diff --git a/channeld/Makefile b/channeld/Makefile
index 4b660bb64..54b783856 100644
--- a/channeld/Makefile
+++ b/channeld/Makefile
@@ -40,7 +40,6 @@ CHANNELD_COMMON_OBJS :=				\
 	common/channel_config.o			\
 	common/channel_id.o			\
 	common/channel_type.o			\
-	common/crypto_state.o			\
 	common/cryptomsg.o			\
 	common/daemon.o				\
 	common/daemon_conn.o			\
diff --git a/closingd/Makefile b/closingd/Makefile
index d641d7857..c9fc0570c 100644
--- a/closingd/Makefile
+++ b/closingd/Makefile
@@ -26,7 +26,6 @@ CLOSINGD_COMMON_OBJS :=				\
 	common/bip32.o				\
 	common/channel_id.o			\
 	common/close_tx.o			\
-	common/crypto_state.o			\
 	common/cryptomsg.o			\
 	common/daemon.o				\
 	common/daemon_conn.o			\
diff --git a/common/Makefile b/common/Makefile
index d4f9ae8d3..9c8dbfe39 100644
--- a/common/Makefile
+++ b/common/Makefile
@@ -22,7 +22,6 @@ COMMON_SRC_NOGEN :=				\
 	common/close_tx.c			\
 	common/coin_mvt.c			\
 	common/configdir.c			\
-	common/crypto_state.c			\
 	common/cryptomsg.c			\
 	common/daemon.c				\
 	common/daemon_conn.c			\
@@ -97,6 +96,7 @@ COMMON_SRC_GEN := common/status_wiregen.c common/peer_status_wiregen.c
 
 COMMON_HEADERS_NOGEN := $(COMMON_SRC_NOGEN:.c=.h)	\
 	common/closing_fee.h				\
+	common/crypto_state.h				\
 	common/ecdh.h					\
 	common/errcode.h				\
 	common/gossip_constants.h			\
diff --git a/common/crypto_state.c b/common/crypto_state.c
deleted file mode 100644
index d592ddfd3..000000000
--- a/common/crypto_state.c
+++ /dev/null
@@ -1,23 +0,0 @@
-#include "config.h"
-#include <common/crypto_state.h>
-#include <wire/wire.h>
-
-void towire_crypto_state(u8 **ptr, const struct crypto_state *cs)
-{
-	towire_u64(ptr, cs->rn);
-	towire_u64(ptr, cs->sn);
-	towire_secret(ptr, &cs->sk);
-	towire_secret(ptr, &cs->rk);
-	towire_secret(ptr, &cs->s_ck);
-	towire_secret(ptr, &cs->r_ck);
-}
-
-void fromwire_crypto_state(const u8 **ptr, size_t *max, struct crypto_state *cs)
-{
-	cs->rn = fromwire_u64(ptr, max);
-	cs->sn = fromwire_u64(ptr, max);
-	fromwire_secret(ptr, max, &cs->sk);
-	fromwire_secret(ptr, max, &cs->rk);
-	fromwire_secret(ptr, max, &cs->s_ck);
-	fromwire_secret(ptr, max, &cs->r_ck);
-}
diff --git a/common/crypto_state.h b/common/crypto_state.h
index c2fa658c8..8a2674719 100644
--- a/common/crypto_state.h
+++ b/common/crypto_state.h
@@ -12,7 +12,4 @@ struct crypto_state {
 	struct secret s_ck, r_ck;
 };
 
-void towire_crypto_state(u8 **pptr, const struct crypto_state *cs);
-void fromwire_crypto_state(const u8 **ptr, size_t *max, struct crypto_state *cs);
-
 #endif /* LIGHTNING_COMMON_CRYPTO_STATE_H */
diff --git a/common/per_peer_state.c b/common/per_peer_state.c
index 18b2472ff..de11384e2 100644
--- a/common/per_peer_state.c
+++ b/common/per_peer_state.c
@@ -19,12 +19,10 @@ static void destroy_per_peer_state(struct per_peer_state *pps)
 		close(pps->gossip_store_fd);
 }
 
-struct per_peer_state *new_per_peer_state(const tal_t *ctx,
-					  const struct crypto_state *cs)
+struct per_peer_state *new_per_peer_state(const tal_t *ctx)
 {
 	struct per_peer_state *pps = tal(ctx, struct per_peer_state);
 
-	pps->cs = *cs;
 	pps->gs = NULL;
 	pps->peer_fd = pps->gossip_fd = pps->gossip_store_fd = -1;
 	pps->grf = new_gossip_rcvd_filter(pps);
@@ -69,7 +67,6 @@ void fromwire_gossip_state(const u8 **cursor, size_t *max,
 
 void towire_per_peer_state(u8 **pptr, const struct per_peer_state *pps)
 {
-	towire_crypto_state(pptr, &pps->cs);
 	towire_bool(pptr, pps->gs != NULL);
 	if (pps->gs)
 		towire_gossip_state(pptr, pps->gs);
@@ -89,11 +86,9 @@ void per_peer_state_fdpass_send(int fd, const struct per_peer_state *pps)
 struct per_peer_state *fromwire_per_peer_state(const tal_t *ctx,
 					       const u8 **cursor, size_t *max)
 {
-	struct crypto_state cs;
 	struct per_peer_state *pps;
 
-	fromwire_crypto_state(cursor, max, &cs);
-	pps = new_per_peer_state(ctx, &cs);
+	pps = new_per_peer_state(ctx);
 	if (fromwire_bool(cursor, max)) {
 		pps->gs = tal(pps, struct gossip_state);
 		fromwire_gossip_state(cursor, max, pps->gs);
diff --git a/common/per_peer_state.h b/common/per_peer_state.h
index 45bd1f172..e5e3b914c 100644
--- a/common/per_peer_state.h
+++ b/common/per_peer_state.h
@@ -15,9 +15,6 @@ struct gossip_state {
 
 /* Things we hand between daemons to talk to peers. */
 struct per_peer_state {
-	/* Cryptographic state needed to exchange messages with the peer (as
-	 * featured in BOLT #8) */
-	struct crypto_state cs;
 	/* NULL if it's not initialized yet */
 	struct gossip_state *gs;
 	/* Cache of msgs we have received, to avoid re-xmitting from store */
@@ -28,8 +25,7 @@ struct per_peer_state {
 
 /* Allocate a new per-peer state and add destructor to close fds if set;
  * sets fds to -1 and ->gs to NULL.. */
-struct per_peer_state *new_per_peer_state(const tal_t *ctx,
-					  const struct crypto_state *cs);
+struct per_peer_state *new_per_peer_state(const tal_t *ctx);
 
 /* Initialize the fds (must be -1 previous) */
 void per_peer_state_set_fds(struct per_peer_state *pps,
diff --git a/connectd/Makefile b/connectd/Makefile
index 343a3624c..a6de25985 100644
--- a/connectd/Makefile
+++ b/connectd/Makefile
@@ -42,7 +42,6 @@ CONNECTD_COMMON_OBJS :=				\
 	common/bigsize.o			\
 	common/bip32.o				\
 	common/channel_id.o			\
-	common/crypto_state.o			\
 	common/cryptomsg.o			\
 	common/daemon.o				\
 	common/daemon_conn.o			\
diff --git a/connectd/connectd.c b/connectd/connectd.c
index 2dc053923..fdbdefa26 100644
--- a/connectd/connectd.c
+++ b/connectd/connectd.c
@@ -448,7 +448,7 @@ static struct peer *new_peer(struct daemon *daemon,
 	struct peer *peer = tal(daemon, struct peer);
 
 	peer->id = *id;
-	peer->pps = new_per_peer_state(peer, cs);
+	peer->cs = *cs;
 	peer->final_msg = NULL;
 	peer->subd_in = NULL;
 	peer->peer_in = NULL;
@@ -461,12 +461,6 @@ static struct peer *new_peer(struct daemon *daemon,
 	if (!multiplex_subd_setup(peer, fd_for_subd))
 		return tal_free(peer);
 
-	/* If gossipd can't give us a file descriptor, we give up connecting. */
-	if (!get_gossipfds(daemon, id, their_features, peer->pps)) {
-		close(*fd_for_subd);
-		return tal_free(peer);
-	}
-
 	peer->to_peer = tal_steal(peer, conn);
 	peer_htable_add(&daemon->peers, peer);
 	tal_add_destructor2(peer, destroy_peer, daemon);
@@ -488,6 +482,7 @@ struct io_plan *peer_connected(struct io_conn *conn,
 	int unsup;
 	size_t depender, missing;
 	int subd_fd;
+	struct per_peer_state *pps;
 
 	peer = peer_htable_get(&daemon->peers, id);
 	if (peer)
@@ -545,20 +540,28 @@ struct io_plan *peer_connected(struct io_conn *conn,
 	if (!peer)
 		return io_close(conn);
 
+	pps = new_per_peer_state(tmpctx);
+
+	/* If gossipd can't give us a file descriptor, we give up connecting. */
+	if (!get_gossipfds(daemon, id, their_features, pps)) {
+		close(subd_fd);
+		return tal_free(peer);
+	}
+
 	/* Create message to tell master peer has connected. */
 	msg = towire_connectd_peer_connected(NULL, id, addr, incoming,
-					     peer->pps, their_features);
+					     pps, their_features);
 
 	/*~ daemon_conn is a message queue for inter-daemon communication: we
 	 * queue up the `connect_peer_connected` message to tell lightningd
 	 * we have connected, and give the peer and gossip fds. */
 	daemon_conn_send(daemon->master, take(msg));
 	daemon_conn_send_fd(daemon->master, subd_fd);
-	daemon_conn_send_fd(daemon->master, peer->pps->gossip_fd);
-	daemon_conn_send_fd(daemon->master, peer->pps->gossip_store_fd);
+	daemon_conn_send_fd(daemon->master, pps->gossip_fd);
+	daemon_conn_send_fd(daemon->master, pps->gossip_store_fd);
 
 	/* Don't try to close these on freeing. */
-	peer->pps->gossip_store_fd = peer->pps->gossip_fd = -1;
+	pps->gossip_store_fd = pps->gossip_fd = -1;
 
 	/*~ Now we set up this connection to read/write from subd */
 	return multiplex_peer_setup(conn, peer);
diff --git a/connectd/multiplex.c b/connectd/multiplex.c
index fd7668b3b..349f76111 100644
--- a/connectd/multiplex.c
+++ b/connectd/multiplex.c
@@ -39,7 +39,7 @@ static struct io_plan *encrypt_and_send(struct peer *peer,
 					 struct peer *peer))
 {
 	/* We free this and the encrypted version in next write_to_peer */
-	peer->sent_to_peer = cryptomsg_encrypt_msg(peer, &peer->pps->cs, msg);
+	peer->sent_to_peer = cryptomsg_encrypt_msg(peer, &peer->cs, msg);
 	return io_write(peer->to_peer,
 			peer->sent_to_peer,
 			tal_bytelen(peer->sent_to_peer),
@@ -127,7 +127,7 @@ static struct io_plan *read_body_from_peer_done(struct io_conn *peer_conn,
 {
        u8 *decrypted;
 
-       decrypted = cryptomsg_decrypt_body(NULL, &peer->pps->cs,
+       decrypted = cryptomsg_decrypt_body(NULL, &peer->cs,
 					  peer->peer_in);
        if (!decrypted)
                return io_close(peer_conn);
@@ -145,7 +145,7 @@ static struct io_plan *read_body_from_peer(struct io_conn *peer_conn,
 {
        u16 len;
 
-       if (!cryptomsg_decrypt_header(&peer->pps->cs, peer->peer_in, &len))
+       if (!cryptomsg_decrypt_header(&peer->cs, peer->peer_in, &len))
                return io_close(peer_conn);
 
        tal_resize(&peer->peer_in, (u32)len + CRYPTOMSG_BODY_OVERHEAD);
diff --git a/connectd/multiplex.h b/connectd/multiplex.h
index e96982bf8..12ccfa082 100644
--- a/connectd/multiplex.h
+++ b/connectd/multiplex.h
@@ -2,12 +2,14 @@
 #define LIGHTNING_CONNECTD_MULTIPLEX_H
 #include "config.h"
 #include <ccan/short_types/short_types.h>
+#include <common/crypto_state.h>
 #include <common/msg_queue.h>
 #include <common/node_id.h>
 
 struct peer {
 	struct node_id id;
-	struct per_peer_state *pps;
+	/* Counters and keys for symmetric crypto */
+	struct crypto_state cs;
 
 	/* Connection to the peer */
 	struct io_conn *to_peer;
diff --git a/devtools/Makefile b/devtools/Makefile
index e61f928f1..5498db468 100644
--- a/devtools/Makefile
+++ b/devtools/Makefile
@@ -21,7 +21,6 @@ DEVTOOLS_COMMON_OBJS :=				\
 	common/bolt11.o				\
 	common/blockheight_states.o		\
 	common/channel_id.o			\
-	common/crypto_state.o			\
 	common/decode_array.o			\
 	common/features.o			\
 	common/fee_states.o			\
diff --git a/gossipd/Makefile b/gossipd/Makefile
index f31acfe92..13c8eada0 100644
--- a/gossipd/Makefile
+++ b/gossipd/Makefile
@@ -37,7 +37,6 @@ GOSSIPD_COMMON_OBJS :=				\
 	common/blinding.o			\
 	common/blindedpath.o			\
 	common/channel_id.o			\
-	common/crypto_state.o			\
 	common/cryptomsg.o			\
 	common/daemon.o				\
 	common/daemon_conn.o			\
diff --git a/lightningd/Makefile b/lightningd/Makefile
index 2cdb6b0d0..24c57250a 100644
--- a/lightningd/Makefile
+++ b/lightningd/Makefile
@@ -81,7 +81,6 @@ LIGHTNINGD_COMMON_OBJS :=			\
 	common/channel_type.o			\
 	common/coin_mvt.o			\
 	common/configdir.o			\
-	common/crypto_state.o			\
 	common/daemon.o				\
 	common/derive_basepoints.o		\
 	common/ecdh_hsmd.o			\
diff --git a/openingd/Makefile b/openingd/Makefile
index 0ff843e47..6cbf12546 100644
--- a/openingd/Makefile
+++ b/openingd/Makefile
@@ -41,7 +41,6 @@ OPENINGD_COMMON_OBJS :=				\
 	common/channel_config.o			\
 	common/channel_id.o			\
 	common/channel_type.o			\
-	common/crypto_state.o			\
 	common/cryptomsg.o			\
 	common/daemon.o				\
 	common/daemon_conn.o			\