diff --git a/Cargo.lock b/Cargo.lock
index 147c33f3..a339f0cd 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -1594,6 +1594,7 @@ dependencies = [
  "secp256k1-zkp",
  "serde",
  "serde_json",
+ "sha2",
  "sqlx",
  "uuid 1.4.1",
 ]
@@ -2422,9 +2423,11 @@ version = "0.1.0"
 dependencies = [
  "anyhow",
  "electrum-client",
+ "hex",
  "mercuryrustlib",
  "serde",
  "serde_json",
+ "sha2",
  "tokio",
  "uuid 1.4.1",
 ]
diff --git a/clients/tests/rust/Cargo.toml b/clients/tests/rust/Cargo.toml
index 99528b8f..227acc87 100644
--- a/clients/tests/rust/Cargo.toml
+++ b/clients/tests/rust/Cargo.toml
@@ -13,3 +13,5 @@ serde = { version = "1.0.163", features = ["derive"] }
 serde_json = "1.0.96"
 electrum-client = "0.18.0"
 uuid = { version = "1.3.1", features = ["v4", "serde"] }
+sha2 = "0.10.8"
+hex = "0.4.3"
diff --git a/clients/tests/rust/src/bitcoin_core.rs b/clients/tests/rust/src/bitcoin_core.rs
index 9c85d45f..eff64c8c 100644
--- a/clients/tests/rust/src/bitcoin_core.rs
+++ b/clients/tests/rust/src/bitcoin_core.rs
@@ -1,4 +1,4 @@
-use std::process::Command;
+use std::{process::Command, thread};
 use anyhow::{anyhow, Result, Ok};
 
 pub fn get_container_id() -> Result<String> {
@@ -56,7 +56,12 @@ pub fn generatetoaddress(num_blocks: u32, address: &str) -> Result<String> {
         "bitcoin-cli -regtest -rpcuser=user -rpcpassword=pass generatetoaddress {} {}", num_blocks, address
     );
 
-    execute_bitcoin_command(&bitcoin_command)
+    let res = execute_bitcoin_command(&bitcoin_command);
+
+    // The command may take some time to execute
+    thread::sleep(std::time::Duration::from_secs(1));
+
+    res
 }
 
 pub fn getnewaddress() -> Result<String> {
diff --git a/clients/tests/rust/src/main.rs b/clients/tests/rust/src/main.rs
index 487073d6..e52b3758 100644
--- a/clients/tests/rust/src/main.rs
+++ b/clients/tests/rust/src/main.rs
@@ -6,6 +6,7 @@ pub mod tb02_transfer_address_reuse;
 pub mod tb03_simple_atomic_transfer;
 pub mod tm01_sender_double_spends;
 pub mod ta01_sign_second_not_called;
+pub mod tb04_simple_lightning_latch;
 use anyhow::{Result, Ok};
 
 #[tokio::main(flavor = "current_thread")]
@@ -14,8 +15,9 @@ async fn main() -> Result<()> {
     tb01_simple_transfer::execute().await?;
     tb02_transfer_address_reuse::execute().await?;
     tb03_simple_atomic_transfer::execute().await?;
+    tb04_simple_lightning_latch::execute().await?;
     tm01_sender_double_spends::execute().await?;
     ta01_sign_second_not_called::execute().await?;
-
+    
     Ok(())
 }
diff --git a/clients/tests/rust/src/tb03_simple_atomic_transfer.rs b/clients/tests/rust/src/tb03_simple_atomic_transfer.rs
index 81a18a56..f63ccef5 100644
--- a/clients/tests/rust/src/tb03_simple_atomic_transfer.rs
+++ b/clients/tests/rust/src/tb03_simple_atomic_transfer.rs
@@ -131,7 +131,7 @@ pub async fn execute() -> Result<()> {
 
     tb03(&client_config, &wallet1, &wallet2, &wallet3, &wallet4).await?;
 
-    println!("TB03- Simple Atomic Transfer Test completed successfully");
+    println!("TB03 - Simple Atomic Transfer Test completed successfully");
 
     Ok(())
 }
\ No newline at end of file
diff --git a/clients/tests/rust/src/tb04_simple_lightning_latch.rs b/clients/tests/rust/src/tb04_simple_lightning_latch.rs
new file mode 100644
index 00000000..f141efa3
--- /dev/null
+++ b/clients/tests/rust/src/tb04_simple_lightning_latch.rs
@@ -0,0 +1,97 @@
+use std::{env, process::Command, thread, time::Duration};
+use anyhow::{Result, Ok};
+use mercuryrustlib::{client_config::ClientConfig, CoinStatus, Wallet};
+
+use crate::{bitcoin_core, electrs};
+
+use sha2::{Sha256, Digest};
+
+pub async fn tb04(client_config: &ClientConfig, wallet1: &Wallet, wallet2: &Wallet) -> Result<()> {
+
+    let amount = 1000;
+
+    // Create first deposit address
+
+    let token_id = mercuryrustlib::deposit::get_token(client_config).await?;
+
+    let deposit_address = mercuryrustlib::deposit::get_deposit_bitcoin_address(&client_config, &wallet1.name, &token_id, amount).await?;
+
+    let _ = bitcoin_core::sendtoaddress(amount, &deposit_address)?;
+
+    let core_wallet_address = bitcoin_core::getnewaddress()?;
+    let remaining_blocks = client_config.confirmation_target;
+    let _ = bitcoin_core::generatetoaddress(remaining_blocks, &core_wallet_address)?;
+
+    // It appears that Electrs takes a few seconds to index the transaction
+    let mut is_tx_indexed = false;
+
+    while !is_tx_indexed {
+        is_tx_indexed = electrs::check_address(client_config, &deposit_address, amount).await?;
+        thread::sleep(Duration::from_secs(1));
+    }
+
+    mercuryrustlib::coin_status::update_coins(&client_config, &wallet1.name).await?;
+    let wallet1: mercuryrustlib::Wallet = mercuryrustlib::sqlite_manager::get_wallet(&client_config.pool, &wallet1.name).await?;
+    let new_coin = wallet1.coins.iter().find(|&coin| coin.aggregated_address == Some(deposit_address.clone()) && coin.status == CoinStatus::CONFIRMED).unwrap();
+    let statechain_id = new_coin.statechain_id.as_ref().unwrap();
+
+    let response = mercuryrustlib::lightning_latch::create_pre_image(&client_config, &wallet1.name, statechain_id).await?;
+
+    let batch_id = response.batch_id;
+    let hash = response.hash;
+
+    let wallet2_transfer_adress = mercuryrustlib::transfer_receiver::new_transfer_address(&client_config, &wallet2.name).await?;
+
+    mercuryrustlib::transfer_sender::execute(&client_config, &wallet2_transfer_adress, &wallet1.name, statechain_id, Some(batch_id.clone())).await?;
+    
+    let transfer_receive_result = mercuryrustlib::transfer_receiver::execute(&client_config, &wallet2.name).await?;
+
+    assert!(transfer_receive_result.is_there_batch_locked);
+    assert!(transfer_receive_result.received_statechain_ids.is_empty());
+
+    mercuryrustlib::lightning_latch::confirm_pending_invoice(&client_config, &wallet1.name, &statechain_id).await?;
+
+    let transfer_receive_result = mercuryrustlib::transfer_receiver::execute(&client_config, &wallet2.name).await?;
+
+    assert!(!transfer_receive_result.is_there_batch_locked);
+    assert!(!transfer_receive_result.received_statechain_ids.is_empty());
+
+    let pre_image = mercuryrustlib::lightning_latch::retrieve_pre_image(&client_config, &wallet1.name, &statechain_id, &batch_id).await?;
+
+    let mut hasher = Sha256::new();
+    hasher.update(pre_image.as_bytes());
+    let result = hasher.finalize();
+
+    let sha256_pre_image = hex::encode(result);
+
+    assert!(sha256_pre_image == hash);
+
+    Ok(())
+}
+
+pub async fn execute() -> Result<()> {
+
+    let _ = Command::new("rm").arg("wallet.db").arg("wallet.db-shm").arg("wallet.db-wal").output().expect("failed to execute process");
+
+    env::set_var("ML_NETWORK", "regtest");
+
+    let client_config = mercuryrustlib::client_config::load().await;
+
+    let wallet1 = mercuryrustlib::wallet::create_wallet(
+        "wallet1", 
+        &client_config).await?;
+
+    mercuryrustlib::sqlite_manager::insert_wallet(&client_config.pool, &wallet1).await?;
+
+    let wallet2 = mercuryrustlib::wallet::create_wallet(
+        "wallet2", 
+        &client_config).await?;
+
+    mercuryrustlib::sqlite_manager::insert_wallet(&client_config.pool, &wallet2).await?;
+
+    tb04(&client_config, &wallet1, &wallet2).await?;
+
+    println!("TB04 - Simple Lightning Latch completed successfully");
+
+    Ok(())
+}
diff --git a/server/Cargo.toml b/server/Cargo.toml
index 2e341dd6..e3814d91 100644
--- a/server/Cargo.toml
+++ b/server/Cargo.toml
@@ -21,3 +21,4 @@ secp256k1-zkp = { git = "https://github.com/ssantos21/rust-secp256k1-zkp.git", b
 # secp256k1-zkp = { path = "../ss-rust-secp256k1-zkp", features = [ "rand-std", "bitcoin_hashes", "std" ] }
 mercurylib = { path = "../lib" }
 chrono = "0.4.31"
+sha2 = "0.10.8"
diff --git a/server/src/endpoints/lightning_latch.rs b/server/src/endpoints/lightning_latch.rs
index eb72c20c..652c66de 100644
--- a/server/src/endpoints/lightning_latch.rs
+++ b/server/src/endpoints/lightning_latch.rs
@@ -1,6 +1,5 @@
 use std::str::FromStr;
 
-use bitcoin::hashes::Hash;
 use chrono::Duration;
 use hex::encode;
 use mercurylib::transfer::sender::{PaymentHashRequestPayload, PaymentHashResponsePayload, TransferPreimageRequestPayload, TransferPreimageResponsePayload};
@@ -9,6 +8,8 @@ use rocket::{State, serde::json::Json, response::status, http::Status};
 use secp256k1_zkp::PublicKey;
 use serde_json::{json, Value};
 
+use sha2::{Sha256, Digest};
+
 use crate::server::StateChainEntity;
 
 #[post("/transfer/paymenthash", format = "json", data = "<payment_hash_payload>")]
@@ -30,7 +31,7 @@ pub async fn paymenthash(statechain_entity: &State<StateChainEntity>, payment_ha
     let sender_auth_key = super::utils::get_auth_key_by_statechain_id(&statechain_entity.pool, &statechain_id).await.unwrap();
 
     let buffer = rand::thread_rng().gen::<[u8; 32]>();
-    let pre_image = encode(&buffer.clone());
+    let pre_image = encode(buffer.clone());
 
     let now = chrono::Utc::now();
     let expiry_time = Duration::seconds(90000); // 25h
@@ -38,9 +39,11 @@ pub async fn paymenthash(statechain_entity: &State<StateChainEntity>, payment_ha
 
     crate::database::lightning_latch::insert_paymenthash(&statechain_entity.pool, &statechain_id, &sender_auth_key, &batch_id, &pre_image, &expires_at).await;
 
-    let result_hash = bitcoin::hashes::sha256::Hash::hash(&buffer);
-    let hash_bytes = result_hash.as_byte_array();
-    let payment_hash = encode(hash_bytes);
+    let mut hasher = Sha256::new();
+    hasher.update(pre_image.as_bytes());
+    let result = hasher.finalize();
+
+    let payment_hash = hex::encode(result);
 
     let payment_hash_response_payload = PaymentHashResponsePayload {
         hash: payment_hash,