diff --git a/apps/smp-agent/Main.hs b/apps/smp-agent/Main.hs
index df918fe5c..e5f33a219 100644
--- a/apps/smp-agent/Main.hs
+++ b/apps/smp-agent/Main.hs
@@ -1,7 +1,10 @@
+{-# LANGUAGE DuplicateRecordFields #-}
+
 module Main where
 
 import Simplex.Messaging.Agent (runSMPAgent)
 import Simplex.Messaging.Agent.Env.SQLite
+import Simplex.Messaging.Agent.ServerClient
 
 cfg :: AgentConfig
 cfg =
@@ -9,10 +12,16 @@ cfg =
     { tcpPort = "5224",
       tbqSize = 16,
       connIdBytes = 12,
-      dbFile = "smp-agent.db"
+      dbFile = "smp-agent.db",
+      smpConfig =
+        ServerClientConfig
+          { tcpPort = "5223",
+            tbqSize = 16,
+            corrIdBytes = 4
+          }
     }
 
 main :: IO ()
 main = do
-  putStrLn $ "SMP agent listening on port " ++ tcpPort cfg
+  putStrLn $ "SMP agent listening on port " ++ tcpPort (cfg :: AgentConfig)
   runSMPAgent cfg
diff --git a/src/Simplex/Messaging/Agent.hs b/src/Simplex/Messaging/Agent.hs
index 80bea40bf..9e8158423 100644
--- a/src/Simplex/Messaging/Agent.hs
+++ b/src/Simplex/Messaging/Agent.hs
@@ -1,6 +1,7 @@
 {-# LANGUAGE DataKinds #-}
 {-# LANGUAGE DuplicateRecordFields #-}
 {-# LANGUAGE FlexibleContexts #-}
+{-# LANGUAGE GADTs #-}
 {-# LANGUAGE LambdaCase #-}
 {-# LANGUAGE NamedFieldPuns #-}
 {-# LANGUAGE OverloadedStrings #-}
@@ -12,9 +13,13 @@ import Control.Monad.IO.Unlift
 import Control.Monad.Reader
 import Crypto.Random
 import qualified Data.ByteString.Char8 as B
+import qualified Data.Map as M
 import Simplex.Messaging.Agent.Env.SQLite
+import Simplex.Messaging.Agent.ServerClient (ServerClient (..), newServerClient)
 import Simplex.Messaging.Agent.Transmission
-import Simplex.Messaging.Server.Transmission (CorrId (..))
+import Simplex.Messaging.Server (randomBytes)
+import Simplex.Messaging.Server.Transmission (Cmd (..), CorrId (..), SParty (..))
+import qualified Simplex.Messaging.Server.Transmission as SMP
 import Simplex.Messaging.Transport
 import UnliftIO.Async
 import UnliftIO.IO
@@ -35,7 +40,7 @@ runSMPAgent cfg@AgentConfig {tcpPort} = do
 connectClient :: MonadUnliftIO m => Handle -> AgentClient -> m ()
 connectClient h c = race_ (send h c) (receive h c)
 
-runClient :: MonadUnliftIO m => AgentClient -> m ()
+runClient :: (MonadUnliftIO m, MonadReader Env m) => AgentClient -> m ()
 runClient c = race_ (processSmp c) (client c)
 
 receive :: MonadUnliftIO m => Handle -> AgentClient -> m ()
@@ -48,17 +53,48 @@ receive h AgentClient {rcvQ, sndQ} =
 send :: MonadUnliftIO m => Handle -> AgentClient -> m ()
 send h AgentClient {sndQ} = forever $ atomically (readTBQueue sndQ) >>= tPut h
 
-client :: forall m. MonadUnliftIO m => AgentClient -> m ()
-client AgentClient {rcvQ, sndQ} = forever $ do
-  (corrId, cAlias, cmd) <- atomically (readTBQueue rcvQ)
-  processCommand cmd >>= \case
+client :: forall m. (MonadUnliftIO m, MonadReader Env m) => AgentClient -> m ()
+client AgentClient {rcvQ, sndQ, respQ, commands} = forever $ do
+  t@(corrId, cAlias, cmd) <- atomically $ readTBQueue rcvQ
+  processCommand t cmd >>= \case
     Left e -> atomically $ writeTBQueue sndQ (corrId, cAlias, ERR e)
     Right _ -> return ()
   where
-    processCommand :: ACommand 'Client -> m (Either ErrorType ())
-    processCommand _ = return $ Left PROHIBITED
+    processCommand :: ATransmission 'Client -> ACommand 'Client -> m (Either ErrorType ())
+    processCommand t = \case
+      NEW SMPServer {host, port, keyHash} (AckMode mode) -> do
+        cfg <- asks $ smpConfig . config
+        srv <- newServerClient cfg respQ host port
+        t <- mkSmpNEW t
+        atomically $ writeTBQueue (smpSndQ srv) t
+        liftIO $ putStrLn "sending NEW to server"
+        liftIO $ print t
+        return $ Right ()
+      _ -> return $ Left PROHIBITED
+
+    mkSmpNEW :: ATransmission 'Client -> m SMP.Transmission
+    mkSmpNEW t = do
+      g <- asks idsDrg
+      smpCorrId <- atomically $ CorrId <$> randomBytes 4 g
+      recipientKey <- atomically $ randomBytes 16 g -- TODO replace with cryptographic key pair
+      let recipientPrivateKey = recipientKey
+          toSMP = ("", (smpCorrId, "", Cmd SRecipient $ SMP.NEW recipientKey))
+          req =
+            Request
+              { fromClient = t,
+                toSMP,
+                state = NEWRequestState {recipientKey, recipientPrivateKey}
+              }
+      atomically . modifyTVar commands $ M.insert smpCorrId req
+      return toSMP
 
 processSmp :: MonadUnliftIO m => AgentClient -> m ()
-processSmp AgentClient {respQ, sndQ} = forever . atomically $ do
-  readTBQueue respQ
-  writeTBQueue sndQ (CorrId B.empty, B.empty, ERR UNKNOWN)
+processSmp AgentClient {respQ, sndQ, commands} = forever $ do
+  (_, (smpCorrId, qId, cmdOrErr)) <- atomically $ readTBQueue respQ
+  liftIO $ putStrLn "received from server"
+  liftIO $ print (smpCorrId, qId, cmdOrErr)
+  req <- atomically $ M.lookup smpCorrId <$> readTVar commands
+  atomically $ case req of -- TODO empty correlation ID is ok - it can be a message
+    Nothing -> writeTBQueue sndQ ("", "", ERR $ SMP smpErrCorrelationId)
+    Just Request {fromClient = (corrId, cAlias, cmd), toSMP, state} -> do
+      writeTBQueue sndQ (corrId, cAlias, ERR UNKNOWN)
diff --git a/src/Simplex/Messaging/Agent/Env/SQLite.hs b/src/Simplex/Messaging/Agent/Env/SQLite.hs
index cbe906902..c684add8f 100644
--- a/src/Simplex/Messaging/Agent/Env/SQLite.hs
+++ b/src/Simplex/Messaging/Agent/Env/SQLite.hs
@@ -12,8 +12,11 @@ import qualified Data.Map.Strict as M
 import qualified Database.SQLite.Simple as DB
 import Network.Socket (HostName, ServiceName)
 import Numeric.Natural
+import Simplex.Messaging.Agent.ServerClient
+import Simplex.Messaging.Agent.Store
 import Simplex.Messaging.Agent.Store.SQLite.Schema
 import Simplex.Messaging.Agent.Transmission
+import Simplex.Messaging.Server.Transmission (PublicKey)
 import qualified Simplex.Messaging.Server.Transmission as SMP
 import UnliftIO.STM
 
@@ -21,7 +24,8 @@ data AgentConfig = AgentConfig
   { tcpPort :: ServiceName,
     tbqSize :: Natural,
     connIdBytes :: Int,
-    dbFile :: String
+    dbFile :: String,
+    smpConfig :: ServerClientConfig
   }
 
 data Env = Env
@@ -33,13 +37,20 @@ data Env = Env
 data AgentClient = AgentClient
   { rcvQ :: TBQueue (ATransmission Client),
     sndQ :: TBQueue (ATransmission Agent),
-    respQ :: TBQueue (),
-    servers :: Map (HostName, ServiceName) ServerClient
+    respQ :: TBQueue SMP.TransmissionOrError,
+    servers :: TVar (Map (HostName, ServiceName) ServerClient),
+    commands :: TVar (Map SMP.CorrId Request)
   }
 
-data ServerClient = ServerClient
-  { sndQ :: TBQueue SMP.Transmission,
-    commands :: Map SMP.QueueId (TBQueue SMP.Cmd)
+data Request = Request
+  { fromClient :: ATransmission Client,
+    toSMP :: SMP.Transmission,
+    state :: RequestState
+  }
+
+data RequestState = NEWRequestState
+  { recipientKey :: PublicKey,
+    recipientPrivateKey :: PrivateKey
   }
 
 newAgentClient :: Natural -> STM AgentClient
@@ -47,12 +58,9 @@ newAgentClient qSize = do
   rcvQ <- newTBQueue qSize
   sndQ <- newTBQueue qSize
   respQ <- newTBQueue qSize
-  return AgentClient {rcvQ, sndQ, respQ, servers = M.empty}
-
-newServerClient :: Natural -> STM ServerClient
-newServerClient qSize = do
-  sndQ <- newTBQueue qSize
-  return ServerClient {sndQ, commands = M.empty}
+  servers <- newTVar M.empty
+  commands <- newTVar M.empty
+  return AgentClient {rcvQ, sndQ, respQ, servers, commands}
 
 openDB :: MonadUnliftIO m => AgentConfig -> m DB.Connection
 openDB AgentConfig {dbFile} = liftIO $ do
diff --git a/src/Simplex/Messaging/Agent/ServerClient.hs b/src/Simplex/Messaging/Agent/ServerClient.hs
new file mode 100644
index 000000000..872c2c46e
--- /dev/null
+++ b/src/Simplex/Messaging/Agent/ServerClient.hs
@@ -0,0 +1,54 @@
+{-# LANGUAGE NamedFieldPuns #-}
+{-# LANGUAGE ScopedTypeVariables #-}
+
+module Simplex.Messaging.Agent.ServerClient where
+
+import Control.Monad.IO.Unlift
+import Data.Maybe
+import Network.Socket (HostName, ServiceName)
+import Numeric.Natural
+import Simplex.Messaging.Agent.Store
+import qualified Simplex.Messaging.Server.Transmission as SMP
+import Simplex.Messaging.Transport
+import UnliftIO.Async
+import UnliftIO.IO
+import UnliftIO.STM
+
+data ServerClientConfig = ServerClientConfig
+  { tcpPort :: ServiceName,
+    tbqSize :: Natural,
+    corrIdBytes :: Natural
+  }
+
+data ServerClient = ServerClient
+  { smpSndQ :: TBQueue SMP.Transmission,
+    smpRcvQ :: TBQueue SMP.TransmissionOrError
+    -- srvA :: Async ()
+  }
+
+newServerClient ::
+  forall m.
+  MonadUnliftIO m =>
+  ServerClientConfig ->
+  TBQueue SMP.TransmissionOrError ->
+  HostName ->
+  Maybe ServiceName ->
+  m ServerClient
+newServerClient cfg smpRcvQ host port = do
+  smpSndQ <- atomically . newTBQueue $ tbqSize cfg
+  let c = ServerClient {smpSndQ, smpRcvQ}
+  _srvA <- async $ runClient (fromMaybe (tcpPort cfg) port) c
+  return c
+  where
+    runClient :: ServiceName -> ServerClient -> m ()
+    runClient p c =
+      runTCPClient host p $ \h -> do
+        _line <- getLn h -- "Welcome to SMP"
+        -- TODO test connection failure
+        race_ (send h c) (receive h)
+
+    send :: Handle -> ServerClient -> m ()
+    send h ServerClient {smpSndQ} = atomically (readTBQueue smpSndQ) >>= SMP.tPut h
+
+    receive :: Handle -> m ()
+    receive h = SMP.tGet SMP.fromServer h >>= atomically . writeTBQueue smpRcvQ
diff --git a/src/Simplex/Messaging/Agent/Transmission.hs b/src/Simplex/Messaging/Agent/Transmission.hs
index 9a2b611dd..84dcb226a 100644
--- a/src/Simplex/Messaging/Agent/Transmission.hs
+++ b/src/Simplex/Messaging/Agent/Transmission.hs
@@ -1,5 +1,4 @@
 {-# LANGUAGE DataKinds #-}
-{-# LANGUAGE DeriveAnyClass #-}
 {-# LANGUAGE GADTs #-}
 {-# LANGUAGE LambdaCase #-}
 {-# LANGUAGE OverloadedStrings #-}
@@ -23,6 +22,7 @@ import Data.Time.Clock (UTCTime)
 import Data.Type.Equality
 import Data.Typeable ()
 import Network.Socket
+import Numeric.Natural
 import Simplex.Messaging.Server.Transmission (CorrId (..), Encoded, MsgBody, PublicKey, QueueId, errBadParameters, errMessageBody)
 import Simplex.Messaging.Transport
 import System.IO
@@ -123,7 +123,7 @@ data MsgStatus = MsgOk | MsgError MsgErrorType
 data MsgErrorType = MsgSkipped AgentMsgId AgentMsgId | MsgBadId AgentMsgId | MsgBadHash
   deriving (Show)
 
-data ErrorType = UNKNOWN | PROHIBITED | SYNTAX Int | SIZE -- etc. TODO SYNTAX Natural
+data ErrorType = UNKNOWN | PROHIBITED | SYNTAX Int | SMP Natural | SIZE -- etc. TODO SYNTAX Natural
   deriving (Show)
 
 data AckStatus = AckOk | AckError AckErrorType
@@ -138,6 +138,9 @@ errBadInvitation = 10
 errNoConnAlias :: Int
 errNoConnAlias = 11
 
+smpErrCorrelationId :: Natural
+smpErrCorrelationId = 1
+
 parseCommand :: ByteString -> Either ErrorType ACmd
 parseCommand command = case B.words command of
   ["NEW", srv] -> newConn srv . Right $ AckMode On
diff --git a/src/Simplex/Messaging/Server.hs b/src/Simplex/Messaging/Server.hs
index 2f7b07988..433f673fa 100644
--- a/src/Simplex/Messaging/Server.hs
+++ b/src/Simplex/Messaging/Server.hs
@@ -10,7 +10,8 @@
 {-# LANGUAGE ScopedTypeVariables #-}
 {-# LANGUAGE TupleSections #-}
 
-module Simplex.Messaging.Server (runSMPServer) where
+-- TODO move randomBytes to another module
+module Simplex.Messaging.Server (runSMPServer, randomBytes) where
 
 import Control.Concurrent.STM (stateTVar)
 import Control.Monad
diff --git a/src/Simplex/Messaging/Server/Transmission.hs b/src/Simplex/Messaging/Server/Transmission.hs
index 74d5fdeba..1222b08c8 100644
--- a/src/Simplex/Messaging/Server/Transmission.hs
+++ b/src/Simplex/Messaging/Server/Transmission.hs
@@ -145,7 +145,7 @@ serializeCommand = \case
 type Encoded = ByteString
 
 -- newtype to avoid accidentally changing order of transmission parts
-newtype CorrId = CorrId {bs :: ByteString} deriving (Eq, Show)
+newtype CorrId = CorrId {bs :: ByteString} deriving (Eq, Ord, Show)
 
 instance IsString CorrId where
   fromString = CorrId . fromString