diff --git a/key_protocol/src/key_management/mod.rs b/key_protocol/src/key_management/mod.rs
index f22a99f..b642e13 100644
--- a/key_protocol/src/key_management/mod.rs
+++ b/key_protocol/src/key_management/mod.rs
@@ -39,6 +39,25 @@ impl KeyChain {
         }
     }
 
+    pub fn new_mnemonic(passphrase: String) -> Self {
+        //Currently dropping SeedHolder at the end of initialization.
+        //Now entirely sure if we need it in the future.
+        let seed_holder = SeedHolder::new_mnemonic(passphrase);
+        let secret_spending_key = seed_holder.produce_top_secret_key_holder();
+
+        let private_key_holder = secret_spending_key.produce_private_key_holder();
+
+        let nullifer_public_key = private_key_holder.generate_nullifier_public_key();
+        let incoming_viewing_public_key = private_key_holder.generate_incoming_viewing_public_key();
+
+        Self {
+            secret_spending_key,
+            private_key_holder,
+            nullifer_public_key,
+            incoming_viewing_public_key,
+        }
+    }
+
     pub fn calculate_shared_secret_receiver(
         &self,
         ephemeral_public_key_sender: EphemeralPublicKey,
diff --git a/key_protocol/src/key_management/secret_holders.rs b/key_protocol/src/key_management/secret_holders.rs
index 57dea90..f05a641 100644
--- a/key_protocol/src/key_management/secret_holders.rs
+++ b/key_protocol/src/key_management/secret_holders.rs
@@ -44,6 +44,18 @@ impl SeedHolder {
         }
     }
 
+    pub fn new_mnemonic(passphrase: String) -> Self {
+        let mut enthopy_bytes: [u8; 32] = [0; 32];
+        OsRng.fill_bytes(&mut enthopy_bytes);
+
+        let mnemonic = Mnemonic::from_entropy(&enthopy_bytes).unwrap();
+        let seed_wide = mnemonic.to_seed(passphrase);
+
+        Self {
+            seed: seed_wide.to_vec(),
+        }
+    }
+
     pub fn generate_secret_spending_key_hash(&self) -> HashType {
         let mut hash = hmac_sha512::HMAC::mac(&self.seed, "NSSA_seed");
 
diff --git a/key_protocol/src/key_protocol_core/mod.rs b/key_protocol/src/key_protocol_core/mod.rs
index b1ebe71..33a007a 100644
--- a/key_protocol/src/key_protocol_core/mod.rs
+++ b/key_protocol/src/key_protocol_core/mod.rs
@@ -14,6 +14,8 @@ pub struct NSSAUserData {
     pub pub_account_signing_keys: HashMap<nssa::Address, nssa::PrivateKey>,
     ///Map for all user private accounts
     pub user_private_accounts: HashMap<nssa::Address, (KeyChain, nssa_core::account::Account)>,
+    ///Mnemonic passphrase
+    pub password: String,
 }
 
 impl NSSAUserData {
@@ -64,6 +66,31 @@ impl NSSAUserData {
         Ok(Self {
             pub_account_signing_keys: accounts_keys,
             user_private_accounts: accounts_key_chains,
+            password: "mnemonic".to_string(),
+        })
+    }
+
+    pub fn new_with_accounts_and_password(
+        accounts_keys: HashMap<nssa::Address, nssa::PrivateKey>,
+        accounts_key_chains: HashMap<nssa::Address, (KeyChain, nssa_core::account::Account)>,
+        password: String,
+    ) -> Result<Self> {
+        if !Self::valid_public_key_transaction_pairing_check(&accounts_keys) {
+            anyhow::bail!(
+                "Key transaction pairing check not satisfied, there is addresses, which is not derived from keys"
+            );
+        }
+
+        if !Self::valid_private_key_transaction_pairing_check(&accounts_key_chains) {
+            anyhow::bail!(
+                "Key transaction pairing check not satisfied, there is addresses, which is not derived from keys"
+            );
+        }
+
+        Ok(Self {
+            pub_account_signing_keys: accounts_keys,
+            user_private_accounts: accounts_key_chains,
+            password,
         })
     }
 
@@ -100,6 +127,21 @@ impl NSSAUserData {
         address
     }
 
+    /// Generated new private key for privacy preserving transactions
+    ///
+    /// Returns the address of new account
+    pub fn generate_new_privacy_preserving_transaction_key_chain_mnemonic(
+        &mut self,
+    ) -> nssa::Address {
+        let key_chain = KeyChain::new_mnemonic(self.password.clone());
+        let address = nssa::Address::from(&key_chain.nullifer_public_key);
+
+        self.user_private_accounts
+            .insert(address, (key_chain, nssa_core::account::Account::default()));
+
+        address
+    }
+
     /// Returns the signing key for public transaction signatures
     pub fn get_private_account(
         &self,