diff --git a/app/actions/_userActions.ts b/app/actions/_userActions.ts
index 68a87d8..5a47bdd 100644
--- a/app/actions/_userActions.ts
+++ b/app/actions/_userActions.ts
@@ -9,6 +9,7 @@ import {
   NotFoundError,
 } from "@/lib/errors";
 import { prisma } from "@/lib/prisma";
+import { createVault } from "./_vaultActions";
 
 export const finishOnboarding = withErrorHandling(
   withAuth(
@@ -18,6 +19,7 @@ export const finishOnboarding = withErrorHandling(
         salt: string;
         publicKey: string;
         wrappedPrivateKey: string;
+        wrappedDefaultVaultKey: string;
       }
     ) => {
       const client = await clerkClient();
@@ -26,7 +28,8 @@ export const finishOnboarding = withErrorHandling(
       // eslint-disable-next-line @typescript-eslint/no-non-null-assertion
       const email = user.primaryEmailAddress!.emailAddress;
 
-      const { salt, publicKey, wrappedPrivateKey } = data;
+      const { salt, publicKey, wrappedPrivateKey, wrappedDefaultVaultKey } =
+        data;
 
       try {
         // Check if user already exists
@@ -54,6 +57,11 @@ export const finishOnboarding = withErrorHandling(
           },
         });
 
+        await createVault({
+          name: "Private",
+          wrappedKey: wrappedDefaultVaultKey,
+        });
+
         await client.users.updateUser(user.id, {
           publicMetadata: {
             onboardingComplete: true,
diff --git a/components/auth/onboarding-form.tsx b/components/auth/onboarding-form.tsx
index f7ad8fe..d9b7eda 100644
--- a/components/auth/onboarding-form.tsx
+++ b/components/auth/onboarding-form.tsx
@@ -44,13 +44,14 @@ export function SignUpForm({
     }
 
     try {
-      const { publicKey, wrappedPrivateKey, salt } =
+      const { publicKey, wrappedPrivateKey, salt, wrappedDefaultVaultKey } =
         await cryptoService.onboarding(password);
 
       const response = await finishOnboarding({
         salt,
         publicKey,
         wrappedPrivateKey,
+        wrappedDefaultVaultKey,
       });
 
       // Handle error responses
diff --git a/lib/crypto.ts b/lib/crypto.ts
index 86d7c5e..15413fc 100644
--- a/lib/crypto.ts
+++ b/lib/crypto.ts
@@ -1,17 +1,24 @@
 export class CryptoService {
-  public async onboarding(
-    password: string
-  ): Promise<{ publicKey: string; wrappedPrivateKey: string; salt: string }> {
+  public async onboarding(password: string): Promise<{
+    publicKey: string;
+    wrappedPrivateKey: string;
+    salt: string;
+    wrappedDefaultVaultKey: string;
+  }> {
     const { publicKey, privateKey } = await this.generateKeyPair();
     const salt = crypto.getRandomValues(new Uint8Array(16));
     const kek = await this.deriveKek(password, salt);
     const wrappedPrivateKey = await this.wrapPrivateKey(privateKey, kek);
     const publicKeyBuffer = await crypto.subtle.exportKey("spki", publicKey);
+    const { wrappedKey: wrappedDefaultVaultKey } =
+      await this.generateAndWrapVaultKey(publicKey);
+
     return {
       publicKey: BufferTransformer.arrayBufferToBase64(publicKeyBuffer),
       wrappedPrivateKey:
         BufferTransformer.arrayBufferToBase64(wrappedPrivateKey),
       salt: BufferTransformer.arrayBufferToBase64(salt.buffer),
+      wrappedDefaultVaultKey,
     };
   }
 
@@ -184,7 +191,7 @@ export class CryptoService {
         hash: "SHA-256",
       },
       true,
-      ["encrypt", "decrypt"]
+      ["encrypt", "decrypt", "wrapKey"]
     );
   }