diff --git a/server/cmd/arkd/main.go b/server/cmd/arkd/main.go
index 796a687..116ec59 100755
--- a/server/cmd/arkd/main.go
+++ b/server/cmd/arkd/main.go
@@ -79,19 +79,21 @@ func mainAction(_ *cli.Context) error {
 		BitcoindRpcPass:       cfg.BitcoindRpcPass,
 		BitcoindRpcHost:       cfg.BitcoindRpcHost,
 		BoardingExitDelay:     cfg.BoardingExitDelay,
+		UnlockerType:          cfg.UnlockerType,
+		UnlockerFilePath:      cfg.UnlockerFilePath,
 	}
 	svc, err := grpcservice.NewService(svcConfig, appConfig)
 	if err != nil {
 		return err
 	}
 
-	log.RegisterExitHandler(svc.Stop)
-
 	log.Info("starting service...")
 	if err := svc.Start(); err != nil {
 		return err
 	}
 
+	log.RegisterExitHandler(svc.Stop)
+
 	sigChan := make(chan os.Signal, 1)
 	signal.Notify(sigChan, syscall.SIGTERM, syscall.SIGINT, syscall.SIGQUIT, os.Interrupt)
 	<-sigChan
diff --git a/server/internal/app-config/config.go b/server/internal/app-config/config.go
index 863418e..5e69960 100644
--- a/server/internal/app-config/config.go
+++ b/server/internal/app-config/config.go
@@ -11,6 +11,7 @@ import (
 	scheduler "github.com/ark-network/ark/server/internal/infrastructure/scheduler/gocron"
 	txbuilder "github.com/ark-network/ark/server/internal/infrastructure/tx-builder/covenant"
 	cltxbuilder "github.com/ark-network/ark/server/internal/infrastructure/tx-builder/covenantless"
+	fileunlocker "github.com/ark-network/ark/server/internal/infrastructure/unlocker/file"
 	btcwallet "github.com/ark-network/ark/server/internal/infrastructure/wallet/btc-embedded"
 	liquidwallet "github.com/ark-network/ark/server/internal/infrastructure/wallet/liquid-standalone"
 	log "github.com/sirupsen/logrus"
@@ -37,6 +38,9 @@ var (
 		"ocean":     {},
 		"btcwallet": {},
 	}
+	supportedUnlockers = supportedType{
+		"file": {},
+	}
 	supportedNetworks = supportedType{
 		common.Bitcoin.Name:        {},
 		common.BitcoinTestNet.Name: {},
@@ -70,6 +74,9 @@ type Config struct {
 	BitcoindRpcPass string
 	BitcoindRpcHost string
 
+	UnlockerType     string
+	UnlockerFilePath string
+
 	repo      ports.RepoManager
 	svc       application.Service
 	adminSvc  application.AdminService
@@ -77,6 +84,7 @@ type Config struct {
 	txBuilder ports.TxBuilder
 	scanner   ports.BlockchainScanner
 	scheduler ports.SchedulerService
+	unlocker  ports.Unlocker
 }
 
 func (c *Config) Validate() error {
@@ -95,6 +103,9 @@ func (c *Config) Validate() error {
 	if !supportedScanners.supports(c.BlockchainScannerType) {
 		return fmt.Errorf("blockchain scanner type not supported, please select one of: %s", supportedScanners)
 	}
+	if len(c.UnlockerType) > 0 && !supportedUnlockers.supports(c.UnlockerType) {
+		return fmt.Errorf("unlocker type not supported, please select one of: %s", supportedUnlockers)
+	}
 	if c.RoundInterval < 2 {
 		return fmt.Errorf("invalid round interval, must be at least 2 seconds")
 	}
@@ -151,7 +162,7 @@ func (c *Config) Validate() error {
 		return err
 	}
 	if err := c.walletService(); err != nil {
-		return fmt.Errorf("failed to connect to wallet: %s", err)
+		return err
 	}
 	if err := c.txBuilderService(); err != nil {
 		return err
@@ -165,6 +176,9 @@ func (c *Config) Validate() error {
 	if err := c.adminService(); err != nil {
 		return err
 	}
+	if err := c.unlockerService(); err != nil {
+		return err
+	}
 	return nil
 }
 
@@ -185,6 +199,10 @@ func (c *Config) WalletService() ports.WalletService {
 	return c.wallet
 }
 
+func (c *Config) UnlockerService() ports.Unlocker {
+	return c.unlocker
+}
+
 func (c *Config) repoManager() error {
 	var svc ports.RepoManager
 	var err error
@@ -227,7 +245,7 @@ func (c *Config) walletService() error {
 	if common.IsLiquid(c.Network) {
 		svc, err := liquidwallet.NewService(c.WalletAddr)
 		if err != nil {
-			return err
+			return fmt.Errorf("failed to connect to wallet: %s", err)
 		}
 
 		c.wallet = svc
@@ -353,6 +371,26 @@ func (c *Config) adminService() error {
 	return nil
 }
 
+func (c *Config) unlockerService() error {
+	if len(c.UnlockerType) <= 0 {
+		return nil
+	}
+
+	var svc ports.Unlocker
+	var err error
+	switch c.UnlockerType {
+	case "file":
+		svc, err = fileunlocker.NewService(c.UnlockerFilePath)
+	default:
+		err = fmt.Errorf("unknown unlocker type")
+	}
+	if err != nil {
+		return err
+	}
+	c.unlocker = svc
+	return nil
+}
+
 type supportedType map[string]struct{}
 
 func (t supportedType) String() string {
diff --git a/server/internal/config/config.go b/server/internal/config/config.go
index eb12329..ba44727 100644
--- a/server/internal/config/config.go
+++ b/server/internal/config/config.go
@@ -36,6 +36,8 @@ type Config struct {
 	BitcoindRpcHost       string
 	TLSExtraIPs           []string
 	TLSExtraDomains       []string
+	UnlockerType          string
+	UnlockerFilePath      string
 }
 
 var (
@@ -59,12 +61,14 @@ var (
 	// #nosec G101
 	BitcoindRpcUser = "BITCOIND_RPC_USER"
 	// #nosec G101
-	BitcoindRpcPass = "BITCOIND_RPC_PASS"
-	BitcoindRpcHost = "BITCOIND_RPC_HOST"
-	NoMacaroons     = "NO_MACAROONS"
-	NoTLS           = "NO_TLS"
-	TLSExtraIP      = "TLS_EXTRA_IP"
-	TLSExtraDomain  = "TLS_EXTRA_DOMAIN"
+	BitcoindRpcPass  = "BITCOIND_RPC_PASS"
+	BitcoindRpcHost  = "BITCOIND_RPC_HOST"
+	NoMacaroons      = "NO_MACAROONS"
+	NoTLS            = "NO_TLS"
+	TLSExtraIP       = "TLS_EXTRA_IP"
+	TLSExtraDomain   = "TLS_EXTRA_DOMAIN"
+	UnlockerType     = "UNLOCKER_TYPE"
+	UnlockerFilePath = "UNLOCKER_FILE_PATH"
 
 	defaultDatadir               = common.AppDataDir("arkd", false)
 	defaultRoundInterval         = 5
@@ -142,6 +146,8 @@ func LoadConfig() (*Config, error) {
 		NoMacaroons:           viper.GetBool(NoMacaroons),
 		TLSExtraIPs:           viper.GetStringSlice(TLSExtraIP),
 		TLSExtraDomains:       viper.GetStringSlice(TLSExtraDomain),
+		UnlockerType:          viper.GetString(UnlockerType),
+		UnlockerFilePath:      viper.GetString(UnlockerFilePath),
 	}, nil
 }
 
diff --git a/server/internal/core/ports/unlocker.go b/server/internal/core/ports/unlocker.go
new file mode 100644
index 0000000..7d5efa9
--- /dev/null
+++ b/server/internal/core/ports/unlocker.go
@@ -0,0 +1,7 @@
+package ports
+
+import "context"
+
+type Unlocker interface {
+	GetPassword(ctx context.Context) (string, error)
+}
diff --git a/server/internal/infrastructure/unlocker/file/service.go b/server/internal/infrastructure/unlocker/file/service.go
new file mode 100644
index 0000000..65cca84
--- /dev/null
+++ b/server/internal/infrastructure/unlocker/file/service.go
@@ -0,0 +1,37 @@
+package fileunlocker
+
+import (
+	"bytes"
+	"context"
+	"fmt"
+	"os"
+
+	"github.com/ark-network/ark/server/internal/core/ports"
+)
+
+type service struct {
+	filePath string
+}
+
+func NewService(filePath string) (ports.Unlocker, error) {
+	if _, err := os.Stat(filePath); err != nil {
+		if os.IsNotExist(err) {
+			return nil, fmt.Errorf("password file not found at path %s", filePath)
+		}
+		return nil, err
+	}
+	return &service{filePath: filePath}, nil
+}
+
+func (s *service) GetPassword(_ context.Context) (string, error) {
+	buf, err := os.ReadFile(s.filePath)
+	if err != nil {
+		return "", err
+	}
+
+	password := bytes.TrimFunc(buf, func(r rune) bool {
+		return r == 10 || r == 13 || r == 32
+	})
+
+	return string(password), nil
+}
diff --git a/server/internal/infrastructure/wallet/btc-embedded/wallet.go b/server/internal/infrastructure/wallet/btc-embedded/wallet.go
index 9d7c2fc..cea1923 100644
--- a/server/internal/infrastructure/wallet/btc-embedded/wallet.go
+++ b/server/internal/infrastructure/wallet/btc-embedded/wallet.go
@@ -304,6 +304,10 @@ func (s *service) Restore(_ context.Context, seed, password string) error {
 }
 
 func (s *service) Unlock(_ context.Context, password string) error {
+	if !s.walletInitialized() {
+		return fmt.Errorf("wallet not initialized")
+	}
+
 	if !s.walletLoaded() {
 		pwd := []byte(password)
 		opt := btcwallet.LoaderWithLocalWalletDB(s.cfg.Datadir, false, time.Minute)
diff --git a/server/internal/interface/grpc/service.go b/server/internal/interface/grpc/service.go
index fb7841d..2d15c6f 100644
--- a/server/internal/interface/grpc/service.go
+++ b/server/internal/interface/grpc/service.go
@@ -94,7 +94,13 @@ func NewService(
 
 func (s *service) Start() error {
 	withoutAppSvc := false
-	return s.start(withoutAppSvc)
+	if err := s.start(withoutAppSvc); err != nil {
+		return err
+	}
+	if s.appConfig.UnlockerService() != nil {
+		return s.autoUnlock()
+	}
+	return nil
 }
 
 func (s *service) Stop() {
@@ -314,6 +320,33 @@ func (s *service) onInit(password string) {
 	log.Debugf("generated macaroons at path %s", datadir)
 }
 
+func (s *service) autoUnlock() error {
+	ctx := context.Background()
+	wallet := s.appConfig.WalletService()
+
+	status, err := wallet.Status(ctx)
+	if err != nil {
+		return fmt.Errorf("failed to get wallet status: %s", err)
+	}
+	if !status.IsInitialized() {
+		log.Debug("wallet not initiialized, skipping auto unlock")
+		return nil
+	}
+
+	password, err := s.appConfig.UnlockerService().GetPassword(ctx)
+	if err != nil {
+		return fmt.Errorf("failed to get password: %s", err)
+	}
+	if err := wallet.Unlock(ctx, password); err != nil {
+		return fmt.Errorf("failed to auto unlock: %s", err)
+	}
+
+	go s.onUnlock(password)
+
+	log.Debug("service auto unlocked")
+	return nil
+}
+
 func router(
 	grpcServer *grpc.Server, grpcGateway http.Handler,
 ) http.Handler {