diff --git a/Cargo.lock b/Cargo.lock
index 21e1b75..9fcb1bb 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -2030,8 +2030,11 @@ dependencies = [
  "anyhow",
  "env_logger",
  "log",
+ "monotree",
  "serde",
  "serde_json",
+ "sha2 0.10.8",
+ "storage",
 ]
 
 [[package]]
diff --git a/storage/src/lib.rs b/storage/src/lib.rs
index efb34cd..684dcc8 100644
--- a/storage/src/lib.rs
+++ b/storage/src/lib.rs
@@ -3,6 +3,7 @@ use std::{path::Path, sync::Arc};
 use block::Block;
 use error::DbError;
 use log::warn;
+use merkle_tree_public::TreeHashType;
 use rocksdb::{
     BoundColumnFamily, ColumnFamilyDescriptor, DBWithThreadMode, MultiThreaded, Options,
 };
@@ -15,6 +16,9 @@ pub mod nullifier_sparse_merkle_tree;
 pub mod transaction;
 pub mod utxo_commitment;
 
+///Account id on blockchain
+pub type AccountId = TreeHashType;
+
 ///Maximal size of stored blocks in base
 ///
 ///Used to control db size
diff --git a/utxo/Cargo.toml b/utxo/Cargo.toml
index 7bc3dc0..3a2f1b9 100644
--- a/utxo/Cargo.toml
+++ b/utxo/Cargo.toml
@@ -8,4 +8,9 @@ anyhow.workspace = true
 serde_json.workspace = true
 env_logger.workspace = true
 log.workspace = true
-serde.workspace = true
\ No newline at end of file
+serde.workspace = true
+monotree.workspace = true
+sha2.workspace = true
+
+[dependencies.storage]
+path = "../storage"
\ No newline at end of file
diff --git a/utxo/src/lib.rs b/utxo/src/lib.rs
index 08193b8..1b7e30c 100644
--- a/utxo/src/lib.rs
+++ b/utxo/src/lib.rs
@@ -1 +1,2 @@
-//ToDo: Add utxo module
+pub mod utxo_core;
+pub mod utxo_tree;
diff --git a/utxo/src/utxo_core.rs b/utxo/src/utxo_core.rs
new file mode 100644
index 0000000..d076598
--- /dev/null
+++ b/utxo/src/utxo_core.rs
@@ -0,0 +1,55 @@
+use anyhow::Result;
+use serde::{Deserialize, Serialize};
+use sha2::{digest::FixedOutput, Digest};
+use storage::{merkle_tree_public::TreeHashType, nullifier::UTXONullifier, AccountId};
+
+///Raw asset data
+pub type Asset = Vec<u8>;
+
+#[derive(Debug)]
+///Container for raw utxo payload
+pub struct UTXO {
+    pub hash: TreeHashType,
+    pub owner: AccountId,
+    pub nullifier: Option<UTXONullifier>,
+    pub asset: Asset,
+}
+
+#[derive(Debug, Clone, Serialize)]
+pub struct UTXOPayload {
+    pub owner: AccountId,
+    pub asset: Asset,
+}
+
+impl UTXO {
+    pub fn create_utxo_from_payload(payload_with_asset: UTXOPayload) -> Self {
+        let raw_payload = serde_json::to_vec(&payload_with_asset).unwrap();
+
+        let mut hasher = sha2::Sha256::new();
+
+        hasher.update(&raw_payload);
+
+        let hash = <TreeHashType>::from(hasher.finalize_fixed());
+
+        Self {
+            hash,
+            owner: payload_with_asset.owner,
+            nullifier: None,
+            asset: payload_with_asset.asset,
+        }
+    }
+
+    pub fn consume_utxo(&mut self, nullifier: UTXONullifier) -> Result<()> {
+        if self.nullifier.is_some() {
+            anyhow::bail!("UTXO already consumed");
+        } else {
+            self.nullifier = Some(nullifier);
+        }
+
+        Ok(())
+    }
+
+    pub fn interpret_asset<'de, ToInterpret: Deserialize<'de>>(&'de self) -> Result<ToInterpret> {
+        Ok(serde_json::from_slice(&self.asset)?)
+    }
+}
diff --git a/utxo/src/utxo_tree.rs b/utxo/src/utxo_tree.rs
new file mode 100644
index 0000000..147c458
--- /dev/null
+++ b/utxo/src/utxo_tree.rs
@@ -0,0 +1,74 @@
+use std::collections::HashMap;
+
+use monotree::database::MemoryDB;
+use monotree::hasher::Blake3;
+use monotree::{Hasher, Monotree, Proof};
+use storage::merkle_tree_public::TreeHashType;
+
+use crate::utxo_core::UTXO;
+
+pub struct UTXOSparseMerkleTree {
+    pub curr_root: Option<TreeHashType>,
+    pub tree: Monotree<MemoryDB, Blake3>,
+    pub hasher: Blake3,
+    pub store: HashMap<TreeHashType, UTXO>,
+}
+
+impl UTXOSparseMerkleTree {
+    pub fn new() -> Self {
+        UTXOSparseMerkleTree {
+            curr_root: None,
+            tree: Monotree::default(),
+            hasher: Blake3::new(),
+            store: HashMap::new(),
+        }
+    }
+
+    pub fn insert_item(&mut self, utxo: UTXO) -> Result<(), monotree::Errors> {
+        let root = self.curr_root.as_ref();
+
+        let new_root = self.tree.insert(root, &utxo.hash, &utxo.hash)?;
+
+        self.store.insert(utxo.hash, utxo);
+
+        self.curr_root = new_root;
+
+        Ok(())
+    }
+
+    pub fn insert_items(&mut self, utxos: Vec<UTXO>) -> Result<(), monotree::Errors> {
+        let root = self.curr_root.as_ref();
+
+        let hashes: Vec<TreeHashType> = utxos.iter().map(|item| item.hash).collect();
+
+        let new_root = self.tree.inserts(root, &hashes, &hashes)?;
+
+        for utxo in utxos {
+            self.store.insert(utxo.hash, utxo);
+        }
+
+        self.curr_root = new_root;
+
+        Ok(())
+    }
+
+    pub fn get_item(&mut self, hash: TreeHashType) -> Result<Option<&UTXO>, monotree::Errors> {
+        let hash = self.tree.get(self.curr_root.as_ref(), &hash)?;
+
+        Ok(hash.and_then(|hash| self.store.get(&hash)))
+    }
+
+    pub fn get_membership_proof(
+        &mut self,
+        nullifier_hash: TreeHashType,
+    ) -> Result<Option<Proof>, monotree::Errors> {
+        self.tree
+            .get_merkle_proof(self.curr_root.as_ref(), &nullifier_hash)
+    }
+}
+
+impl Default for UTXOSparseMerkleTree {
+    fn default() -> Self {
+        Self::new()
+    }
+}