diff --git a/src/builder.rs b/src/builder.rs
index e48af2cf3..a44a05f0c 100644
--- a/src/builder.rs
+++ b/src/builder.rs
@@ -6,6 +6,7 @@ use crate::io::sqlite_store::SqliteStore;
 use crate::logger::{log_error, FilesystemLogger, Logger};
 use crate::payment_store::PaymentStore;
 use crate::peer_store::PeerStore;
+use crate::sweep::OutputSweeper;
 use crate::tx_broadcaster::TransactionBroadcaster;
 use crate::types::{
 	ChainMonitor, ChannelManager, FakeMessageRouter, GossipSync, KeysManager, NetworkGraph,
@@ -777,6 +778,25 @@ fn build_with_store_internal<K: KVStore + Sync + Send + 'static>(
 		}
 	};
 
+	let best_block = channel_manager.current_best_block();
+	let output_sweeper =
+		match io::utils::read_spendable_outputs(Arc::clone(&kv_store), Arc::clone(&logger)) {
+			Ok(outputs) => Arc::new(OutputSweeper::new(
+				outputs,
+				Arc::clone(&wallet),
+				Arc::clone(&tx_broadcaster),
+				Arc::clone(&fee_estimator),
+				Arc::clone(&keys_manager),
+				Arc::clone(&kv_store),
+				best_block,
+				Some(Arc::clone(&tx_sync)),
+				Arc::clone(&logger),
+			)),
+			Err(_) => {
+				return Err(BuildError::ReadFailed);
+			}
+		};
+
 	let (stop_sender, stop_receiver) = tokio::sync::watch::channel(());
 
 	Ok(Node {
@@ -791,6 +811,7 @@ fn build_with_store_internal<K: KVStore + Sync + Send + 'static>(
 		event_queue,
 		channel_manager,
 		chain_monitor,
+		output_sweeper,
 		peer_manager,
 		keys_manager,
 		network_graph,
diff --git a/src/event.rs b/src/event.rs
index 32da8d068..3d7e4599b 100644
--- a/src/event.rs
+++ b/src/event.rs
@@ -1,7 +1,6 @@
-use crate::types::{Broadcaster, FeeEstimator, Wallet};
+use crate::types::{Sweeper, Wallet};
 use crate::{
-	hex_utils, ChannelManager, Config, Error, KeysManager, NetworkGraph, PeerInfo, PeerStore,
-	UserChannelId,
+	hex_utils, ChannelManager, Config, Error, NetworkGraph, PeerInfo, PeerStore, UserChannelId,
 };
 
 use crate::payment_store::{
@@ -12,11 +11,9 @@ use crate::io::{
 	EVENT_QUEUE_PERSISTENCE_KEY, EVENT_QUEUE_PERSISTENCE_PRIMARY_NAMESPACE,
 	EVENT_QUEUE_PERSISTENCE_SECONDARY_NAMESPACE,
 };
-use crate::logger::{log_debug, log_error, log_info, Logger};
+use crate::logger::{log_error, log_info, Logger};
 
-use lightning::chain::chaininterface::{
-	BroadcasterInterface, ConfirmationTarget, FeeEstimator as LDKFeeEstimator,
-};
+use lightning::chain::chaininterface::ConfirmationTarget;
 use lightning::events::Event as LdkEvent;
 use lightning::events::PaymentPurpose;
 use lightning::impl_writeable_tlv_based_enum;
@@ -26,8 +23,8 @@ use lightning::util::errors::APIError;
 use lightning::util::persist::KVStore;
 use lightning::util::ser::{Readable, ReadableArgs, Writeable, Writer};
 
-use bitcoin::secp256k1::{PublicKey, Secp256k1};
-use bitcoin::{LockTime, OutPoint, PackedLockTime};
+use bitcoin::secp256k1::PublicKey;
+use bitcoin::{LockTime, OutPoint};
 use rand::{thread_rng, Rng};
 use std::collections::VecDeque;
 use std::ops::Deref;
@@ -249,10 +246,8 @@ where
 	event_queue: Arc<EventQueue<K, L>>,
 	wallet: Arc<Wallet>,
 	channel_manager: Arc<ChannelManager<K>>,
-	tx_broadcaster: Arc<Broadcaster>,
-	fee_estimator: Arc<FeeEstimator>,
+	output_sweeper: Arc<Sweeper<K>>,
 	network_graph: Arc<NetworkGraph>,
-	keys_manager: Arc<KeysManager>,
 	payment_store: Arc<PaymentStore<K, L>>,
 	peer_store: Arc<PeerStore<K, L>>,
 	runtime: Arc<RwLock<Option<tokio::runtime::Runtime>>>,
@@ -266,9 +261,8 @@ where
 {
 	pub fn new(
 		event_queue: Arc<EventQueue<K, L>>, wallet: Arc<Wallet>,
-		channel_manager: Arc<ChannelManager<K>>, tx_broadcaster: Arc<Broadcaster>,
-		fee_estimator: Arc<FeeEstimator>, network_graph: Arc<NetworkGraph>,
-		keys_manager: Arc<KeysManager>, payment_store: Arc<PaymentStore<K, L>>,
+		channel_manager: Arc<ChannelManager<K>>, output_sweeper: Arc<Sweeper<K>>,
+		network_graph: Arc<NetworkGraph>, payment_store: Arc<PaymentStore<K, L>>,
 		peer_store: Arc<PeerStore<K, L>>, runtime: Arc<RwLock<Option<tokio::runtime::Runtime>>>,
 		logger: L, config: Arc<Config>,
 	) -> Self {
@@ -276,10 +270,8 @@ where
 			event_queue,
 			wallet,
 			channel_manager,
-			tx_broadcaster,
-			fee_estimator,
+			output_sweeper,
 			network_graph,
-			keys_manager,
 			payment_store,
 			peer_store,
 			logger,
@@ -585,37 +577,8 @@ where
 					});
 				}
 			}
-			LdkEvent::SpendableOutputs { outputs, channel_id: _ } => {
-				// TODO: We should eventually remember the outputs and supply them to the wallet's coin selection, once BDK allows us to do so.
-				let destination_address = self.wallet.get_new_address().unwrap_or_else(|e| {
-					log_error!(self.logger, "Failed to get destination address: {}", e);
-					panic!("Failed to get destination address");
-				});
-
-				let output_descriptors = &outputs.iter().collect::<Vec<_>>();
-				let tx_feerate = self
-					.fee_estimator
-					.get_est_sat_per_1000_weight(ConfirmationTarget::NonAnchorChannelFee);
-
-				// We set nLockTime to the current height to discourage fee sniping.
-				let cur_height = self.channel_manager.current_best_block().height();
-				let locktime: PackedLockTime =
-					LockTime::from_height(cur_height).map_or(PackedLockTime::ZERO, |l| l.into());
-				let res = self.keys_manager.spend_spendable_outputs(
-					output_descriptors,
-					Vec::new(),
-					destination_address.script_pubkey(),
-					tx_feerate,
-					Some(locktime),
-					&Secp256k1::new(),
-				);
-
-				match res {
-					Ok(spending_tx) => self.tx_broadcaster.broadcast_transactions(&[&spending_tx]),
-					Err(err) => {
-						log_error!(self.logger, "Error spending outputs: {:?}", err);
-					}
-				}
+			LdkEvent::SpendableOutputs { outputs, channel_id } => {
+				self.output_sweeper.add_outputs(outputs, channel_id)
 			}
 			LdkEvent::OpenChannelRequest {
 				temporary_channel_id,
diff --git a/src/lib.rs b/src/lib.rs
index f73506c4e..0ffd7d062 100644
--- a/src/lib.rs
+++ b/src/lib.rs
@@ -123,7 +123,7 @@ pub use payment_store::{PaymentDetails, PaymentDirection, PaymentStatus};
 use peer_store::{PeerInfo, PeerStore};
 use types::{
 	Broadcaster, ChainMonitor, ChannelManager, FeeEstimator, KeysManager, NetworkGraph,
-	PeerManager, Router, Scorer, Wallet,
+	PeerManager, Router, Scorer, Sweeper, Wallet,
 };
 pub use types::{ChannelDetails, PeerDetails, UserChannelId};
 
@@ -296,6 +296,7 @@ pub struct Node<K: KVStore + Sync + Send + 'static> {
 	event_queue: Arc<EventQueue<K, Arc<FilesystemLogger>>>,
 	channel_manager: Arc<ChannelManager<K>>,
 	chain_monitor: Arc<ChainMonitor<K>>,
+	output_sweeper: Arc<Sweeper<K>>,
 	peer_manager: Arc<PeerManager<K>>,
 	keys_manager: Arc<KeysManager>,
 	network_graph: Arc<NetworkGraph>,
@@ -433,6 +434,7 @@ impl<K: KVStore + Sync + Send + 'static> Node<K> {
 		let tx_sync = Arc::clone(&self.tx_sync);
 		let sync_cman = Arc::clone(&self.channel_manager);
 		let sync_cmon = Arc::clone(&self.chain_monitor);
+		let sync_sweeper = Arc::clone(&self.output_sweeper);
 		let sync_logger = Arc::clone(&self.logger);
 		let mut stop_sync = self.stop_receiver.clone();
 		let wallet_sync_interval_secs =
@@ -450,6 +452,7 @@ impl<K: KVStore + Sync + Send + 'static> Node<K> {
 						let confirmables = vec![
 							&*sync_cman as &(dyn Confirm + Sync + Send),
 							&*sync_cmon as &(dyn Confirm + Sync + Send),
+							&*sync_sweeper as &(dyn Confirm + Sync + Send),
 						];
 						let now = Instant::now();
 						match tx_sync.sync(confirmables).await {
@@ -696,10 +699,8 @@ impl<K: KVStore + Sync + Send + 'static> Node<K> {
 			Arc::clone(&self.event_queue),
 			Arc::clone(&self.wallet),
 			Arc::clone(&self.channel_manager),
-			Arc::clone(&self.tx_broadcaster),
-			Arc::clone(&self.fee_estimator),
+			Arc::clone(&self.output_sweeper),
 			Arc::clone(&self.network_graph),
-			Arc::clone(&self.keys_manager),
 			Arc::clone(&self.payment_store),
 			Arc::clone(&self.peer_store),
 			Arc::clone(&self.runtime),
@@ -1037,10 +1038,12 @@ impl<K: KVStore + Sync + Send + 'static> Node<K> {
 		let tx_sync = Arc::clone(&self.tx_sync);
 		let sync_cman = Arc::clone(&self.channel_manager);
 		let sync_cmon = Arc::clone(&self.chain_monitor);
+		let sync_sweeper = Arc::clone(&self.output_sweeper);
 		let sync_logger = Arc::clone(&self.logger);
 		let confirmables = vec![
 			&*sync_cman as &(dyn Confirm + Sync + Send),
 			&*sync_cmon as &(dyn Confirm + Sync + Send),
+			&*sync_sweeper as &(dyn Confirm + Sync + Send),
 		];
 
 		tokio::task::block_in_place(move || {
diff --git a/src/types.rs b/src/types.rs
index ead397a75..4edba65c3 100644
--- a/src/types.rs
+++ b/src/types.rs
@@ -1,4 +1,5 @@
 use crate::logger::FilesystemLogger;
+use crate::sweep::OutputSweeper;
 
 use lightning::chain::chainmonitor;
 use lightning::ln::channelmanager::ChannelDetails as LdkChannelDetails;
@@ -118,6 +119,14 @@ impl lightning::onion_message::MessageRouter for FakeMessageRouter {
 	}
 }
 
+pub(crate) type Sweeper<K> = OutputSweeper<
+	Arc<Broadcaster>,
+	Arc<FeeEstimator>,
+	Arc<EsploraSyncClient<Arc<FilesystemLogger>>>,
+	Arc<K>,
+	Arc<FilesystemLogger>,
+>;
+
 /// A local, potentially user-provided, identifier of a channel.
 ///
 /// By default, this will be randomly generated for the user to ensure local uniqueness.