ -38,10 +44,18 @@ import Cardano.Wallet.Deposit.Pure.API.TxHistory
     , ByTime
     , LookupTimeFromSlot
     )
+import Cardano.Wallet.Deposit.Pure.State.Creation
+    ( createMnemonicFromWords
+    , credentialsFromMnemonics
+    )
+import Cardano.Wallet.Deposit.Pure.State.Payment
+    ( createPaymentTxBody
+    )
 import Cardano.Wallet.Deposit.Read
     ( Address
     , ChainPoint (..)
     , EraValue (..)
+    , UTxO
     , getChainPoint
     , mockNextBlock
     , slotFromChainPoint
@@ -65,7 +79,9 @@ import Cardano.Wallet.Deposit.Write
     , mkAda
     , mkTx
     , mkTxOut
+    , txOutsL
     )
+import qualified Cardano.Wallet.Deposit.Write as Write
 import Cardano.Wallet.Read
     ( Coin (..)
     , Slot
@@ -76,16 +92,17 @@ import Cardano.Wallet.Read
     )
 import Control.Lens
     ( At (..)
+    , Field1 (_1)
+    , Field2 (_2)
     , Ixed (..)
     , Lens'
-    , _1
-    , _2
     , lens
     , use
     , uses
     , zoom
     , (%=)
     , (.=)
+    , (^?)
     )
 import Control.Monad
     ( void
@@ -115,18 +132,28 @@ import Data.List
 import Data.Map
     ( Map
     )
+import Data.Maybe
+    ( fromJust
+    )
+import Data.Text
+    ( Text
+    )
 import Data.Time
     ( UTCTime
     )
 
 import qualified Cardano.Wallet.Deposit.Pure as Wallet
+import qualified Cardano.Wallet.Deposit.Time as Time
+import qualified Cardano.Wallet.Read as Read
 import qualified Data.List.NonEmpty as NE
 import qualified Data.Map as Map
 import qualified Data.Set as Set
 
 data Scenario p a where
+    ResetWallet :: Int -> Text -> Text -> Scenario p ()
     ExistsTx :: Scenario p TxI
     Deposit :: TxI -> Customer -> Int -> Scenario p UnspentI
+    Spend :: TxI -> Address -> Int -> Scenario p ()
     Withdrawal :: TxI -> UnspentI -> Scenario p ()
     CreateBlock :: [TxI] -> Scenario p (BlockI)
     RollForward :: [BlockI] -> Scenario p ()
@@ -135,10 +162,17 @@ data Scenario p a where
     HistoryByCustomer :: Scenario p ByCustomer
     NewHistoryByTime :: ByTimeM ByTime -> Scenario p ByTime
     AvailableBalance :: Scenario p Int
+    Sign :: Tx -> Text -> Scenario p Tx
+    Balance :: TxI -> Scenario p Tx
+    UTxO :: UnspentI -> Scenario p UTxO
     Assert :: p -> Scenario p ()
 
 type ScenarioP p m = ProgramT (Scenario p) m
 
+wallet :: Int -> Text -> Text -> ScenarioP p m ()
+wallet users seed passphrase =
+    singleton (ResetWallet users seed passphrase)
+
 existsTx :: ScenarioP p m TxI
 existsTx = singleton ExistsTx
 
@@ -148,6 +182,9 @@ deposit tx customer value = singleton (Deposit tx customer value)
 deposit_ :: Monad m => TxI -> Customer -> Int -> ScenarioP p m ()
 deposit_ tx customer value = void $ deposit tx customer value
 
+spend :: TxI -> Address -> Int -> ScenarioP p m ()
+spend tx addr value = singleton (Spend tx addr value)
+
 withdrawal :: TxI -> UnspentI -> ScenarioP p m ()
 withdrawal tx unspent = singleton (Withdrawal tx unspent)
 
@@ -172,6 +209,15 @@ newHistoryByTime = singleton . NewHistoryByTime
 availableBalance :: ScenarioP p m Int
 availableBalance = singleton AvailableBalance
 
+sign :: Tx -> Text -> ScenarioP p m Write.Tx
+sign tx pass = singleton (Sign tx pass)
+
+balance :: TxI -> ScenarioP p m Tx
+balance tx = singleton (Balance tx)
+
+utxo :: UnspentI -> ScenarioP p m UTxO
+utxo = singleton . UTxO
+
 assert :: p -> ScenarioP p m ()
 assert = singleton . Assert
 
@@ -260,32 +306,48 @@ newBlockId = zoom iBlockContentsL $ do
     put $ Map.insert blockId [] blocks
     return blockId
 
+freshInterpreterState :: InterpreterState
+freshInterpreterState = InterpreterState mempty mempty mempty mempty
+
+unsafeCustomerAddress
+    :: Wallet.WalletState -> Customer -> Write.Address
+unsafeCustomerAddress w = fromJust . flip Wallet.customerAddress w
+
 interpret
     :: (MonadIO m, MonadFail m)
     => WalletState
     -> (p -> m ())
-    -> (Customer -> Address)
     -> (Slot -> WithOrigin UTCTime)
     -> ScenarioP
         p
         (StateT (WalletState, InterpreterState) m)
         ()
     -> m ()
-interpret w runP customerAddresses slotTimes p = flip evalStateT w $ do
+interpret w runP slotTimes p = flip evalStateT w $ do
     walletState <- get
     (walletState', _) <-
         lift
             $ execStateT
                 (go p)
-                (walletState, InterpreterState mempty mempty mempty mempty)
+                (walletState, freshInterpreterState)
     put walletState'
   where
     go = viewT >=> eval
+    eval (ResetWallet users seed passphrase :>>= k) = do
+        Right mnemonics <- pure $ createMnemonicFromWords seed
+        let new =
+                Wallet.fromCredentialsAndGenesis
+                    (credentialsFromMnemonics mnemonics passphrase)
+                    (fromIntegral users)
+                    Read.mockGenesisDataMainnet
+        id .= (new, freshInterpreterState)
+        go $ k ()
     eval (Return x) = return x
     eval (ExistsTx :>>= k) = do
         txId <- zoom _2 newTxId
         go $ k txId
     eval (Deposit tx customer value :>>= k) = do
+        customerAddresses <- uses _1 unsafeCustomerAddress
         let v = mkAda $ fromIntegral value
             txOut = mkTxOut (customerAddresses customer) v
         Just txBody <- use (_2 . iTxsL . at tx)
@@ -296,6 +358,12 @@ interpret w runP customerAddresses slotTimes p = flip evalStateT w $ do
         Just txId <- uses (_2 . iTxsL . at tx') $ fmap (getTxId . mkTx)
         _2 . iTxsL . ix tx %= \txBody -> addTxIn (TxIn txId tix) txBody
         go $ k ()
+    eval (Spend tx address value :>>= k) = do
+        Just txBody <- use (_2 . iTxsL . at tx)
+        let (txBody', _tix) =
+                addTxOut (mkTxOut address (mkAda $ fromIntegral value)) txBody
+        _2 . iTxsL . ix tx .= txBody'
+        go $ k ()
     eval (CreateBlock txs :>>= k) = do
         blockId <- zoom _2 newBlockId
         send <-
@@ -317,6 +385,7 @@ interpret w runP customerAddresses slotTimes p = flip evalStateT w $ do
         v <- uses _1 Wallet.getTxHistoryByCustomer
         go $ k v
     eval (NewHistoryByTime m :>>= k) = do
+        customerAddresses <- uses _1 unsafeCustomerAddress
         txIds' <- uses (_2 . iTxsL) $ (Map.!) . fmap (getTxId . mkTx)
         blockSlots <-
             uses (_2 . iBlockPointsL) $ (Map.!) . fmap slotFromChainPoint
@@ -327,6 +396,27 @@ interpret w runP customerAddresses slotTimes p = flip evalStateT w $ do
     eval (AvailableBalance :>>= k) = do
         ValueC (CoinC v) _ <- uses _1 Wallet.availableBalance
         go $ k $ fromIntegral v
+    eval (Sign tx pass :>>= k) = do
+        Just stx <- uses _1 $ Wallet.signTx tx pass
+        go $ k stx
+    eval (Balance tx :>>= k) = do
+        Just txBody <- use (_2 . iTxsL . at tx)
+        ws <- use _1
+        let etx =
+                createPaymentTxBody
+                    (Read.EraValue Read.mockPParamsConway)
+                    (Time.toTimeTranslationPure Time.mockTimeInterpreter)
+                    txBody
+                    ws
+        ResolvedTx btx _ <- case etx of
+            Left e -> fail $ "createPaymentTxBody failed: " <> show e
+            Right tx' -> return tx'
+        go $ k btx
+    eval (UTxO (UnspentI (tx, tix)) :>>= k) = do
+        Just txBody <- use (_2 . iTxsL . at tx)
+        let txId = getTxId $ mkTx txBody
+        Just txOut <- pure $ txBody ^? txOutsL . ix tix
+        go $ k $ Map.singleton (TxIn txId tix) txOut
     eval (Assert assertion :>>= k) = do
         lift $ runP assertion
         go $ k ()
diff --git a/lib/customer-deposit-wallet/src/Cardano/Wallet/Deposit/Write.hs b/lib/customer-deposit-wallet/src/Cardano/Wallet/Deposit/Write.hs
index 417fe060a15..acea171ce3b 100644
--- a/lib/customer-deposit-wallet/src/Cardano/Wallet/Deposit/Write.hs
+++ b/lib/customer-deposit-wallet/src/Cardano/Wallet/Deposit/Write.hs
@@ -34,7 +34,7 @@ module Cardano.Wallet.Deposit.Write
     , Write.balanceTx
 
       -- * Signing
-    , addAddressWitness
+    , addSignature
 
       -- ** Time interpreter
     , Write.TimeTranslation
@@ -42,10 +42,13 @@ module Cardano.Wallet.Deposit.Write
       -- * Helper functions
     , mkAda
     , mkTxOut
+    , txOutsL
     , toConwayTx
     , addTxIn
     , addTxOut
     , emptyTxBody
+    , UTxO.resolvedTx
+    , UTxO.resolvedInputs
     ) where
 
 import Prelude
@@ -99,6 +102,7 @@ import Data.Set
 import qualified Cardano.Ledger.Api as L
 import qualified Cardano.Ledger.Api.Tx.In as L
 import qualified Cardano.Ledger.Slot as L
+import qualified Cardano.Wallet.Deposit.Pure.UTxO.Tx as UTxO
 import qualified Cardano.Wallet.Read as Read
 import qualified Cardano.Wallet.Read.Hash as Hash
 import qualified Cardano.Write.Eras as Write
@@ -117,9 +121,8 @@ type Block = Read.Block Read.Conway
     Signing
 ------------------------------------------------------------------------------}
 -- | Add a signature to the transaction using the private key
--- corresponding to a payment address.
-addAddressWitness :: XPrv -> Tx -> Tx
-addAddressWitness xprv tx@(Read.Tx ledgerTx) =
+addSignature :: XPrv -> Tx -> Tx
+addSignature xprv tx@(Read.Tx ledgerTx) =
     Read.Tx
         (ledgerTx & (L.witsTxL . L.addrTxWitsL) %~ Set.insert witnessVKey)
   where
diff --git a/lib/customer-deposit-wallet/test/scenario/Test/Scenario/Wallet/Deposit/Exchanges.lhs.md b/lib/customer-deposit-wallet/test/scenario/Test/Scenario/Wallet/Deposit/Exchanges.lhs.md
index d33a839404b..080684b7079 100644
--- a/lib/customer-deposit-wallet/test/scenario/Test/Scenario/Wallet/Deposit/Exchanges.lhs.md
+++ b/lib/customer-deposit-wallet/test/scenario/Test/Scenario/Wallet/Deposit/Exchanges.lhs.md
@@ -35,6 +35,7 @@ import Cardano.Wallet.Deposit.Pure
     ( Customer
     , ValueTransfer (..)
     , Credentials (..)
+    , ResolvedTx (..)
     )
 import Cardano.Wallet.Deposit.Read
     ( Address
@@ -206,7 +207,7 @@ scenarioCreatePayment xprv env destination w = do
     assert $ value1 == (coin <> coin)
 
     -- createPayment
-    Right txUnsigned <- Wallet.createPayment [(destination, coin)] w
+    Right (ResolvedTx txUnsigned _) <- Wallet.createPayment [(destination, coin)] w
     paths <- Wallet.getBIP32PathsForOwnedInputs txUnsigned w
     let tx = signTx xprv paths txUnsigned
     submitTx env tx
diff --git a/lib/customer-deposit-wallet/test/unit/Cardano/Wallet/Deposit/Pure/API/TransactionSpec.hs b/lib/customer-deposit-wallet/test/unit/Cardano/Wallet/Deposit/Pure/API/TransactionSpec.hs
new file mode 100644
index 00000000000..ecd6572b698
--- /dev/null
+++ b/lib/customer-deposit-wallet/test/unit/Cardano/Wallet/Deposit/Pure/API/TransactionSpec.hs
@@ -0,0 +1,241 @@
+{-# LANGUAGE DataKinds #-}
+{-# LANGUAGE NumericUnderscores #-}
+{-# LANGUAGE OverloadedStrings #-}
+{-# OPTIONS_GHC -Wno-incomplete-uni-patterns #-}
+
+module Cardano.Wallet.Deposit.Pure.API.TransactionSpec
+    ( spec
+    )
+where
+
+import Prelude
+
+import Cardano.Ledger.Api
+    ( ppMaxTxSizeL
+    , ppMaxValSizeL
+    )
+import Cardano.Ledger.BaseTypes
+    ( EpochSize (..)
+    )
+import qualified Cardano.Ledger.BaseTypes as Ledger
+import qualified Cardano.Ledger.Core as Ledger
+import qualified Cardano.Ledger.Shelley.API.Mempool as Ledger
+import qualified Cardano.Ledger.Shelley.LedgerState as Ledger
+import qualified Cardano.Ledger.Shelley.Rules as Ledger
+import qualified Cardano.Slotting.EpochInfo as Slotting
+import Cardano.Slotting.Time
+    ( SlotLength
+    , SystemStart (..)
+    , mkSlotLength
+    )
+import Cardano.Wallet.Deposit.Pure.Address
+    ( createAddress
+    )
+import qualified Cardano.Wallet.Deposit.Pure.Address as Address
+import Cardano.Wallet.Deposit.Pure.API.Address
+    ( encodeAddress
+    )
+import Cardano.Wallet.Deposit.Pure.State.Creation
+    ( accountXPubFromCredentials
+    , createMnemonicFromWords
+    , credentialsFromMnemonics
+    )
+import Cardano.Wallet.Deposit.PureSpec
+    ( testOnWallet
+    )
+import Cardano.Wallet.Deposit.Read
+    ( Address
+    , Conway
+    , NetworkTag (..)
+    , UTxO
+    , mkEnterpriseAddress
+    )
+import Cardano.Wallet.Deposit.Testing.DSL
+    ( assert
+    , balance
+    , block
+    , deposit
+    , existsTx
+    , rollForward
+    , sign
+    , spend
+    , utxo
+    , wallet
+    )
+import Cardano.Wallet.Deposit.Write
+    ( Tx
+    )
+import qualified Cardano.Wallet.Deposit.Write as Write
+import Cardano.Wallet.Read
+    ( NetworkId (..)
+    )
+import qualified Cardano.Wallet.Read as Read
+import Control.Lens
+    ( (&)
+    , (.~)
+    )
+import qualified Data.ByteString.Short as SBS
+import Data.Default
+    ( Default (..)
+    )
+import Data.Maybe
+    ( fromMaybe
+    )
+import Data.Text
+    ( Text
+    )
+import qualified Data.Text.Lazy as TL
+import Data.Time.Clock.POSIX
+    ( posixSecondsToUTCTime
+    )
+import Test.Cardano.Ledger.Core.Arbitrary
+    ()
+import Test.Hspec
+    ( Spec
+    , describe
+    , it
+    , shouldBe
+    )
+import Text.Pretty.Simple
+    ( pShow
+    )
+
+address :: Address
+address = mockAddress
+
+mockAddress :: Address
+mockAddress =
+    mkEnterpriseAddress
+        MainnetTag
+        (SBS.toShort "12345678901234567890123456789012")
+
+defaultPParams :: Ledger.PParams Conway
+defaultPParams =
+    def
+        & ppMaxTxSizeL .~ 16_384
+        & ppMaxValSizeL .~ 1_000_000_000
+
+-- | Create a new ledger env from given protocol parameters.
+newLedgerEnv :: Ledger.PParams Conway -> Ledger.LedgerEnv Conway
+newLedgerEnv protocolParams =
+    Ledger.LedgerEnv
+        { Ledger.ledgerSlotNo = 0
+        , -- NOTE: This can probably stay at 0 forever. This is used internally by the
+          -- node's mempool to keep track of transaction seen from peers. Transactions
+          -- in Hydra do not go through the node's mempool and follow a different
+          -- consensus path so this will remain unused.
+          Ledger.ledgerIx = minBound
+        , -- NOTE: This keeps track of the ledger's treasury and reserve which are
+          -- both unused in Hydra. There might be room for interesting features in the
+          -- future with these two but for now, we'll consider them empty.
+          Ledger.ledgerAccount = Ledger.AccountState mempty mempty
+        , Ledger.ledgerPp = protocolParams
+        , Ledger.ledgerMempool = False
+        }
+
+defaultLedgerEnv :: Ledger.LedgerEnv Conway
+defaultLedgerEnv = newLedgerEnv defaultPParams
+
+defaultGlobals :: Ledger.Globals
+defaultGlobals =
+    Ledger.Globals
+        { Ledger.epochInfo = Slotting.fixedEpochInfo epochSize slotLength
+        , Ledger.slotsPerKESPeriod = 20
+        , Ledger.stabilityWindow = 33
+        , Ledger.randomnessStabilisationWindow = 33
+        , Ledger.securityParameter = 10
+        , Ledger.maxKESEvo = 10
+        , Ledger.quorum = 5
+        , Ledger.maxLovelaceSupply = 45 * 1000 * 1000 * 1000 * 1000 * 1000
+        , Ledger.activeSlotCoeff =
+            Ledger.mkActiveSlotCoeff . unsafeBoundRational $ 0.9
+        , Ledger.networkId = Ledger.Mainnet
+        , Ledger.systemStart = SystemStart $ posixSecondsToUTCTime 0
+        }
+  where
+    unsafeBoundRational r =
+        fromMaybe (error $ "Could not convert from Rational: " <> show r)
+            $ Ledger.boundRational r
+
+epochSize :: EpochSize
+epochSize = EpochSize 100
+
+slotLength :: SlotLength
+slotLength = mkSlotLength 1
+
+applyTx
+    :: UTxO
+    -> Write.Tx
+    -> Either
+        (Ledger.ApplyTxError Conway)
+        ()
+applyTx utxos (Read.Tx tx) =
+    case Ledger.applyTx defaultGlobals defaultLedgerEnv memPoolState tx of
+        Left err -> Left err
+        Right _ -> Right ()
+  where
+    memPoolState =
+        Ledger.LedgerState
+            { Ledger.lsUTxOState =
+                def{Ledger.utxosUtxo = Write.toConwayUTxO utxos}
+            , Ledger.lsCertState = def
+            }
+newtype Ledger = Ledger
+    { validate :: Tx -> Either (Ledger.ApplyTxError Conway) ()
+    }
+
+ledgerFrom :: UTxO -> Ledger
+ledgerFrom = Ledger . applyTx
+
+accepts :: Ledger -> Tx -> IO ()
+accepts l t = case validate l t of
+    Left err ->
+        error
+            $ TL.unpack
+            $ "Transaction was not accepted by the ledger: \n"
+                <> pShow defaultPParams
+                <> "\n"
+                <> pShow t
+                <> "\n"
+                <> pShow err
+    Right _ -> pure ()
+
+mnemonics :: Text
+mnemonics = "vital minimum victory start lunch find city peanut shiver soft hedgehog artwork mushroom loud found"
+
+spec :: Spec
+spec = do
+    describe "balanced transaction" $ do
+        it "has correct witness for one tx-in"
+            $ testOnWallet
+            $ do
+                wallet 17 mnemonics "passphrase"
+                tx1 <- existsTx
+                u1 <- deposit tx1 1 100
+                b1 <- block [tx1]
+                rollForward [b1]
+                spending <- existsTx
+                spend spending address 10
+                balanced <- balance spending
+                utxos <- utxo u1
+                signedTx <- sign balanced "passphrase"
+                assert $ ledgerFrom utxos `accepts` signedTx
+
+    -- cat root1.prv
+    --  | cardano-address key child 1857H/1815H/0H/0/0 \
+    --  | cardano-address key public --with-chain-code \
+    --  | cardano-address address payment --network-tag mainnet
+    describe "generated address match golden cases" $ do
+        it "with empty passphrase in mainnet" $ do
+            let
+                Right seed = createMnemonicFromWords mnemonics
+                address0 = "addr1v8th5554xvd2us9hwh72p3yt9rg7uw9v7tk49t3yw3wrcgc3drxft"
+                creds = credentialsFromMnemonics seed mempty
+                xpub = accountXPubFromCredentials creds
+                addr =
+                    encodeAddress
+                        $ fst
+                        $ createAddress 0
+                        $ Address.fromXPubAndCount Mainnet xpub 1
+
+            addr `shouldBe` address0
diff --git a/lib/customer-deposit-wallet/test/unit/Cardano/Wallet/Deposit/PureSpec.hs b/lib/customer-deposit-wallet/test/unit/Cardano/Wallet/Deposit/PureSpec.hs
index a2436a0fffe..efb3844c038 100644
--- a/lib/customer-deposit-wallet/test/unit/Cardano/Wallet/Deposit/PureSpec.hs
+++ b/lib/customer-deposit-wallet/test/unit/Cardano/Wallet/Deposit/PureSpec.hs
@@ -9,19 +9,23 @@
 -- Property tests for the deposit wallet.
 module Cardano.Wallet.Deposit.PureSpec
     ( spec
+    , testOnWallet
     ) where
 
 import Prelude
 
+import Cardano.Mnemonic
+    ( SomeMnemonic
+    )
 import Cardano.Wallet.Deposit.Pure
     ( Credentials
-    , Customer
     )
 import Cardano.Wallet.Deposit.Pure.API.TxHistory
     ( LookupTimeFromSlot
     )
 import Cardano.Wallet.Deposit.Pure.State.Creation
-    ( credentialsFromMnemonics
+    ( createMnemonicFromWords
+    , credentialsFromMnemonics
     )
 import Cardano.Wallet.Deposit.Testing.DSL
     ( InterpreterState (..)
@@ -87,10 +91,6 @@ timeFromSlot = unsafeUTCTimeOfSlot
 unsafeTimeForSlot :: Read.Slot -> Read.WithOrigin UTCTime
 unsafeTimeForSlot = fromJust . timeFromSlot
 
-unsafeCustomerAddress
-    :: Wallet.WalletState -> Customer -> Write.Address
-unsafeCustomerAddress w = fromJust . flip Wallet.customerAddress w
-
 testOnWallet
     :: ScenarioP
         (IO ())
@@ -101,7 +101,6 @@ testOnWallet =
     interpret
         emptyWalletWith17Addresses
         id
-        (unsafeCustomerAddress emptyWalletWith17Addresses)
         unsafeTimeForSlot
 
 spec :: Spec
@@ -300,9 +299,16 @@ emptyWalletWith17Addresses :: Wallet.WalletState
 emptyWalletWith17Addresses =
     Wallet.fromCredentialsAndGenesis testCredentials 17 testGenesis
 
+seed :: SomeMnemonic
+seed = case createMnemonicFromWords
+    "vital minimum victory start lunch find city peanut shiver soft hedgehog artwork mushroom loud found"
+    of
+    Right seed' -> seed'
+    Left e -> error $ show e
+
 testCredentials :: Credentials
 testCredentials =
-    credentialsFromMnemonics "random seed for a testing xpub lala" mempty
+    credentialsFromMnemonics seed mempty
 
 {-----------------------------------------------------------------------------
     Test blockchain
diff --git a/lib/customer-deposit-wallet/test/unit/Cardano/Wallet/Deposit/RESTSpec.hs b/lib/customer-deposit-wallet/test/unit/Cardano/Wallet/Deposit/RESTSpec.hs
index dbc52505856..c8f7ee64273 100644
--- a/lib/customer-deposit-wallet/test/unit/Cardano/Wallet/Deposit/RESTSpec.hs
+++ b/lib/customer-deposit-wallet/test/unit/Cardano/Wallet/Deposit/RESTSpec.hs
@@ -1,3 +1,5 @@
+{-# OPTIONS_GHC -Wno-incomplete-uni-patterns #-}
+
 module Cardano.Wallet.Deposit.RESTSpec
     ( spec
     )
@@ -10,6 +12,9 @@ import Cardano.Crypto.Wallet
     , verify
     , xPrvChangePass
     )
+import Cardano.Mnemonic
+    ( SomeMnemonic
+    )
 import Cardano.Wallet.Deposit.IO
     ( WalletBootEnv (WalletBootEnv)
     )
@@ -20,6 +25,7 @@ import Cardano.Wallet.Deposit.IO.Resource
 import Cardano.Wallet.Deposit.Pure.State.Creation
     ( Credentials
     , accountXPubFromCredentials
+    , createMnemonicFromWords
     , credentialsFromMnemonics
     , deriveAccountXPrv
     , rootXPrvFromCredentials
@@ -46,6 +52,10 @@ import Control.Concurrent
 import Control.Monad.IO.Class
     ( MonadIO (..)
     )
+import Control.Monad.Trans.Cont
+    ( cont
+    , evalCont
+    )
 import Control.Tracer
     ( nullTracer
     )
@@ -67,18 +77,12 @@ import Test.Hspec
     , it
     , shouldBe
     )
-
-import Control.Monad.Trans.Cont
-    ( cont
-    , evalCont
-    )
 import Test.QuickCheck
     ( Gen
     , arbitrary
+    , elements
     , forAll
     , listOf
-    , suchThat
-    , vectorOf
     , (===)
     )
 
@@ -90,11 +94,13 @@ import qualified Data.Text.Encoding as T
 fakeBootEnv :: WalletBootEnv IO
 fakeBootEnv = WalletBootEnv nullTracer Read.mockGenesisDataMainnet undefined
 
-mnemonics :: Text
-mnemonics = "random seed for a testing xpub lala"
+seed :: SomeMnemonic
+Right seed =
+    createMnemonicFromWords
+        "vital minimum victory start lunch find city peanut shiver soft hedgehog artwork mushroom loud found"
 
 credentials :: Credentials
-credentials = credentialsFromMnemonics mnemonics mempty
+credentials = credentialsFromMnemonics seed mempty
 
 letItInitialize :: WalletResourceM ()
 letItInitialize = liftIO $ threadDelay 100000
@@ -139,16 +145,21 @@ byteStringGen = B8.pack <$> listOf arbitrary
 textGen :: Gen Text
 textGen = T.pack <$> listOf arbitrary
 
-textNGen :: Int -> Gen Text
-textNGen n = do
-    n' <- arbitrary `suchThat` (>= n)
-    T.pack <$> vectorOf n' arbitrary
+words15 :: [Text]
+words15 =
+    [ "soap retire song hat major steak stuff daughter half scorpion please brisk decade hill song"
+    , "sure cannon broom caution artist legend boring reveal scene rubber weapon chest page clog fine"
+    , "fruit garden saddle upper huge educate fabric ocean bamboo verb iron apple have deposit trap"
+    ]
 
 credentialsGen :: Gen (Credentials, Text)
 credentialsGen = do
-    mnemonics' <- textNGen 32
-    passphrase' <- textGen
-    pure (credentialsFromMnemonics mnemonics' passphrase', passphrase')
+    mnemonics' <- elements words15
+    case createMnemonicFromWords mnemonics' of
+        Left e -> error $ "Invalid mnemonics: " <> show e
+        Right seed' -> do
+            passphrase' <- textGen
+            pure (credentialsFromMnemonics seed' passphrase', passphrase')
 
 spec :: Spec
 spec = do
@@ -175,9 +186,9 @@ spec = do
                     xPrvChangePass (T.encodeUtf8 passphrase') B8.empty
                 xprv =
                     deriveAccountXPrv
-                    $ decryptXPrv
-                    $ fromJust
-                    $ rootXPrvFromCredentials credentials'
+                        $ decryptXPrv
+                        $ fromJust
+                        $ rootXPrvFromCredentials credentials'
                 sig = sign B8.empty xprv message
             pure
                 $ verify (accountXPubFromCredentials credentials') message sig
diff --git a/lib/customer-deposit-wallet/test/unit/Cardano/Wallet/Deposit/Write/KeysSpec.hs b/lib/customer-deposit-wallet/test/unit/Cardano/Wallet/Deposit/Write/KeysSpec.hs
index 5b822c9af71..872cbe6c9ed 100644
--- a/lib/customer-deposit-wallet/test/unit/Cardano/Wallet/Deposit/Write/KeysSpec.hs
+++ b/lib/customer-deposit-wallet/test/unit/Cardano/Wallet/Deposit/Write/KeysSpec.hs
@@ -1,4 +1,5 @@
 {-# LANGUAGE FlexibleInstances #-}
+{-# LANGUAGE PackageImports #-}
 {-# LANGUAGE ScopedTypeVariables #-}
 {-# OPTIONS_GHC -Wno-incomplete-uni-patterns #-}
 {-# OPTIONS_GHC -Wno-orphans #-}
@@ -23,7 +24,7 @@ import Cardano.Wallet.Address.BIP32_Ed25519
     , sign
     , toXPub
     )
-import Cardano.Wallet.Address.Encoding
+import "customer-deposit-wallet-pure" Cardano.Wallet.Address.Encoding
     ( EnterpriseAddr (..)
     , NetworkTag (..)
     , compactAddrFromEnterpriseAddr
@@ -101,10 +102,7 @@ instance Arbitrary NetworkTag where
     arbitrary = elements [MainnetTag, TestnetTag]
 
 instance Arbitrary XPrv where
-    arbitrary =
-        generate
-            <$> (BS.pack <$> vectorOf 100 arbitrary)
-            <*> pure BS.empty
+    arbitrary = generate . BS.pack <$> vectorOf 100 arbitrary <*> pure BS.empty
 
 instance Arbitrary XPub where
     arbitrary = toXPub <$> arbitrary
diff --git a/lib/ui/src/Cardano/Wallet/UI/Deposit/Handlers/Wallet.hs b/lib/ui/src/Cardano/Wallet/UI/Deposit/Handlers/Wallet.hs
index 7f0688ac590..069db286ca8 100644
--- a/lib/ui/src/Cardano/Wallet/UI/Deposit/Handlers/Wallet.hs
+++ b/lib/ui/src/Cardano/Wallet/UI/Deposit/Handlers/Wallet.hs
@@ -10,7 +10,8 @@ import Cardano.Wallet.Deposit.Pure
     , Customer
     )
 import Cardano.Wallet.Deposit.Pure.State.Creation
-    ( credentialsFromEncodedXPub
+    ( createMnemonicFromWords
+    , credentialsFromEncodedXPub
     , credentialsFromMnemonics
     )
 import Cardano.Wallet.Deposit.REST
@@ -72,10 +73,13 @@ postMnemonicWallet
     alert
     render
     (PostWalletViaMnemonic mnemonic passphrase customers) = do
-        let credentials = credentialsFromMnemonics mnemonic passphrase
-        initWalletWithXPub l alert render
-            $ initWallet credentials
-            $ fromIntegral customers
+        case createMnemonicFromWords mnemonic of
+            Left e -> pure $ alert $ BL.pack $ show e
+            Right mnemonic' -> do
+                let credentials = credentialsFromMnemonics mnemonic' passphrase
+                initWalletWithXPub l alert render
+                    $ initWallet credentials
+                    $ fromIntegral customers
 
 postXPubWallet
     :: SessionLayer WalletResource