diff --git a/Cargo.lock b/Cargo.lock
index bcdb99d..4cd52f0 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -501,8 +501,11 @@ dependencies = [
  "prost",
  "rand_core",
  "safer-ffi",
+ "storage",
+ "tempfile",
  "thiserror",
  "x25519-dalek",
+ "zeroize",
 ]
 
 [[package]]
diff --git a/conversations/Cargo.toml b/conversations/Cargo.toml
index cdb02a9..4ea9408 100644
--- a/conversations/Cargo.toml
+++ b/conversations/Cargo.toml
@@ -18,3 +18,8 @@ rand_core = { version = "0.6" }
 safer-ffi = "0.1.13"
 thiserror = "2.0.17"
 x25519-dalek = { version = "2.0.1", features = ["static_secrets", "reusable_secrets", "getrandom"] }
+storage = { path = "../storage" }
+zeroize = { version = "1.8.2", features = ["derive"] }
+
+[dev-dependencies]
+tempfile = "3"
diff --git a/conversations/src/api.rs b/conversations/src/api.rs
index bd1e300..75319f9 100644
--- a/conversations/src/api.rs
+++ b/conversations/src/api.rs
@@ -13,9 +13,12 @@ use safer_ffi::{
     prelude::{c_slice, repr_c},
 };
 
+use storage::StorageConfig;
+
 use crate::{
     context::{Context, Introduction},
     errors::ChatError,
+    ffi::utils::CResult,
     types::ContentData,
 };
 
@@ -54,6 +57,41 @@ pub fn create_context(name: repr_c::String) -> repr_c::Box<ContextHandle> {
     Box::new(ContextHandle(Context::new_with_name(&*name))).into()
 }
 
+/// Creates a new libchat Context with file-based persistent storage.
+///
+/// The identity will be loaded from storage if it exists, or created and saved if not.
+///
+/// # Parameters
+/// - name: Friendly name for the identity (used if creating new identity)
+/// - db_path: Path to the SQLite database file
+/// - db_secret: Secret key for encrypting the database
+///
+/// # Returns
+/// CResult with context handle on success, or error string on failure.
+/// On success, the context handle must be freed with `destroy_context()` after usage.
+/// On error, the error string must be freed with `destroy_string()` after usage.
+#[ffi_export]
+pub fn create_context_with_storage(
+    name: repr_c::String,
+    db_path: repr_c::String,
+    db_secret: repr_c::String,
+) -> CResult<repr_c::Box<ContextHandle>, repr_c::String> {
+    let config = StorageConfig::Encrypted {
+        path: db_path.to_string(),
+        key: db_secret.to_string(),
+    };
+    match Context::open(&*name, config) {
+        Ok(ctx) => CResult {
+            ok: Some(Box::new(ContextHandle(ctx)).into()),
+            err: None,
+        },
+        Err(e) => CResult {
+            ok: None,
+            err: Some(e.to_string().into()),
+        },
+    }
+}
+
 /// Returns the friendly name of the contexts installation.
 ///
 #[ffi_export]
diff --git a/conversations/src/context.rs b/conversations/src/context.rs
index 2b36f68..bec37a5 100644
--- a/conversations/src/context.rs
+++ b/conversations/src/context.rs
@@ -1,11 +1,14 @@
 use std::rc::Rc;
 
+use storage::StorageConfig;
+
 use crate::{
     conversation::{ConversationId, ConversationStore, Convo, Id},
     errors::ChatError,
     identity::Identity,
     inbox::Inbox,
     proto::{EncryptedPayload, EnvelopeV1, Message},
+    storage::ChatStorage,
     types::{AddressedEnvelope, ContentData},
 };
 
@@ -18,17 +21,44 @@ pub struct Context {
     _identity: Rc<Identity>,
     store: ConversationStore,
     inbox: Inbox,
+    #[allow(dead_code)] // Will be used for conversation persistence
+    storage: ChatStorage,
 }
 
 impl Context {
-    pub fn new_with_name(name: impl Into<String>) -> Self {
-        let identity = Rc::new(Identity::new(name));
-        let inbox = Inbox::new(Rc::clone(&identity)); //
-        Self {
+    /// Opens or creates a Context with the given storage configuration.
+    ///
+    /// If an identity exists in storage, it will be restored.
+    /// Otherwise, a new identity will be created with the given name and saved.
+    pub fn open(name: impl Into<String>, config: StorageConfig) -> Result<Self, ChatError> {
+        let mut storage = ChatStorage::new(config)?;
+        let name = name.into();
+
+        // Load or create identity
+        let identity = if let Some(identity) = storage.load_identity()? {
+            identity
+        } else {
+            let identity = Identity::new(&name);
+            storage.save_identity(&identity)?;
+            identity
+        };
+
+        let identity = Rc::new(identity);
+        let inbox = Inbox::new(Rc::clone(&identity));
+
+        Ok(Self {
             _identity: identity,
             store: ConversationStore::new(),
             inbox,
-        }
+            storage,
+        })
+    }
+
+    /// Creates a new in-memory Context (for testing).
+    ///
+    /// Uses in-memory SQLite database. Each call creates a new isolated database.
+    pub fn new_with_name(name: impl Into<String>) -> Self {
+        Self::open(name, StorageConfig::InMemory).expect("in-memory storage should not fail")
     }
 
     pub fn installation_name(&self) -> &str {
@@ -195,4 +225,31 @@ mod tests {
             send_and_verify(&mut saro, &mut raya, &saro_convo_id, &content);
         }
     }
+
+    #[test]
+    fn identity_persistence() {
+        // Use file-based storage to test real persistence
+        let dir = tempfile::tempdir().unwrap();
+        let db_path = dir
+            .path()
+            .join("test_identity.db")
+            .to_string_lossy()
+            .to_string();
+        let config = StorageConfig::File(db_path);
+
+        // Create context - this should create and save a new identity
+        let ctx1 = Context::open("alice", config.clone()).unwrap();
+        let pubkey1 = ctx1._identity.public_key();
+        let name1 = ctx1.installation_name().to_string();
+
+        // Drop and reopen - should load the same identity
+        drop(ctx1);
+        let ctx2 = Context::open("alice", config).unwrap();
+        let pubkey2 = ctx2._identity.public_key();
+        let name2 = ctx2.installation_name().to_string();
+
+        // Identity should be the same
+        assert_eq!(pubkey1, pubkey2, "public key should persist");
+        assert_eq!(name1, name2, "name should persist");
+    }
 }
diff --git a/conversations/src/errors.rs b/conversations/src/errors.rs
index d551960..f47004c 100644
--- a/conversations/src/errors.rs
+++ b/conversations/src/errors.rs
@@ -1,5 +1,7 @@
 pub use thiserror::Error;
 
+use storage::StorageError;
+
 #[derive(Error, Debug)]
 pub enum ChatError {
     #[error("protocol error: {0:?}")]
@@ -20,6 +22,8 @@ pub enum ChatError {
     BadParsing(&'static str),
     #[error("convo with id: {0} was not found")]
     NoConvo(String),
+    #[error("storage error: {0}")]
+    Storage(#[from] StorageError),
 }
 
 #[derive(Error, Debug)]
diff --git a/conversations/src/ffi/mod.rs b/conversations/src/ffi/mod.rs
new file mode 100644
index 0000000..b5614dd
--- /dev/null
+++ b/conversations/src/ffi/mod.rs
@@ -0,0 +1 @@
+pub mod utils;
diff --git a/conversations/src/ffi/utils.rs b/conversations/src/ffi/utils.rs
new file mode 100644
index 0000000..7989631
--- /dev/null
+++ b/conversations/src/ffi/utils.rs
@@ -0,0 +1,8 @@
+use safer_ffi::prelude::*;
+
+#[derive_ReprC]
+#[repr(C)]
+pub struct CResult<T: ReprC, Err: ReprC> {
+    pub ok: Option<T>,
+    pub err: Option<Err>,
+}
diff --git a/conversations/src/identity.rs b/conversations/src/identity.rs
index 76c2700..8ca27be 100644
--- a/conversations/src/identity.rs
+++ b/conversations/src/identity.rs
@@ -24,6 +24,13 @@ impl Identity {
         }
     }
 
+    pub fn from_secret(name: impl Into<String>, secret: PrivateKey) -> Self {
+        Self {
+            name: name.into(),
+            secret,
+        }
+    }
+
     pub fn public_key(&self) -> PublicKey {
         PublicKey::from(&self.secret)
     }
diff --git a/conversations/src/lib.rs b/conversations/src/lib.rs
index 79d6a5a..5490629 100644
--- a/conversations/src/lib.rs
+++ b/conversations/src/lib.rs
@@ -3,9 +3,11 @@ mod context;
 mod conversation;
 mod crypto;
 mod errors;
+mod ffi;
 mod identity;
 mod inbox;
 mod proto;
+mod storage;
 mod types;
 mod utils;
 
diff --git a/conversations/src/storage/db.rs b/conversations/src/storage/db.rs
new file mode 100644
index 0000000..c855416
--- /dev/null
+++ b/conversations/src/storage/db.rs
@@ -0,0 +1,111 @@
+//! Chat-specific storage implementation.
+
+use storage::{RusqliteError, SqliteDb, StorageConfig, StorageError, params};
+use zeroize::Zeroize;
+
+use super::migrations;
+use super::types::IdentityRecord;
+use crate::identity::Identity;
+
+/// Chat-specific storage operations.
+///
+/// This struct wraps a SqliteDb and provides domain-specific
+/// storage operations for chat state (identity, inbox keys, chat metadata).
+///
+/// Note: Ratchet state persistence is delegated to double_ratchets::RatchetStorage.
+pub struct ChatStorage {
+    db: SqliteDb,
+}
+
+impl ChatStorage {
+    /// Creates a new ChatStorage with the given configuration.
+    pub fn new(config: StorageConfig) -> Result<Self, StorageError> {
+        let db = SqliteDb::new(config)?;
+        Self::run_migrations(db)
+    }
+
+    /// Applies all migrations and returns the storage instance.
+    fn run_migrations(mut db: SqliteDb) -> Result<Self, StorageError> {
+        migrations::apply_migrations(db.connection_mut())?;
+        Ok(Self { db })
+    }
+
+    // ==================== Identity Operations ====================
+
+    /// Saves the identity (secret key).
+    ///
+    /// Note: The secret key bytes are explicitly zeroized after use to minimize
+    /// the time sensitive data remains in stack memory.
+    pub fn save_identity(&mut self, identity: &Identity) -> Result<(), StorageError> {
+        let mut secret_bytes = identity.secret().DANGER_to_bytes();
+        let result = self.db.connection().execute(
+            "INSERT OR REPLACE INTO identity (id, name, secret_key) VALUES (1, ?1, ?2)",
+            params![identity.get_name(), secret_bytes.as_slice()],
+        );
+        secret_bytes.zeroize();
+        result?;
+        Ok(())
+    }
+
+    /// Loads the identity if it exists.
+    ///
+    /// Note: Secret key bytes are zeroized after being copied into IdentityRecord,
+    /// which handles its own zeroization via ZeroizeOnDrop.
+    pub fn load_identity(&self) -> Result<Option<Identity>, StorageError> {
+        let mut stmt = self
+            .db
+            .connection()
+            .prepare("SELECT name, secret_key FROM identity WHERE id = 1")?;
+
+        let result = stmt.query_row([], |row| {
+            let name: String = row.get(0)?;
+            let secret_key: Vec<u8> = row.get(1)?;
+            Ok((name, secret_key))
+        });
+
+        match result {
+            Ok((name, mut secret_key_vec)) => {
+                let bytes: Result<[u8; 32], _> = secret_key_vec.as_slice().try_into();
+                let bytes = match bytes {
+                    Ok(b) => b,
+                    Err(_) => {
+                        secret_key_vec.zeroize();
+                        return Err(StorageError::InvalidData(
+                            "Invalid secret key length".into(),
+                        ));
+                    }
+                };
+                secret_key_vec.zeroize();
+                let record = IdentityRecord {
+                    name,
+                    secret_key: bytes,
+                };
+                Ok(Some(Identity::from(record)))
+            }
+            Err(RusqliteError::QueryReturnedNoRows) => Ok(None),
+            Err(e) => Err(e.into()),
+        }
+    }
+}
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+
+    #[test]
+    fn test_identity_roundtrip() {
+        let mut storage = ChatStorage::new(StorageConfig::InMemory).unwrap();
+
+        // Initially no identity
+        assert!(storage.load_identity().unwrap().is_none());
+
+        // Save identity
+        let identity = Identity::new("default");
+        let pubkey = identity.public_key();
+        storage.save_identity(&identity).unwrap();
+
+        // Load identity
+        let loaded = storage.load_identity().unwrap().unwrap();
+        assert_eq!(loaded.public_key(), pubkey);
+    }
+}
diff --git a/conversations/src/storage/migrations.rs b/conversations/src/storage/migrations.rs
new file mode 100644
index 0000000..014bb96
--- /dev/null
+++ b/conversations/src/storage/migrations.rs
@@ -0,0 +1,46 @@
+//! Database migrations module.
+//!
+//! SQL migrations are embedded at compile time and applied in order.
+//! Each migration is applied atomically within a transaction.
+
+use storage::{Connection, StorageError};
+
+/// Embeds and returns all migration SQL files in order.
+pub fn get_migrations() -> Vec<(&'static str, &'static str)> {
+    vec![(
+        "001_initial_schema",
+        include_str!("migrations/001_initial_schema.sql"),
+    )]
+}
+
+/// Applies all migrations to the database.
+///
+/// Uses a simple version tracking table to avoid re-running migrations.
+pub fn apply_migrations(conn: &mut Connection) -> Result<(), StorageError> {
+    // Create migrations tracking table if it doesn't exist
+    conn.execute_batch(
+        "CREATE TABLE IF NOT EXISTS _migrations (
+            name TEXT PRIMARY KEY,
+            applied_at INTEGER NOT NULL DEFAULT (strftime('%s', 'now'))
+        );",
+    )?;
+
+    for (name, sql) in get_migrations() {
+        // Check if migration already applied
+        let already_applied: bool = conn.query_row(
+            "SELECT EXISTS(SELECT 1 FROM _migrations WHERE name = ?1)",
+            [name],
+            |row| row.get(0),
+        )?;
+
+        if !already_applied {
+            // Apply migration and record it atomically in a transaction
+            let tx = conn.transaction()?;
+            tx.execute_batch(sql)?;
+            tx.execute("INSERT INTO _migrations (name) VALUES (?1)", [name])?;
+            tx.commit()?;
+        }
+    }
+
+    Ok(())
+}
diff --git a/conversations/src/storage/migrations/001_initial_schema.sql b/conversations/src/storage/migrations/001_initial_schema.sql
new file mode 100644
index 0000000..5a97bfe
--- /dev/null
+++ b/conversations/src/storage/migrations/001_initial_schema.sql
@@ -0,0 +1,9 @@
+-- Initial schema for chat storage
+-- Migration: 001_initial_schema
+
+-- Identity table (single row)
+CREATE TABLE IF NOT EXISTS identity (
+    id INTEGER PRIMARY KEY CHECK (id = 1),
+    name TEXT NOT NULL,
+    secret_key BLOB NOT NULL
+);
diff --git a/conversations/src/storage/mod.rs b/conversations/src/storage/mod.rs
new file mode 100644
index 0000000..9364aeb
--- /dev/null
+++ b/conversations/src/storage/mod.rs
@@ -0,0 +1,7 @@
+//! Storage module for persisting chat state.
+
+mod db;
+mod migrations;
+pub(crate) mod types;
+
+pub(crate) use db::ChatStorage;
diff --git a/conversations/src/storage/types.rs b/conversations/src/storage/types.rs
new file mode 100644
index 0000000..8767324
--- /dev/null
+++ b/conversations/src/storage/types.rs
@@ -0,0 +1,58 @@
+//! Storage record types for serialization/deserialization.
+
+use zeroize::{Zeroize, ZeroizeOnDrop};
+
+use crate::crypto::PrivateKey;
+use crate::identity::Identity;
+
+/// Record for storing identity (secret key).
+/// Implements ZeroizeOnDrop to securely clear secret key from memory.
+#[derive(Debug, Zeroize, ZeroizeOnDrop)]
+pub struct IdentityRecord {
+    /// The identity name.
+    pub name: String,
+    /// The secret key bytes (32 bytes).
+    pub secret_key: [u8; 32],
+}
+
+impl From<IdentityRecord> for Identity {
+    fn from(record: IdentityRecord) -> Self {
+        let name = record.name.clone();
+        let secret = PrivateKey::from(record.secret_key);
+        Identity::from_secret(name, secret)
+    }
+}
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+
+    #[test]
+    fn test_identity_record_zeroize() {
+        let secret_key = [0xAB_u8; 32];
+        let mut record = IdentityRecord {
+            name: "test".to_string(),
+            secret_key,
+        };
+
+        // Get a pointer to the secret key before zeroizing
+        let ptr = record.secret_key.as_ptr();
+
+        // Manually zeroize (simulates what ZeroizeOnDrop does)
+        record.zeroize();
+
+        // Verify the memory is zeroed
+        // SAFETY: ptr still points to valid memory within record
+        unsafe {
+            let slice = std::slice::from_raw_parts(ptr, 32);
+            assert!(slice.iter().all(|&b| b == 0), "secret_key should be zeroed");
+        }
+
+        // Also verify via the struct field
+        assert!(
+            record.secret_key.iter().all(|&b| b == 0),
+            "secret_key field should be zeroed"
+        );
+        assert!(record.name.is_empty(), "name should be cleared");
+    }
+}
diff --git a/storage/src/errors.rs b/storage/src/errors.rs
index 1410f85..9d65d64 100644
--- a/storage/src/errors.rs
+++ b/storage/src/errors.rs
@@ -26,6 +26,10 @@ pub enum StorageError {
     /// Transaction error.
     #[error("transaction error: {0}")]
     Transaction(String),
+
+    /// Invalid data error.
+    #[error("invalid data: {0}")]
+    InvalidData(String),
 }
 
 impl From<rusqlite::Error> for StorageError {
diff --git a/storage/src/lib.rs b/storage/src/lib.rs
index bacc9b6..9240dc2 100644
--- a/storage/src/lib.rs
+++ b/storage/src/lib.rs
@@ -12,4 +12,4 @@ pub use errors::StorageError;
 pub use sqlite::{SqliteDb, StorageConfig};
 
 // Re-export rusqlite types that domain crates will need
-pub use rusqlite::{Error as RusqliteError, Transaction, params};
+pub use rusqlite::{Connection, Error as RusqliteError, Transaction, params};
diff --git a/storage/src/sqlite.rs b/storage/src/sqlite.rs
index 4d42e9d..c6b00ab 100644
--- a/storage/src/sqlite.rs
+++ b/storage/src/sqlite.rs
@@ -66,6 +66,13 @@ impl SqliteDb {
         &self.conn
     }
 
+    /// Returns a mutable reference to the underlying connection.
+    ///
+    /// Use this for operations that require mutable access, such as transactions.
+    pub fn connection_mut(&mut self) -> &mut Connection {
+        &mut self.conn
+    }
+
     /// Begins a transaction.
     pub fn transaction(&mut self) -> Result<rusqlite::Transaction<'_>, StorageError> {
         Ok(self.conn.transaction()?)