diff --git a/src/Makefile.test.include b/src/Makefile.test.include
index bbc2f7888..485fe1c73 100644
--- a/src/Makefile.test.include
+++ b/src/Makefile.test.include
@@ -1,227 +1,230 @@
 # Copyright (c) 2013-2016 The Bitcoin Core developers
 # Distributed under the MIT software license, see the accompanying
 # file COPYING or http://www.opensource.org/licenses/mit-license.php.
 
 bin_PROGRAMS += test/test_bitcoin
 noinst_PROGRAMS += test/test_bitcoin_fuzzy
 TEST_SRCDIR = test
 TEST_BINARY=test/test_bitcoin$(EXEEXT)
 
 JSON_TEST_FILES = \
   test/data/base58_encode_decode.json \
   test/data/blockfilters.json \
   test/data/key_io_valid.json \
   test/data/key_io_invalid.json \
   test/data/script_tests.json \
   test/data/sighash.json \
   test/data/tx_invalid.json \
   test/data/tx_valid.json
 
 RAW_TEST_FILES =
 
 GENERATED_TEST_FILES = $(JSON_TEST_FILES:.json=.json.h) $(RAW_TEST_FILES:.raw=.raw.h)
 
 BITCOIN_TEST_SUITE = \
   test/jsonutil.cpp \
   test/scriptflags.cpp \
   test/sigutil.cpp \
   test/test_bitcoin_main.cpp \
   test/test_bitcoin.h \
   test/test_bitcoin.cpp
 
 # test_bitcoin binary #
 BITCOIN_TESTS =\
   test/scriptnum10.h \
   test/activation_tests.cpp \
   test/addrman_tests.cpp \
   test/allocator_tests.cpp \
   test/amount_tests.cpp \
   test/arith_uint256_tests.cpp \
   test/avalanche_tests.cpp \
   test/base32_tests.cpp \
   test/base58_tests.cpp \
   test/base64_tests.cpp \
   test/bip32_tests.cpp \
   test/bitmanip_tests.cpp \
   test/blockchain_tests.cpp \
   test/blockcheck_tests.cpp \
   test/blockencodings_tests.cpp \
   test/blockfilter_tests.cpp \
   test/blockindex_tests.cpp \
   test/blockstatus_tests.cpp \
   test/bloom_tests.cpp \
   test/bswap_tests.cpp \
   test/cashaddr_tests.cpp \
   test/cashaddrenc_tests.cpp \
   test/checkdatasig_tests.cpp \
   test/checkpoints_tests.cpp \
   test/checkqueue_tests.cpp \
   test/coins_tests.cpp \
   test/compress_tests.cpp \
   test/config_tests.cpp \
   test/core_io_tests.cpp \
   test/crypto_tests.cpp \
   test/cuckoocache_tests.cpp \
   test/dbwrapper_tests.cpp \
   test/denialofservice_tests.cpp \
   test/descriptor_tests.cpp \
   test/dstencode_tests.cpp \
   test/excessiveblock_tests.cpp \
   test/feerate_tests.cpp \
   test/finalization_tests.cpp \
   test/flatfile_tests.cpp \
   test/getarg_tests.cpp \
   test/hash_tests.cpp \
   test/inv_tests.cpp \
   test/jsonutil.h \
   test/key_io_tests.cpp \
   test/key_tests.cpp \
   test/lcg_tests.cpp \
   test/lcg.h \
   test/limitedmap_tests.cpp \
   test/mempool_tests.cpp \
   test/merkle_tests.cpp \
   test/merkleblock_tests.cpp \
   test/miner_tests.cpp \
   test/monolith_opcodes_tests.cpp \
   test/multisig_tests.cpp \
   test/net_tests.cpp \
   test/netbase_tests.cpp \
   test/pmt_tests.cpp \
   test/policyestimator_tests.cpp \
   test/pow_tests.cpp \
   test/prevector_tests.cpp \
   test/radix_tests.cpp \
   test/raii_event_tests.cpp \
   test/random_tests.cpp \
   test/rcu_tests.cpp \
   test/reverselock_tests.cpp \
   test/rpc_tests.cpp \
   test/rpc_server_tests.cpp \
   test/rwcollection_tests.cpp \
   test/sanity_tests.cpp \
   test/scheduler_tests.cpp \
   test/schnorr_tests.cpp \
   test/script_commitment_tests.cpp \
   test/script_bitfield_tests.cpp \
   test/script_p2sh_tests.cpp \
   test/script_standard_tests.cpp \
   test/script_tests.cpp \
   test/scriptflags.h \
   test/scriptnum_tests.cpp \
   test/serialize_tests.cpp \
   test/sigcache_tests.cpp \
   test/sigencoding_tests.cpp \
   test/sighash_tests.cpp \
   test/sighashtype_tests.cpp \
   test/sigcheckcount_tests.cpp \
   test/sigopcount_tests.cpp \
   test/sigutil.h \
   test/skiplist_tests.cpp \
   test/streams_tests.cpp \
   test/sync_tests.cpp \
   test/timedata_tests.cpp \
   test/torcontrol_tests.cpp \
   test/transaction_tests.cpp \
   test/txindex_tests.cpp \
   test/txvalidation_tests.cpp \
   test/txvalidationcache_tests.cpp \
   test/uint256_tests.cpp \
   test/undo_tests.cpp \
   test/util_tests.cpp \
   test/validation_block_tests.cpp \
   test/validation_tests.cpp \
   test/work_comparator_tests.cpp \
   rpc/test/server_tests.cpp
 
 if ENABLE_WALLET
 BITCOIN_TESTS += \
   wallet/test/accounting_tests.cpp \
   wallet/test/db_tests.cpp \
   wallet/test/psbt_wallet_tests.cpp \
   wallet/test/wallet_tests.cpp \
   wallet/test/walletdb_tests.cpp \
   wallet/test/wallet_crypto_tests.cpp \
-  wallet/test/coinselector_tests.cpp
+  wallet/test/coinselector_tests.cpp \
+  wallet/test/init_tests.cpp
 
 BITCOIN_TEST_SUITE += \
   wallet/test/wallet_test_fixture.cpp \
-  wallet/test/wallet_test_fixture.h
+  wallet/test/wallet_test_fixture.h \
+  wallet/test/init_test_fixture.cpp \
+  wallet/test/init_test_fixture.h
 endif
 
 test_test_bitcoin_SOURCES = $(BITCOIN_TEST_SUITE) $(BITCOIN_TESTS) $(JSON_TEST_FILES) $(RAW_TEST_FILES)
 test_test_bitcoin_CPPFLAGS = $(AM_CPPFLAGS) $(BITCOIN_INCLUDES) $(TESTDEFS) $(EVENT_CFLAGS)
 test_test_bitcoin_LDADD =
 if ENABLE_WALLET
 test_test_bitcoin_LDADD += $(LIBBITCOIN_WALLET)
 endif
 
 test_test_bitcoin_LDADD += $(LIBBITCOIN_SERVER) $(LIBBITCOIN_CLI) $(LIBBITCOIN_COMMON) $(LIBBITCOIN_UTIL) $(LIBBITCOIN_CONSENSUS) $(LIBBITCOIN_CRYPTO) $(LIBUNIVALUE) \
   $(LIBLEVELDB) $(LIBLEVELDB_SSE42) $(LIBMEMENV) $(BOOST_LIBS) $(BOOST_UNIT_TEST_FRAMEWORK_LIB) $(LIBSECP256K1) $(EVENT_LIBS) $(EVENT_PTHREADS_LIBS)
 test_test_bitcoin_CXXFLAGS = $(AM_CXXFLAGS) $(PIE_FLAGS)
 
 test_test_bitcoin_LDADD += $(LIBBITCOIN_CONSENSUS) $(BDB_LIBS) $(SSL_LIBS) $(CRYPTO_LIBS) $(MINIUPNPC_LIBS)
 test_test_bitcoin_LDFLAGS = $(RELDFLAGS) $(AM_LDFLAGS) $(LIBTOOL_APP_LDFLAGS) -static
 
 if ENABLE_ZMQ
 test_test_bitcoin_LDADD += $(LIBBITCOIN_ZMQ) $(ZMQ_LIBS)
 endif
 #
 
 # test_bitcoin_fuzzy binary #
 test_test_bitcoin_fuzzy_SOURCES = test/test_bitcoin_fuzzy.cpp
 test_test_bitcoin_fuzzy_CPPFLAGS = $(AM_CPPFLAGS) $(BITCOIN_INCLUDES)
 test_test_bitcoin_fuzzy_CXXFLAGS = $(AM_CXXFLAGS) $(PIE_FLAGS)
 test_test_bitcoin_fuzzy_LDFLAGS = $(RELDFLAGS) $(AM_LDFLAGS) $(LIBTOOL_APP_LDFLAGS)
 
 test_test_bitcoin_fuzzy_LDADD = \
   $(LIBUNIVALUE) \
   $(LIBBITCOIN_SERVER) \
   $(LIBBITCOIN_COMMON) \
   $(LIBBITCOIN_UTIL) \
   $(LIBBITCOIN_CONSENSUS) \
   $(LIBBITCOIN_CRYPTO) \
   $(LIBSECP256K1)
 
 test_test_bitcoin_fuzzy_LDADD += $(BOOST_LIBS) $(CRYPTO_LIBS)
 #
 
 nodist_test_test_bitcoin_SOURCES = $(GENERATED_TEST_FILES)
 
 $(BITCOIN_TESTS): $(GENERATED_TEST_FILES)
 
 CLEAN_BITCOIN_TEST = test/*.gcda test/*.gcno $(GENERATED_TEST_FILES)
 
 CLEANFILES += $(CLEAN_BITCOIN_TEST)
 
 bitcoin_test: $(TEST_BINARY)
 
 bitcoin_test_check: $(TEST_BINARY) FORCE
 	$(MAKE) check-TESTS TESTS=$^
 
 bitcoin_test_clean : FORCE
 	rm -f $(CLEAN_BITCOIN_TEST) $(test_test_bitcoin_OBJECTS) $(TEST_BINARY)
 
 check-local: $(BITCOIN_TESTS:.cpp=.cpp.test)
 	@echo "Running test/util/bitcoin-util-test.py..."
 	$(top_builddir)/test/util/bitcoin-util-test.py
 	@echo "Running test/util/rpcauth-test.py..."
 	$(top_builddir)/test/util/rpcauth-test.py
 	$(AM_V_at)$(MAKE) $(AM_MAKEFLAGS) -C secp256k1 check
 if EMBEDDED_UNIVALUE
 	$(AM_V_at)$(MAKE) $(AM_MAKEFLAGS) -C univalue check
 endif
 
 %.cpp.test: %.cpp
 	@echo Running tests: `cat $< | grep "BOOST_FIXTURE_TEST_SUITE(\|BOOST_AUTO_TEST_SUITE(" | cut -d '(' -f 2 | cut -d ',' -f 1 | cut -d ')' -f 1` from $<
 	$(AM_V_at)$(TEST_BINARY) -l test_suite -t "`cat $< | grep "BOOST_FIXTURE_TEST_SUITE(\|BOOST_AUTO_TEST_SUITE(" | cut -d '(' -f 2 | cut -d ',' -f 1 | cut -d ')' -f 1`" > $@.log 2>&1 || (cat $@.log && false)
 
 %.json.h: %.json
 	@$(MKDIR_P) $(@D)
 	@{ \
 	 echo "namespace json_tests{" && \
 	 echo "static unsigned const char $(*F)[] = {" && \
 	 $(HEXDUMP) -v -e '8/1 "0x%02x, "' -e '"\n"' $< | $(SED) -e 's/0x  ,//g' && \
 	 echo "};};"; \
 	} > "$@.new" && mv -f "$@.new" "$@"
 	@echo "Generated $@"
diff --git a/src/test/CMakeLists.txt b/src/test/CMakeLists.txt
index eaddf723e..56161aca8 100644
--- a/src/test/CMakeLists.txt
+++ b/src/test/CMakeLists.txt
@@ -1,189 +1,191 @@
 # Copyright (c) 2018 The Bitcoin developers
 
 project(bitcoin-test)
 
 # Process json files.
 file(MAKE_DIRECTORY "${CMAKE_CURRENT_BINARY_DIR}/data")
 
 function(gen_json_header NAME)
 	set(HEADERS "")
 	foreach(f ${ARGN})
 		set(h "${CMAKE_CURRENT_BINARY_DIR}/${f}.h")
 
 		# Get the proper name for the test variable.
 		get_filename_component(TEST_NAME ${f} NAME_WE)
 		add_custom_command(OUTPUT ${h}
 			COMMAND
 				"${PYTHON_EXECUTABLE}"
 				"${CMAKE_CURRENT_SOURCE_DIR}/data/generate_header.py"
 				"${TEST_NAME}"
 				"${CMAKE_CURRENT_SOURCE_DIR}/${f}" > ${h}
 			MAIN_DEPENDENCY ${f}
 			DEPENDS
 				"data/generate_header.py"
 			VERBATIM
 		)
 		list(APPEND HEADERS ${h})
 	endforeach(f)
 	set(${NAME} "${HEADERS}" PARENT_SCOPE)
 endfunction()
 
 gen_json_header(JSON_HEADERS
 	data/base58_encode_decode.json
 	data/blockfilters.json
 	data/key_io_valid.json
 	data/key_io_invalid.json
 	data/script_tests.json
 	data/sighash.json
 	data/tx_invalid.json
 	data/tx_valid.json
 )
 
 include(TestSuite)
 create_test_suite(bitcoin)
 add_dependencies(check check-bitcoin)
 
 if(BUILD_BITCOIN_WALLET)
 	set(BITCOIN_WALLET_TEST_FIXTURE
+		../wallet/test/init_test_fixture.cpp
 		../wallet/test/wallet_test_fixture.cpp
 	)
 	set(BITCOIN_WALLET_TESTS
 		../wallet/test/accounting_tests.cpp
 		../wallet/test/db_tests.cpp
 		../wallet/test/coinselector_tests.cpp
+		../wallet/test/init_tests.cpp
 		../wallet/test/psbt_wallet_tests.cpp
 		../wallet/test/wallet_tests.cpp
 		../wallet/test/walletdb_tests.cpp
 		../wallet/test/wallet_crypto_tests.cpp
 	)
 endif()
 
 add_boost_unit_tests_to_suite(bitcoin test_bitcoin
 	jsonutil.cpp
 	scriptflags.cpp
 	sigutil.cpp
 	test_bitcoin.cpp
 	test_bitcoin_main.cpp
 
 	# Tests generated from JSON
 	${JSON_HEADERS}
 
 	# Wallet test fixture
 	${BITCOIN_WALLET_TEST_FIXTURE}
 
 	TESTS
 		activation_tests.cpp
 		addrman_tests.cpp
 		allocator_tests.cpp
 		amount_tests.cpp
 		arith_uint256_tests.cpp
 		avalanche_tests.cpp
 		base32_tests.cpp
 		base58_tests.cpp
 		base64_tests.cpp
 		bip32_tests.cpp
 		bitmanip_tests.cpp
 		blockchain_tests.cpp
 		blockcheck_tests.cpp
 		blockencodings_tests.cpp
 		blockfilter_tests.cpp
 		blockindex_tests.cpp
 		blockstatus_tests.cpp
 		bloom_tests.cpp
 		bswap_tests.cpp
 		cashaddr_tests.cpp
 		cashaddrenc_tests.cpp
 		checkdatasig_tests.cpp
 		checkpoints_tests.cpp
 		checkqueue_tests.cpp
 		coins_tests.cpp
 		compress_tests.cpp
 		config_tests.cpp
 		core_io_tests.cpp
 		crypto_tests.cpp
 		cuckoocache_tests.cpp
 		dbwrapper_tests.cpp
 		denialofservice_tests.cpp
 		descriptor_tests.cpp
 		dstencode_tests.cpp
 		excessiveblock_tests.cpp
 		feerate_tests.cpp
 		finalization_tests.cpp
 		flatfile_tests.cpp
 		getarg_tests.cpp
 		hash_tests.cpp
 		inv_tests.cpp
 		key_io_tests.cpp
 		key_tests.cpp
 		lcg_tests.cpp
 		limitedmap_tests.cpp
 		mempool_tests.cpp
 		merkle_tests.cpp
 		merkleblock_tests.cpp
 		miner_tests.cpp
 		monolith_opcodes_tests.cpp
 		multisig_tests.cpp
 		net_tests.cpp
 		netbase_tests.cpp
 		pmt_tests.cpp
 		policyestimator_tests.cpp
 		pow_tests.cpp
 		prevector_tests.cpp
 		radix_tests.cpp
 		raii_event_tests.cpp
 		random_tests.cpp
 		rcu_tests.cpp
 		reverselock_tests.cpp
 		rpc_tests.cpp
 		rpc_server_tests.cpp
 		rwcollection_tests.cpp
 		sanity_tests.cpp
 		scheduler_tests.cpp
 		schnorr_tests.cpp
 		script_bitfield_tests.cpp
 		script_commitment_tests.cpp
 		script_p2sh_tests.cpp
 		script_standard_tests.cpp
 		script_tests.cpp
 		scriptnum_tests.cpp
 		serialize_tests.cpp
 		sigcache_tests.cpp
 		sigencoding_tests.cpp
 		sighash_tests.cpp
 		sighashtype_tests.cpp
 		sigcheckcount_tests.cpp
 		sigopcount_tests.cpp
 		skiplist_tests.cpp
 		streams_tests.cpp
 		sync_tests.cpp
 		timedata_tests.cpp
 		torcontrol_tests.cpp
 		transaction_tests.cpp
 		txindex_tests.cpp
 		txvalidation_tests.cpp
 		txvalidationcache_tests.cpp
 		uint256_tests.cpp
 		undo_tests.cpp
 		util_tests.cpp
 		validation_block_tests.cpp
 		validation_tests.cpp
 		work_comparator_tests.cpp
 
 		# RPC Tests
 		../rpc/test/server_tests.cpp
 
 		# Wallet tests
 		${BITCOIN_WALLET_TESTS}
 )
 
 target_link_libraries(test_bitcoin rpcclient server)
 if(TARGET bitcoinconsensus-shared)
 	target_link_libraries(test_bitcoin bitcoinconsensus-shared)
 else()
 	target_link_libraries(test_bitcoin bitcoinconsensus)
 endif()
 
 add_executable(test_bitcoin_fuzzy EXCLUDE_FROM_ALL
 	test_bitcoin_fuzzy.cpp
 )
 target_link_libraries(test_bitcoin_fuzzy server)
diff --git a/src/wallet/init.cpp b/src/wallet/init.cpp
index 919f504b9..26d7966d7 100644
--- a/src/wallet/init.cpp
+++ b/src/wallet/init.cpp
@@ -1,392 +1,399 @@
 // Copyright (c) 2009-2010 Satoshi Nakamoto
 // Copyright (c) 2009-2017 The Bitcoin Core developers
 // Copyright (c) 2018 The Bitcoin developers
 // Distributed under the MIT software license, see the accompanying
 // file COPYING or http://www.opensource.org/licenses/mit-license.php.
 
 #include <config.h>
 #include <init.h>
 #include <net.h>
 #include <scheduler.h>
 #include <util/moneystr.h>
 #include <util/system.h>
 #include <validation.h>
 #include <wallet/rpcdump.h>
 #include <wallet/rpcwallet.h>
 #include <wallet/wallet.h>
 #include <wallet/walletutil.h>
 #include <walletinitinterface.h>
 
 class WalletInit : public WalletInitInterface {
 public:
     //! Return the wallets help message.
     void AddWalletOptions() const override;
 
     //! Wallets parameter interaction
     bool ParameterInteraction() const override;
 
     //! Register wallet RPCs.
     void RegisterRPC(CRPCTable &tableRPC) const override;
 
     //! Responsible for reading and validating the -wallet arguments and
     //! verifying the wallet database.
     //  This function will perform salvage on the wallet if requested, as long
     //  as only one wallet is being loaded (WalletParameterInteraction forbids
     //  -salvagewallet, -zapwallettxes or -upgradewallet with multiwallet).
     bool Verify(const CChainParams &chainParams) const override;
 
     //! Load wallet databases.
     bool Open(const CChainParams &chainParams) const override;
 
     //! Complete startup of wallets.
     void Start(CScheduler &scheduler) const override;
 
     //! Flush all wallets in preparation for shutdown.
     void Flush() const override;
 
     //! Stop all wallets. Wallets will be flushed first.
     void Stop() const override;
 
     //! Close all wallets.
     void Close() const override;
 };
 
 const WalletInitInterface &g_wallet_init_interface = WalletInit();
 
 void WalletInit::AddWalletOptions() const {
     gArgs.AddArg(
         "-avoidpartialspends",
         strprintf("Group outputs by address, selecting all or none, instead of "
                   "selecting on a per-output basis. Privacy is improved as an "
                   "address is only used once (unless someone sends to it after "
                   "spending from it), but may result in slightly higher fees "
                   "as suboptimal coin selection may result due to the added "
                   "limitation (default: %u)",
                   DEFAULT_AVOIDPARTIALSPENDS),
         false, OptionsCategory::WALLET);
 
     gArgs.AddArg("-disablewallet",
                  "Do not load the wallet and disable wallet RPC calls", false,
                  OptionsCategory::WALLET);
     gArgs.AddArg("-fallbackfee=<amt>",
                  strprintf("A fee rate (in %s/kB) that will be used when fee "
                            "estimation has insufficient data (default: %s)",
                            CURRENCY_UNIT, FormatMoney(DEFAULT_FALLBACK_FEE)),
                  false, OptionsCategory::WALLET);
     gArgs.AddArg("-keypool=<n>",
                  strprintf("Set key pool size to <n> (default: %u)",
                            DEFAULT_KEYPOOL_SIZE),
                  false, OptionsCategory::WALLET);
     gArgs.AddArg(
         "-maxtxfee=<amt>",
         strprintf("Maximum total fees (in %s) to use in a single wallet "
                   "transaction or raw transaction; setting this too low may "
                   "abort large transactions (default: %s)",
                   CURRENCY_UNIT, FormatMoney(DEFAULT_TRANSACTION_MAXFEE)),
         false, OptionsCategory::DEBUG_TEST);
     gArgs.AddArg("-mintxfee=<amt>",
                  strprintf("Fees (in %s/kB) smaller than this are considered "
                            "zero fee for transaction creation (default: %s)",
                            CURRENCY_UNIT,
                            FormatMoney(DEFAULT_TRANSACTION_MINFEE_PER_KB)),
                  false, OptionsCategory::WALLET);
     gArgs.AddArg(
         "-paytxfee=<amt>",
         strprintf(
             "Fee (in %s/kB) to add to transactions you send (default: %s)",
             CURRENCY_UNIT,
             FormatMoney(CFeeRate{DEFAULT_PAY_TX_FEE}.GetFeePerK())),
         false, OptionsCategory::WALLET);
     gArgs.AddArg(
         "-rescan",
         "Rescan the block chain for missing wallet transactions on startup",
         false, OptionsCategory::WALLET);
     gArgs.AddArg(
         "-salvagewallet",
         "Attempt to recover private keys from a corrupt wallet on startup",
         false, OptionsCategory::WALLET);
 
     gArgs.AddArg(
         "-spendzeroconfchange",
         strprintf(
             "Spend unconfirmed change when sending transactions (default: %d)",
             DEFAULT_SPEND_ZEROCONF_CHANGE),
         false, OptionsCategory::WALLET);
     gArgs.AddArg("-upgradewallet", "Upgrade wallet to latest format on startup",
                  false, OptionsCategory::WALLET);
     gArgs.AddArg("-wallet=<path>",
                  "Specify wallet database path. Can be specified multiple "
                  "times to load multiple wallets. Path is interpreted relative "
                  "to <walletdir> if it is not absolute, and will be created if "
                  "it does not exist (as a directory containing a wallet.dat "
                  "file and log files). For backwards compatibility this will "
                  "also accept names of existing data files in <walletdir>.)",
                  false, OptionsCategory::WALLET);
     gArgs.AddArg(
         "-walletbroadcast",
         strprintf("Make the wallet broadcast transactions (default: %d)",
                   DEFAULT_WALLETBROADCAST),
         false, OptionsCategory::WALLET);
     gArgs.AddArg("-walletdir=<dir>",
                  "Specify directory to hold wallets (default: "
                  "<datadir>/wallets if it exists, otherwise <datadir>)",
                  false, OptionsCategory::WALLET);
     gArgs.AddArg("-walletnotify=<cmd>",
                  "Execute command when a wallet transaction changes (%s in cmd "
                  "is replaced by TxID)",
                  false, OptionsCategory::WALLET);
     gArgs.AddArg(
         "-zapwallettxes=<mode>",
         "Delete all wallet transactions and only recover those parts of the "
         "blockchain through -rescan on startup (1 = keep tx meta data e.g. "
         "account owner and payment request information, 2 = drop tx meta data)",
         false, OptionsCategory::WALLET);
 
     gArgs.AddArg("-dblogsize=<n>",
                  strprintf("Flush wallet database activity from memory to disk "
                            "log every <n> megabytes (default: %u)",
                            DEFAULT_WALLET_DBLOGSIZE),
                  true, OptionsCategory::WALLET_DEBUG_TEST);
     gArgs.AddArg(
         "-flushwallet",
         strprintf("Run a thread to flush wallet periodically (default: %d)",
                   DEFAULT_FLUSHWALLET),
         true, OptionsCategory::WALLET_DEBUG_TEST);
     gArgs.AddArg("-privdb",
                  strprintf("Sets the DB_PRIVATE flag in the wallet db "
                            "environment (default: %d)",
                            DEFAULT_WALLET_PRIVDB),
                  true, OptionsCategory::WALLET_DEBUG_TEST);
     gArgs.AddArg("-walletrejectlongchains",
                  strprintf("Wallet will not create transactions that violate "
                            "mempool chain limits (default: %d)",
                            DEFAULT_WALLET_REJECT_LONG_CHAINS),
                  true, OptionsCategory::WALLET_DEBUG_TEST);
 }
 
 bool WalletInit::ParameterInteraction() const {
     gArgs.SoftSetArg("-wallet", "");
     const bool is_multiwallet = gArgs.GetArgs("-wallet").size() > 1;
 
     if (gArgs.GetBoolArg("-disablewallet", DEFAULT_DISABLE_WALLET)) {
         return true;
     }
 
     if (gArgs.GetBoolArg("-blocksonly", DEFAULT_BLOCKSONLY) &&
         gArgs.SoftSetBoolArg("-walletbroadcast", false)) {
         LogPrintf("%s: parameter interaction: -blocksonly=1 -> setting "
                   "-walletbroadcast=0\n",
                   __func__);
     }
 
     if (gArgs.GetBoolArg("-salvagewallet", false) &&
         gArgs.SoftSetBoolArg("-rescan", true)) {
         if (is_multiwallet) {
             return InitError(
                 strprintf("%s is only allowed with a single wallet file",
                           "-salvagewallet"));
         }
         // Rewrite just private keys: rescan to find transactions
         LogPrintf("%s: parameter interaction: -salvagewallet=1 -> setting "
                   "-rescan=1\n",
                   __func__);
     }
 
     int zapwallettxes = gArgs.GetArg("-zapwallettxes", 0);
     // -zapwallettxes implies dropping the mempool on startup
     if (zapwallettxes != 0 && gArgs.SoftSetBoolArg("-persistmempool", false)) {
         LogPrintf("%s: parameter interaction: -zapwallettxes=%s -> setting "
                   "-persistmempool=0\n",
                   __func__, zapwallettxes);
     }
 
     // -zapwallettxes implies a rescan
     if (zapwallettxes != 0) {
         if (is_multiwallet) {
             return InitError(
                 strprintf("%s is only allowed with a single wallet file",
                           "-zapwallettxes"));
         }
         if (gArgs.SoftSetBoolArg("-rescan", true)) {
             LogPrintf("%s: parameter interaction: -zapwallettxes=%s -> setting "
                       "-rescan=1\n",
                       __func__, zapwallettxes);
         }
         LogPrintf("%s: parameter interaction: -zapwallettxes=<mode> -> setting "
                   "-rescan=1\n",
                   __func__);
     }
 
     if (is_multiwallet) {
         if (gArgs.GetBoolArg("-upgradewallet", false)) {
             return InitError(
                 strprintf("%s is only allowed with a single wallet file",
                           "-upgradewallet"));
         }
     }
 
     if (gArgs.GetBoolArg("-sysperms", false)) {
         return InitError("-sysperms is not allowed in combination with enabled "
                          "wallet functionality");
     }
 
     if (gArgs.GetArg("-prune", 0) && gArgs.GetBoolArg("-rescan", false)) {
         return InitError(
             _("Rescans are not possible in pruned mode. You will need to use "
               "-reindex which will download the whole blockchain again."));
     }
 
     if (minRelayTxFee.GetFeePerK() > HIGH_TX_FEE_PER_KB) {
         InitWarning(
             AmountHighWarn("-minrelaytxfee") + " " +
             _("The wallet will avoid paying less than the minimum relay fee."));
     }
 
     if (gArgs.IsArgSet("-maxtxfee")) {
         Amount nMaxFee = Amount::zero();
         if (!ParseMoney(gArgs.GetArg("-maxtxfee", ""), nMaxFee)) {
             return InitError(
                 AmountErrMsg("maxtxfee", gArgs.GetArg("-maxtxfee", "")));
         }
 
         if (nMaxFee > HIGH_MAX_TX_FEE) {
             InitWarning(_("-maxtxfee is set very high! Fees this large could "
                           "be paid on a single transaction."));
         }
 
         maxTxFee = nMaxFee;
         if (CFeeRate(maxTxFee, 1000) < minRelayTxFee) {
             return InitError(strprintf(
                 _("Invalid amount for -maxtxfee=<amount>: '%s' (must "
                   "be at least the minrelay fee of %s to prevent "
                   "stuck transactions)"),
                 gArgs.GetArg("-maxtxfee", ""), minRelayTxFee.ToString()));
         }
     }
 
     return true;
 }
 
 void WalletInit::RegisterRPC(CRPCTable &t) const {
     if (gArgs.GetBoolArg("-disablewallet", DEFAULT_DISABLE_WALLET)) {
         return;
     }
 
     RegisterWalletRPCCommands(t);
     RegisterDumpRPCCommands(t);
 }
 
 bool WalletInit::Verify(const CChainParams &chainParams) const {
     if (gArgs.GetBoolArg("-disablewallet", DEFAULT_DISABLE_WALLET)) {
         return true;
     }
 
     if (gArgs.IsArgSet("-walletdir")) {
         fs::path wallet_dir = gArgs.GetArg("-walletdir", "");
-        if (!fs::exists(wallet_dir)) {
+        boost::system::error_code error;
+        // The canonical path cleans the path, preventing >1 Berkeley
+        // environment instances for the same directory
+        fs::path canonical_wallet_dir = fs::canonical(wallet_dir, error);
+        if (error || !fs::exists(wallet_dir)) {
             return InitError(
                 strprintf(_("Specified -walletdir \"%s\" does not exist"),
                           wallet_dir.string()));
         } else if (!fs::is_directory(wallet_dir)) {
             return InitError(
                 strprintf(_("Specified -walletdir \"%s\" is not a directory"),
                           wallet_dir.string()));
+            // The canonical path transforms relative paths into absolute ones,
+            // so we check the non-canonical version
         } else if (!wallet_dir.is_absolute()) {
             return InitError(
                 strprintf(_("Specified -walletdir \"%s\" is a relative path"),
                           wallet_dir.string()));
         }
+        gArgs.ForceSetArg("-walletdir", canonical_wallet_dir.string());
     }
 
     LogPrintf("Using wallet directory %s\n", GetWalletDir().string());
 
     uiInterface.InitMessage(_("Verifying wallet(s)..."));
 
     std::vector<std::string> wallet_files = gArgs.GetArgs("-wallet");
 
     // Parameter interaction code should have thrown an error if -salvagewallet
     // was enabled with more than wallet file, so the wallet_files size check
     // here should have no effect.
     bool salvage_wallet =
         gArgs.GetBoolArg("-salvagewallet", false) && wallet_files.size() <= 1;
 
     // Keep track of each wallet absolute path to detect duplicates.
     std::set<fs::path> wallet_paths;
 
     for (const auto &wallet_file : wallet_files) {
         WalletLocation location(wallet_file);
 
         if (!wallet_paths.insert(location.GetPath()).second) {
             return InitError(strprintf(_("Error loading wallet %s. Duplicate "
                                          "-wallet filename specified."),
                                        wallet_file));
         }
 
         std::string error_string;
         std::string warning_string;
         bool verify_success =
             CWallet::Verify(chainParams, location, salvage_wallet, error_string,
                             warning_string);
         if (!error_string.empty()) {
             InitError(error_string);
         }
         if (!warning_string.empty()) {
             InitWarning(warning_string);
         }
         if (!verify_success) {
             return false;
         }
     }
 
     return true;
 }
 
 bool WalletInit::Open(const CChainParams &chainParams) const {
     if (gArgs.GetBoolArg("-disablewallet", DEFAULT_DISABLE_WALLET)) {
         LogPrintf("Wallet disabled!\n");
         return true;
     }
 
     for (const std::string &walletFile : gArgs.GetArgs("-wallet")) {
         std::shared_ptr<CWallet> pwallet = CWallet::CreateWalletFromFile(
             chainParams, WalletLocation(walletFile));
         if (!pwallet) {
             return false;
         }
         AddWallet(pwallet);
     }
 
     return true;
 }
 
 void WalletInit::Start(CScheduler &scheduler) const {
     for (const std::shared_ptr<CWallet> &pwallet : GetWallets()) {
         pwallet->postInitProcess();
     }
 
     // Run a thread to flush wallet periodically
     scheduler.scheduleEvery(
         [] {
             MaybeCompactWalletDB();
             return true;
         },
         500);
 }
 
 void WalletInit::Flush() const {
     for (const std::shared_ptr<CWallet> &pwallet : GetWallets()) {
         pwallet->Flush(false);
     }
 }
 
 void WalletInit::Stop() const {
     for (const std::shared_ptr<CWallet> &pwallet : GetWallets()) {
         pwallet->Flush(true);
     }
 }
 
 void WalletInit::Close() const {
     for (const std::shared_ptr<CWallet> &pwallet : GetWallets()) {
         RemoveWallet(pwallet);
     }
 }
diff --git a/src/wallet/test/init_test_fixture.cpp b/src/wallet/test/init_test_fixture.cpp
new file mode 100644
index 000000000..87b1a20a6
--- /dev/null
+++ b/src/wallet/test/init_test_fixture.cpp
@@ -0,0 +1,42 @@
+// Copyright (c) 2018 The Bitcoin Core developers
+// Distributed under the MIT software license, see the accompanying
+// file COPYING or http://www.opensource.org/licenses/mit-license.php.
+
+#include <wallet/test/init_test_fixture.h>
+
+#include <fs.h>
+#include <util/system.h>
+
+InitWalletDirTestingSetup::InitWalletDirTestingSetup(
+    const std::string &chainName)
+    : BasicTestingSetup(chainName) {
+    std::string sep;
+    sep += fs::path::preferred_separator;
+
+    m_datadir = SetDataDir("tempdir");
+    m_cwd = fs::current_path();
+
+    m_walletdir_path_cases["default"] = m_datadir / "wallets";
+    m_walletdir_path_cases["custom"] = m_datadir / "my_wallets";
+    m_walletdir_path_cases["nonexistent"] = m_datadir / "path_does_not_exist";
+    m_walletdir_path_cases["file"] = m_datadir / "not_a_directory.dat";
+    m_walletdir_path_cases["trailing"] = m_datadir / "wallets" / sep;
+    m_walletdir_path_cases["trailing2"] = m_datadir / "wallets" / sep / sep;
+
+    fs::current_path(m_datadir);
+    m_walletdir_path_cases["relative"] = "wallets";
+
+    fs::create_directories(m_walletdir_path_cases["default"]);
+    fs::create_directories(m_walletdir_path_cases["custom"]);
+    fs::create_directories(m_walletdir_path_cases["relative"]);
+    std::ofstream f(m_walletdir_path_cases["file"].BOOST_FILESYSTEM_C_STR);
+    f.close();
+}
+
+InitWalletDirTestingSetup::~InitWalletDirTestingSetup() {
+    fs::current_path(m_cwd);
+}
+
+void InitWalletDirTestingSetup::SetWalletDir(const fs::path &walletdir_path) {
+    gArgs.ForceSetArg("-walletdir", walletdir_path.string());
+}
diff --git a/src/wallet/test/init_test_fixture.h b/src/wallet/test/init_test_fixture.h
new file mode 100644
index 000000000..3307da7c0
--- /dev/null
+++ b/src/wallet/test/init_test_fixture.h
@@ -0,0 +1,21 @@
+// Copyright (c) 2018 The Bitcoin Core developers
+// Distributed under the MIT software license, see the accompanying
+// file COPYING or http://www.opensource.org/licenses/mit-license.php.
+
+#ifndef BITCOIN_WALLET_TEST_INIT_TEST_FIXTURE_H
+#define BITCOIN_WALLET_TEST_INIT_TEST_FIXTURE_H
+
+#include <test/test_bitcoin.h>
+
+struct InitWalletDirTestingSetup : public BasicTestingSetup {
+    explicit InitWalletDirTestingSetup(
+        const std::string &chainName = CBaseChainParams::MAIN);
+    ~InitWalletDirTestingSetup();
+    void SetWalletDir(const fs::path &walletdir_path);
+
+    fs::path m_datadir;
+    fs::path m_cwd;
+    std::map<std::string, fs::path> m_walletdir_path_cases;
+};
+
+#endif // BITCOIN_WALLET_TEST_INIT_TEST_FIXTURE_H
diff --git a/src/wallet/test/init_tests.cpp b/src/wallet/test/init_tests.cpp
new file mode 100644
index 000000000..f01ed2cb0
--- /dev/null
+++ b/src/wallet/test/init_tests.cpp
@@ -0,0 +1,71 @@
+// Copyright (c) 2018 The Bitcoin Core developers
+// Distributed under the MIT software license, see the accompanying
+// file COPYING or http://www.opensource.org/licenses/mit-license.php.
+
+#include <chainparams.h>
+#include <init.h>
+#include <wallet/wallet.h>
+#include <walletinitinterface.h>
+
+#include <test/test_bitcoin.h>
+#include <wallet/test/init_test_fixture.h>
+
+#include <boost/test/unit_test.hpp>
+
+BOOST_FIXTURE_TEST_SUITE(init_tests, InitWalletDirTestingSetup)
+
+BOOST_AUTO_TEST_CASE(walletinit_verify_walletdir_default) {
+    SetWalletDir(m_walletdir_path_cases["default"]);
+    bool result = g_wallet_init_interface.Verify(Params());
+    BOOST_CHECK(result == true);
+    fs::path walletdir = gArgs.GetArg("-walletdir", "");
+    fs::path expected_path = fs::canonical(m_walletdir_path_cases["default"]);
+    BOOST_CHECK(walletdir == expected_path);
+}
+
+BOOST_AUTO_TEST_CASE(walletinit_verify_walletdir_custom) {
+    SetWalletDir(m_walletdir_path_cases["custom"]);
+    bool result = g_wallet_init_interface.Verify(Params());
+    BOOST_CHECK(result == true);
+    fs::path walletdir = gArgs.GetArg("-walletdir", "");
+    fs::path expected_path = fs::canonical(m_walletdir_path_cases["custom"]);
+    BOOST_CHECK(walletdir == expected_path);
+}
+
+BOOST_AUTO_TEST_CASE(walletinit_verify_walletdir_does_not_exist) {
+    SetWalletDir(m_walletdir_path_cases["nonexistent"]);
+    bool result = g_wallet_init_interface.Verify(Params());
+    BOOST_CHECK(result == false);
+}
+
+BOOST_AUTO_TEST_CASE(walletinit_verify_walletdir_is_not_directory) {
+    SetWalletDir(m_walletdir_path_cases["file"]);
+    bool result = g_wallet_init_interface.Verify(Params());
+    BOOST_CHECK(result == false);
+}
+
+BOOST_AUTO_TEST_CASE(walletinit_verify_walletdir_is_not_relative) {
+    SetWalletDir(m_walletdir_path_cases["relative"]);
+    bool result = g_wallet_init_interface.Verify(Params());
+    BOOST_CHECK(result == false);
+}
+
+BOOST_AUTO_TEST_CASE(walletinit_verify_walletdir_no_trailing) {
+    SetWalletDir(m_walletdir_path_cases["trailing"]);
+    bool result = g_wallet_init_interface.Verify(Params());
+    BOOST_CHECK(result == true);
+    fs::path walletdir = gArgs.GetArg("-walletdir", "");
+    fs::path expected_path = fs::canonical(m_walletdir_path_cases["default"]);
+    BOOST_CHECK(walletdir == expected_path);
+}
+
+BOOST_AUTO_TEST_CASE(walletinit_verify_walletdir_no_trailing2) {
+    SetWalletDir(m_walletdir_path_cases["trailing2"]);
+    bool result = g_wallet_init_interface.Verify(Params());
+    BOOST_CHECK(result == true);
+    fs::path walletdir = gArgs.GetArg("-walletdir", "");
+    fs::path expected_path = fs::canonical(m_walletdir_path_cases["default"]);
+    BOOST_CHECK(walletdir == expected_path);
+}
+
+BOOST_AUTO_TEST_SUITE_END()