diff --git a/README.md b/README.md
index 24dd0c4..8d2a087 100644
--- a/README.md
+++ b/README.md
@@ -21,6 +21,7 @@ Features not supported:
 
 Constructors:
 
+* `generate([icap])` - create an instance based on a new random key (setting `icap` to true will generate an address suitable for the `ICAP Direct mode`)
 * `fromPrivateKey(input)` - create an instance based on a raw key
 * `fromV1(input, password)` - import a wallet (Version 1 of the Ethereum wallet format)
 * `fromV3(input, password)` - import a wallet (Version 3 of the Ethereum wallet format)
diff --git a/index.js b/index.js
index 4a90393..3c92c47 100644
--- a/index.js
+++ b/index.js
@@ -17,6 +17,19 @@ var Wallet = function (priv) {
   this.privKey = priv
 }
 
+Wallet.generate = function (icapDirect) {
+  if (icapDirect) {
+    while (true) {
+      var privKey = crypto.randomBytes(32)
+      if (ethUtil.privateToAddress(privKey)[0] === 0) {
+        return new Wallet(privKey)
+      }
+    }
+  } else {
+    return new Wallet(crypto.randomBytes(32))
+  }
+}
+
 Wallet.prototype.getPrivateKey = function () {
   return this.privKey
 }