diff --git a/Cargo.lock b/Cargo.lock
index 86ec307..04102f1 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -481,6 +481,7 @@ dependencies = [
  "digest",
  "fiat-crypto",
  "rustc_version",
+ "serde",
  "subtle",
  "zeroize",
 ]
@@ -1947,13 +1948,17 @@ dependencies = [
  "clap",
  "dropshot",
  "ed25519-dalek",
+ "futures",
  "hex",
+ "hkdf",
  "http",
  "instrumentation",
  "rand",
  "schemars",
  "serde",
+ "serde_json",
  "serde_with",
+ "sha2",
  "slog",
  "slog-async",
  "sqlx",
@@ -1962,6 +1967,7 @@ dependencies = [
  "tracing",
  "tracing-slog",
  "uuid",
+ "x25519-dalek",
 ]
 
 [[package]]
@@ -2638,9 +2644,9 @@ dependencies = [
 
 [[package]]
 name = "serde_json"
-version = "1.0.135"
+version = "1.0.138"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "2b0d7ba2887406110130a978386c4e1befb98c674b4fba677954e4db976630d9"
+checksum = "d434192e7da787e94a6ea7e9670b26a036d0ca41e0b7efb2676dd32bae872949"
 dependencies = [
  "itoa",
  "memchr",
@@ -4167,6 +4173,18 @@ version = "0.5.5"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "1e9df38ee2d2c3c5948ea468a8406ff0db0b29ae1ffde1bcf20ef305bcc95c51"
 
+[[package]]
+name = "x25519-dalek"
+version = "2.0.1"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "c7e468321c81fb07fa7f4c636c3972b9100f0346e5b6a9f2bd0603a52f7ed277"
+dependencies = [
+ "curve25519-dalek",
+ "rand_core",
+ "serde",
+ "zeroize",
+]
+
 [[package]]
 name = "xtask"
 version = "0.2.0"
@@ -4248,6 +4266,20 @@ name = "zeroize"
 version = "1.8.1"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "ced3678a2879b30306d323f4542626697a464a97c0a07c9aebf7ebca65cd4dde"
+dependencies = [
+ "zeroize_derive",
+]
+
+[[package]]
+name = "zeroize_derive"
+version = "1.4.2"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "ce36e65b0d2999d2aafac989fb249189a141aee1f53c612c1f37d72631959f69"
+dependencies = [
+ "proc-macro2",
+ "quote",
+ "syn",
+]
 
 [[package]]
 name = "zerovec"
diff --git a/Cargo.toml b/Cargo.toml
index fdf3949..ea7bb55 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -36,6 +36,7 @@ dropshot = "0.15.1"
 ed25519-dalek = { version = "2.1.1", features = ["pem", "rand_core"] }
 futures = "0.3"
 hex = "0.4.3"
+hkdf = "0.12.4"
 http = "1.2.0"
 once_cell = "1.20.2"
 progenitor = "0.9"
@@ -44,8 +45,10 @@ reqwest = { version = "0.12.12", features = ["json", "stream", "rustls-tls"] }
 schemars = { version = "0.8.21", features = ["bytes", "chrono", "derive"] }
 semver = "1.0.24"
 serde = { version = "1.0.217", features = ["derive"] }
+serde_json = "1.0.138"
 serde_with = { version = "3.12.0", features = ["base64", "hex", "macros", "std"] }
 # serde_with_macros = { version = "3.12.0", features = ["schemars_0_8"] }
+sha2 = "0.10.8"
 slog = "2.7.0"
 slog-async = "2.8.0"
 tokio = { version = "1.43.0", features = ["full"] }
@@ -54,3 +57,4 @@ tracing-core = "0.1.33"
 tracing-chrome = "0.7.2"
 tracing-slog = { git = "https://github.com/oxidecomputer/tracing-slog", default-features = false }
 uuid = { version = "1", features = [ "serde", "v4" ] }
+x25519-dalek = { version = "2.0.1", features = ["serde", "static_secrets"] }
diff --git a/api.json b/api.json
index ae26182..d7c3f25 100644
--- a/api.json
+++ b/api.json
@@ -12,6 +12,16 @@
         ],
         "summary": "Get registration info",
         "operationId": "get_registration_info",
+        "parameters": [
+          {
+            "in": "query",
+            "name": "key",
+            "required": true,
+            "schema": {
+              "type": "string"
+            }
+          }
+        ],
         "responses": {
           "200": {
             "description": "successful operation",
@@ -171,26 +181,26 @@
       "RegistrationInfo": {
         "type": "object",
         "properties": {
-          "challenge": {
-            "type": "string"
-          },
-          "expiration": {
-            "type": "string",
-            "format": "date-time"
-          },
           "node_id": {
             "type": "string",
             "format": "uuid"
           },
-          "public_key": {
+          "nonce": {
             "type": "string"
+          },
+          "server_dh_pub": {
+            "type": "string"
+          },
+          "timestamp": {
+            "type": "string",
+            "format": "date-time"
           }
         },
         "required": [
-          "challenge",
-          "expiration",
           "node_id",
-          "public_key"
+          "nonce",
+          "server_dh_pub",
+          "timestamp"
         ]
       },
       "User": {
diff --git a/controller/Cargo.toml b/controller/Cargo.toml
index 6b2f178..f51b59a 100644
--- a/controller/Cargo.toml
+++ b/controller/Cargo.toml
@@ -11,13 +11,17 @@ chrono.workspace = true
 clap.workspace = true
 dropshot.workspace = true
 ed25519-dalek.workspace = true
+futures.workspace = true
 hex.workspace = true
+hkdf.workspace = true
 http.workspace = true
 instrumentation = { path = "../instrumentation" }
 rand.workspace = true
 schemars.workspace = true
 serde.workspace = true
+serde_json.workspace = true
 serde_with.workspace = true
+sha2.workspace = true
 slog-async.workspace = true
 slog.workspace = true
 sqlx = { version = "0.8.3", default-features = false, features = [
@@ -28,6 +32,7 @@ trace-request = { path = "../trace-request" }
 tracing-slog.workspace = true
 tracing.workspace = true
 uuid.workspace = true
+x25519-dalek.workspace = true
 
 [package.metadata.cargo-machete]
 ignored = ["http"]
diff --git a/controller/src/context.rs b/controller/src/context.rs
index b99d559..3d4d4e1 100644
--- a/controller/src/context.rs
+++ b/controller/src/context.rs
@@ -1,11 +1,20 @@
 use sqlx::postgres::PgPool;
 
+use crate::node::NodeController;
+
 pub struct ControllerContext {
     pub pg_pool: PgPool,
+    // pub node_controller: Mutex<NodeController>,
+    pub node_controller: NodeController,
 }
 
 impl ControllerContext {
     pub fn new(pg_pool: PgPool) -> ControllerContext {
-        ControllerContext { pg_pool }
+        // let node_controller = Mutex::new(NodeController::new(pg_pool.to_owned()));
+        let node_controller = NodeController::new(pg_pool.to_owned());
+        ControllerContext {
+            pg_pool,
+            node_controller,
+        }
     }
 }
diff --git a/controller/src/node/api.rs b/controller/src/node/api.rs
index cf51771..63517a0 100644
--- a/controller/src/node/api.rs
+++ b/controller/src/node/api.rs
@@ -1,45 +1,28 @@
-use chrono::DateTime;
-use dropshot::{endpoint, HttpError, HttpResponseOk, RequestContext};
+use dropshot::{endpoint, HttpError, HttpResponseOk, Query, RequestContext};
 use dropshot::{ApiDescription, ApiDescriptionRegisterError};
-use rand::RngCore;
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
-use serde_with::base64::Base64;
-use serde_with::base64::Crypt;
 use serde_with::serde_as;
 use trace_request::trace_request;
-use uuid::Uuid;
+use x25519_dalek::PublicKey;
 
 use std::sync::Arc;
 
 use crate::context::ControllerContext;
+use crate::node::controller::RegistrationInfo;
+
+#[serde_as]
+#[derive(Clone, Debug, Default, Deserialize, JsonSchema, Serialize)]
+pub struct RegistrationParams {
+    #[serde_as(as = "serde_with::base64::Base64<serde_with::base64::UrlSafe>")]
+    #[schemars(with = "String")]
+    key: [u8; 32],
+}
 
 pub fn register_api(
     api: &mut ApiDescription<Arc<ControllerContext>>,
 ) -> Result<(), ApiDescriptionRegisterError> {
     api.register(get_registration_info)
-    // api.register(register_node)
-}
-
-#[serde_as]
-#[derive(Deserialize, JsonSchema, Serialize)]
-struct RegistrationInfo {
-    node_id: Uuid,
-    expiration: DateTime<chrono::Utc>,
-
-    // #[serde_as(as = "Base64<serde_with::base64::BinHex, serde_with::formats::Unpadded>")]
-    // #[serde_as(as = "Base64<serde_with::base64::UrlSafe, serde_with::formats::Unpadded>")]
-    #[serde_as(as = "serde_with::base64::Base64")]
-    // #[serde_as(as = "serde_with::hex::Hex<serde_with::formats::Uppercase>")]
-    #[schemars(with = "String")]
-    challenge: [u8; 60],
-
-    // #[serde_as(as = "serde_with::base64::Base64")]
-    #[serde_as(as = "serde_with::hex::Hex")]
-    // #[serde_as(as = "Base64<serde_with::base64::UrlSafe, serde_with::formats::Unpadded>")]
-    // #[serde_as(as = "serde_with::hex::Hex<serde_with::formats::Uppercase>")]
-    #[schemars(with = "String")]
-    public_key: [u8; 32],
 }
 
 /// Get registration info
@@ -51,20 +34,10 @@ struct RegistrationInfo {
 #[trace_request]
 async fn get_registration_info(
     rqctx: RequestContext<Arc<ControllerContext>>,
+    params: Query<RegistrationParams>,
 ) -> Result<HttpResponseOk<RegistrationInfo>, HttpError> {
-    tracing::debug!("Registration info");
-
-    let rng = &mut rand::rngs::OsRng;
-    let mut challenge = [0u8; 60];
-    rng.fill_bytes(&mut challenge);
-    let key = ed25519_dalek::SigningKey::generate(rng);
-
-    let info = RegistrationInfo {
-        node_id: Uuid::new_v4(),
-        expiration: chrono::Utc::now(),
-        challenge,
-        public_key: key.verifying_key().to_bytes(),
-    };
-
+    let key = PublicKey::from(params.into_inner().key);
+    tracing::debug!("Registration info for public key: {:?}", key);
+    let info = rqctx.context().node_controller.new_registration(&key);
     Ok(HttpResponseOk(info))
 }
diff --git a/controller/src/node/controller.rs b/controller/src/node/controller.rs
new file mode 100644
index 0000000..1698dc7
--- /dev/null
+++ b/controller/src/node/controller.rs
@@ -0,0 +1,179 @@
+use chrono::DateTime;
+use ed25519_dalek::ed25519::signature::SignerMut;
+use hkdf::Hkdf;
+use rand::Rng;
+use schemars::JsonSchema;
+use serde::{Deserialize, Serialize};
+use serde_with::serde_as;
+use sha2::Sha256;
+use sqlx::postgres::PgPool;
+use uuid::Uuid;
+use x25519_dalek::{PublicKey, StaticSecret};
+
+use std::sync::{Arc, RwLock};
+
+#[serde_as]
+#[derive(Debug, Deserialize, JsonSchema, Serialize)]
+pub struct RegistrationInfo {
+    node_id: Uuid,
+    challenge: Challenge,
+
+    #[serde_as(as = "serde_with::base64::Base64")]
+    #[schemars(with = "String")]
+    challenge_signature: [u8; 64],
+}
+
+#[serde_as]
+#[derive(Debug, Deserialize, JsonSchema, Serialize)]
+pub struct Challenge {
+    timestamp: DateTime<chrono::Utc>,
+
+    #[serde_as(as = "serde_with::base64::Base64")]
+    #[schemars(with = "String")]
+    nonce: [u8; 32],
+
+    #[serde_as(as = "serde_with::base64::Base64")]
+    #[schemars(with = "String")]
+    server_dh_pub: [u8; 32],
+
+    params: ArgonParams,
+}
+
+#[serde_as]
+#[derive(Debug, Deserialize, JsonSchema, Serialize)]
+struct ArgonParams {
+    iterations: u32,
+    memory_kb: u32,
+    threads: u32,
+}
+
+pub struct NodeController {
+    _pg_pool: PgPool,
+    signing_key: RwLock<Option<Arc<SecretKey>>>,
+}
+
+type SecretKey = [u8; 32];
+type Nonce256 = [u8; 32];
+
+trait SecretKeyExt {
+    fn derive_dh_secret(&self, nonce: &Nonce256) -> StaticSecret;
+}
+
+impl SecretKeyExt for SecretKey {
+    fn derive_dh_secret(&self, nonce: &Nonce256) -> StaticSecret {
+        let hk = Hkdf::<Sha256>::new(Some(nonce), self);
+        let mut out = [0u8; 32];
+        hk.expand(b"x25519-secret", &mut out).unwrap();
+        StaticSecret::from(out)
+    }
+}
+
+impl RegistrationInfo {
+    pub fn from(server_secret: &SecretKey, client_dh_public_key: &PublicKey) -> RegistrationInfo {
+        let mut rng = rand::thread_rng();
+        let nonce = rng.gen();
+
+        let server_dh_secret = server_secret.derive_dh_secret(&nonce);
+        let _shared_secret = server_dh_secret.diffie_hellman(client_dh_public_key);
+        let server_dh_public_key = PublicKey::from(&server_dh_secret);
+
+        let timestamp = chrono::Utc::now();
+
+        let params = ArgonParams {
+            iterations: 10,
+            memory_kb: 220 * 1024, // 220 MiB
+            threads: 4,
+        };
+
+        let challenge = Challenge {
+            timestamp,
+            nonce,
+            server_dh_pub: server_dh_public_key.to_bytes(),
+            params,
+        };
+
+        let challenge_json = serde_json::to_vec(&challenge).unwrap();
+
+        let mut sk = ed25519_dalek::SigningKey::from_bytes(server_secret);
+        let sig = sk.sign(challenge_json.as_slice());
+
+        let info = RegistrationInfo {
+            node_id: Uuid::new_v4(),
+            challenge,
+            challenge_signature: sig.to_bytes(),
+        };
+
+        tracing::debug!("Info: {:?}", info);
+        info
+    }
+}
+
+impl NodeController {
+    pub fn new(pg_pool: PgPool) -> NodeController {
+        NodeController {
+            _pg_pool: pg_pool,
+            signing_key: RwLock::new(None),
+        }
+    }
+
+    pub fn new_registration(&self, client_dh_public_key: &PublicKey) -> RegistrationInfo {
+        let server_secret = self.master_key();
+        RegistrationInfo::from(&server_secret, client_dh_public_key)
+    }
+
+    fn master_key(&self) -> Arc<SecretKey> {
+        self.signing_key
+            .write()
+            .unwrap()
+            .get_or_insert_with(|| {
+                tracing::debug!("Generating key");
+                Arc::new(rand::rngs::OsRng.gen())
+            })
+            .clone()
+    }
+}
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+
+    #[tokio::test]
+    async fn test_registration_info() {
+        let client_key: SecretKey = rand::rngs::OsRng.gen();
+        let server_key = rand::rngs::OsRng.gen();
+        let client_public_key = PublicKey::from(client_key);
+
+        let info = RegistrationInfo::from(&server_key, &client_public_key);
+        let info2 = RegistrationInfo::from(&server_key, &client_public_key);
+
+        // Randomness
+        assert_ne!(info.node_id, info2.node_id, "Node ID should be unique");
+        assert_ne!(
+            info.challenge.nonce, info2.challenge.nonce,
+            "Nonce should be unique"
+        );
+        assert_ne!(
+            info.challenge.server_dh_pub, info2.challenge.server_dh_pub,
+            "Server public key derived from nonce should be unique"
+        );
+
+        // Timestamp
+        let now = chrono::Utc::now();
+        assert!(
+            info.challenge.timestamp <= now,
+            "Timestamp is in the future"
+        );
+        assert!(
+            info.challenge.timestamp >= now - chrono::Duration::milliseconds(5),
+            "Timestamp is too old"
+        );
+
+        // Public key
+        let server_dh_secret = server_key.derive_dh_secret(&info.challenge.nonce);
+        let server_dh_public_key = PublicKey::from(&server_dh_secret).to_bytes();
+        assert_eq!(
+            info.challenge.server_dh_pub, server_dh_public_key,
+            "Server public key should be derived from nonce"
+        );
+    }
+}
diff --git a/controller/src/node/mod.rs b/controller/src/node/mod.rs
index f35db4c..c67ce0c 100644
--- a/controller/src/node/mod.rs
+++ b/controller/src/node/mod.rs
@@ -1,3 +1,5 @@
 mod api;
+mod controller;
 
 pub use self::api::register_api;
+pub(crate) use self::controller::NodeController;