diff --git a/lightningd/channel/channel.c b/lightningd/channel/channel.c
index 862e66295..ff44385fd 100644
--- a/lightningd/channel/channel.c
+++ b/lightningd/channel/channel.c
@@ -1027,8 +1027,9 @@ static void init_channel(struct peer *peer, const u8 *msg)
 	struct pubkey funding_pubkey[NUM_SIDES];
 	struct sha256_double funding_txid;
 	bool am_funder;
+	u8 *funding_signed;
 
-	if (!fromwire_channel_init(msg, NULL,
+	if (!fromwire_channel_init(msg, msg, NULL,
 				   &funding_txid, &funding_txout,
 				   &peer->conf[LOCAL], &peer->conf[REMOTE],
 				   &peer->their_commit_sig,
@@ -1046,7 +1047,8 @@ static void init_channel(struct peer *peer, const u8 *msg)
 				   &peer->node_ids[LOCAL],
 				   &peer->node_ids[REMOTE],
 				   &peer->commit_msec,
-				   &peer->cltv_delta))
+				   &peer->cltv_delta,
+				   &funding_signed))
 		status_failed(WIRE_CHANNEL_BAD_COMMAND, "Init: %s",
 			      tal_hex(msg, msg));
 
@@ -1076,6 +1078,10 @@ static void init_channel(struct peer *peer, const u8 *msg)
 	/* OK, now we can process peer messages. */
 	peer->peer_conn = io_new_conn(peer, PEER_FD, setup_peer_conn, peer);
 	io_set_finish(peer->peer_conn, peer_conn_broken, peer);
+
+	/* If we have a funding_signed message, we send that immediately */
+	if (tal_len(funding_signed) != 0)
+		msg_enqueue(&peer->peer_out, take(funding_signed));
 }
 
 static void handle_funding_locked(struct peer *peer, const u8 *msg)
diff --git a/lightningd/channel/channel_wire.csv b/lightningd/channel/channel_wire.csv
index 319e5d61c..25d71a8de 100644
--- a/lightningd/channel/channel_wire.csv
+++ b/lightningd/channel/channel_wire.csv
@@ -40,6 +40,8 @@ channel_init,533,local_node_id,struct pubkey
 channel_init,566,remote_node_id,struct pubkey
 channel_init,599,commit_msec,4
 channel_init,603,cltv_delta,u16
+channel_init,605,init_peer_pkt_len,u16
+channel_init,607,init_peer_pkt,init_peer_pkt_len*u8
 
 # Tx is deep enough, go!
 channel_funding_locked,2
diff --git a/lightningd/opening/opening.c b/lightningd/opening/opening.c
index 68e3f3441..54daa3bb5 100644
--- a/lightningd/opening/opening.c
+++ b/lightningd/opening/opening.c
@@ -465,7 +465,7 @@ static u8 *fundee_channel(struct state *state,
 	secp256k1_ecdsa_signature theirsig, sig;
 	struct bitcoin_tx **txs;
 	struct sha256_double chain_hash;
-	u8 *msg, *encmsg;
+	u8 *msg;
 	const u8 **wscripts;
 
 	state->remoteconf = tal(state, struct channel_config);
@@ -648,10 +648,9 @@ static u8 *fundee_channel(struct state *state,
 		      &state->our_secrets.funding_privkey,
 		      our_funding_pubkey, &sig);
 
-	/* We don't send this ourselves: master does, because it needs to save
-	 * state to disk before doing so. */
+	/* We don't send this ourselves: channeld does, because master needs
+	 * to save state to disk before doing so. */
 	msg = towire_funding_signed(state, &channel_id, &sig);
-	encmsg = cryptomsg_encrypt_msg(state, &state->cs, msg);
 
 	return towire_opening_fundee_reply(state,
 					   state->remoteconf,
@@ -666,7 +665,7 @@ static u8 *fundee_channel(struct state *state,
 					   state->funding_txout,
 					   state->funding_satoshis,
 					   state->push_msat,
-					   encmsg);
+					   msg);
 }
 
 #ifndef TESTING
diff --git a/lightningd/peer_control.c b/lightningd/peer_control.c
index 638c4bd28..4138cf7b0 100644
--- a/lightningd/peer_control.c
+++ b/lightningd/peer_control.c
@@ -721,7 +721,8 @@ static enum watch_result funding_lockin_cb(struct peer *peer,
 }
 
 /* FIXME: Reshuffle. */
-static void peer_start_channeld(struct peer *peer, enum peer_state oldstate);
+static void peer_start_channeld(struct peer *peer, enum peer_state oldstate,
+				const u8 *funding_signed);
 
 static bool opening_got_hsm_funding_sig(struct subd *hsm, const u8 *resp,
 					const int *fds,
@@ -764,7 +765,7 @@ static bool opening_got_hsm_funding_sig(struct subd *hsm, const u8 *resp,
 	command_success(fc->cmd, null_response(fc->cmd));
 
 	/* Start normal channel daemon. */
-	peer_start_channeld(fc->peer, GETTING_SIG_FROM_HSM);
+	peer_start_channeld(fc->peer, GETTING_SIG_FROM_HSM, NULL);
 
 	tal_free(fc);
 	return true;
@@ -1542,7 +1543,11 @@ static bool peer_start_channeld_hsmfd(struct subd *hsm, const u8 *resp,
 				      &peer->ld->dstate.id,
 				      peer->id,
 				      time_to_msec(cfg->commit_time),
-				      cfg->deadline_blocks);
+				      cfg->deadline_blocks,
+				      peer->funding_signed);
+
+	/* Don't need this any more (we never re-transmit it) */
+	peer->funding_signed = tal_free(peer->funding_signed);
 
 	/* We don't expect a response: we are triggered by funding_depth_cb. */
 	subd_send_msg(peer->owner, take(initmsg));
@@ -1553,7 +1558,8 @@ static bool peer_start_channeld_hsmfd(struct subd *hsm, const u8 *resp,
 }
 
 /* opening is done, start lightningd_channel for peer. */
-static void peer_start_channeld(struct peer *peer, enum peer_state oldstate)
+static void peer_start_channeld(struct peer *peer, enum peer_state oldstate,
+				const u8 *funding_signed)
 {
 	/* Unowned: back to being owned by main daemon. */
 	peer->owner = NULL;
@@ -1568,6 +1574,9 @@ static void peer_start_channeld(struct peer *peer, enum peer_state oldstate)
 
 	peer_set_condition(peer, oldstate, GETTING_HSMFD);
 
+	/* Save this for when we get HSM fd. */
+	peer->funding_signed = funding_signed;
+
 	/* Get fd from hsm. */
 	subd_req(peer, peer->ld->hsm,
 		 take(towire_hsmctl_hsmfd_channeld(peer, peer->unique_id)),
@@ -1665,7 +1674,7 @@ static bool opening_fundee_finished(struct subd *opening,
 					   const int *fds,
 					   struct peer *peer)
 {
-	u8 *funding_msg_enc;
+	u8 *funding_signed;
 	struct channel_info *channel_info;
 
 	log_debug(peer->log, "Got opening_fundee_finish_response");
@@ -1677,7 +1686,7 @@ static bool opening_fundee_finished(struct subd *opening,
 	peer->channel_info = channel_info = tal(peer, struct channel_info);
 
 	peer->funding_txid = tal(peer, struct sha256_double);
-	if (!fromwire_opening_fundee_reply(reply, reply, NULL,
+	if (!fromwire_opening_fundee_reply(peer, reply, NULL,
 					   &channel_info->their_config,
 					   &channel_info->commit_sig,
 					   peer->cs,
@@ -1690,7 +1699,7 @@ static bool opening_fundee_finished(struct subd *opening,
 					   &peer->funding_outnum,
 					   &peer->funding_satoshi,
 					   &peer->push_msat,
-					   &funding_msg_enc)) {
+					   &funding_signed)) {
 		log_broken(peer->log, "bad OPENING_FUNDEE_REPLY %s",
 			   tal_hex(reply, reply));
 		return false;
@@ -1702,16 +1711,9 @@ static bool opening_fundee_finished(struct subd *opening,
 	watch_txid(peer, peer->ld->topology, peer, peer->funding_txid,
 		   funding_lockin_cb, NULL);
 
-	/* FIXME: Remove synchronous write! */
-	if (write(peer->fd, funding_msg_enc, tal_len(funding_msg_enc))
-	    != tal_len(funding_msg_enc)) {
-		log_broken(peer->log, "Could not write funding_signed msg");
-		return false;
-	}
-
 	/* On to normal operation! */
 	peer->owner = NULL;
-	peer_start_channeld(peer, OPENINGD);
+	peer_start_channeld(peer, OPENINGD, funding_signed);
 
 	/* Tell opening daemon to exit. */
 	return false;
diff --git a/lightningd/peer_control.h b/lightningd/peer_control.h
index 94a3288d9..dbbd4e256 100644
--- a/lightningd/peer_control.h
+++ b/lightningd/peer_control.h
@@ -51,6 +51,9 @@ struct peer {
 	/* Our channel config. */
 	struct channel_config our_config;
 
+	/* funding_signed packet for fundee, waiting to send. */
+	const u8 *funding_signed;
+
 	/* Channel if locked. */
 	struct short_channel_id *scid;