diff --git a/__init__.py b/__init__.py
index 162f3dc..2d0ebcf 100644
--- a/__init__.py
+++ b/__init__.py
@@ -5,7 +5,7 @@ from lnbits.tasks import create_permanent_unique_task
 from loguru import logger
 
 from .crud import db
-from .tasks import wait_for_paid_invoices
+from .tasks import wait_for_cassette_state_events, wait_for_paid_invoices
 from .views import satmachineadmin_generic_router
 from .views_api import satmachineadmin_api_router
 
@@ -42,6 +42,14 @@ def satmachineadmin_start():
         "ext_satmachineadmin", wait_for_paid_invoices
     )
     scheduled_tasks.append(invoice_task)
+    # Cassette bootstrap consumer (#29 v1) — subscribes to
+    # bitspire-cassettes-state events from each active ATM and upserts
+    # cassette_configs on receipt. Soft-fails if nostrclient isn't
+    # installed (logs + backs off, never crashes).
+    cassette_task = create_permanent_unique_task(
+        "ext_satmachineadmin_cassette_bootstrap", wait_for_cassette_state_events
+    )
+    scheduled_tasks.append(cassette_task)
 
 
 __all__ = [
diff --git a/cassette_transport.py b/cassette_transport.py
new file mode 100644
index 0000000..1725dde
--- /dev/null
+++ b/cassette_transport.py
@@ -0,0 +1,424 @@
+"""
+Cassette-config Nostr transport — operator ↔ ATM kind-30078 publish + consume.
+
+Per the locked design at aiolabs/satmachineadmin#29 (paired with
+lamassu-next#56) and the dcd0874 privacy-by-default pivot, the operator
+publishes position-keyed cassette config to a target ATM via:
+
+  kind = 30078 (NIP-78, replaceable)
+  tags = [
+    ["d", "bitspire-cassettes:<atm_pubkey_hex>"],
+    ["p", "<atm_pubkey_hex>"]
+  ]
+  content = NIP-44 v2 encrypted JSON of PublishCassettesPayload.to_wire_dict()
+  pubkey = operator pubkey
+  sig    = operator signature
+
+The ATM-side consumer (lamassu-next#56) subscribes by the d-tag + its own
+npub, decrypts, validates, applies, hot-reloads HAL.
+
+Reverse direction (ATM → operator, v1 = one-shot bootstrap on first boot,
+v2 = continuous reverse channel for reconciliation):
+
+  kind = 30078
+  tags = [
+    ["d", "bitspire-cassettes-state:<atm_pubkey_hex>"],
+    ["p", "<operator_pubkey_hex>"]
+  ]
+  content = NIP-44 v2 encrypted JSON, same PublishCassettesPayload shape
+  pubkey = ATM pubkey
+
+This module owns the wire-format side of both directions. The consumer
+task (tasks.py) calls `decrypt_and_parse_state_event` per incoming event;
+the API endpoint (views_api.py) calls `publish_to_atm` per operator submit.
+
+The `<m>` placeholder semantics (load-bearing per the 2026-05-30T11:50Z
+coord-log entry): always the ATM's hex pubkey, NEVER satmachineadmin's
+internal dca_machines.id UUID. Helper `_atm_hex_pubkey(machine)`
+centralises the canonicalisation via lnbits.utils.nostr.normalize_public_key.
+"""
+
+from __future__ import annotations
+
+import json
+import time
+
+from lnbits.core.crud.users import get_account
+from lnbits.core.services.nip46_bunker_client import (
+    NsecBunkerRpcError,
+    NsecBunkerTimeoutError,
+)
+from lnbits.core.signers import resolve_signer
+from lnbits.core.signers.base import (
+    NostrSigner,
+    SignerError,
+    SignerUnavailableError,
+)
+from lnbits.utils.nostr import normalize_public_key
+from loguru import logger
+
+from .models import Machine, PublishCassettesPayload
+from .nip44 import Nip44Error
+from .nip44 import decrypt_from as _nip44_local_decrypt
+from .nip44 import encrypt_for as _nip44_local_encrypt
+
+_KIND_NIP78 = 30078
+_D_TAG_CONFIG_PREFIX = "bitspire-cassettes:"  # operator → ATM
+_D_TAG_STATE_PREFIX = "bitspire-cassettes-state:"  # ATM → operator
+
+
+# =============================================================================
+# Errors
+# =============================================================================
+
+
+class CassetteTransportError(Exception):
+    """Generic transport-layer error. Subclasses distinguish failure modes
+    so the API can surface meaningful HTTP statuses + the consumer task
+    can log + skip without crashing."""
+
+
+class OperatorIdentityMissing(CassetteTransportError):
+    """Operator account has no Nostr pubkey on file, or no signer is
+    available (pre-bunker rollout — operator hasn't onboarded via
+    Nostr-login)."""
+
+
+class SignerUnavailable(CassetteTransportError):
+    """Resolved signer can't sign server-side (client-side-only signer,
+    or transient bunker unreachability post-lnbits#18). Publish skipped."""
+
+
+class RelayUnavailable(CassetteTransportError):
+    """nostrclient extension isn't installed or its relay manager isn't
+    reachable. Treated as soft-fail; publish skipped + logged."""
+
+
+class CassetteEventDecodeError(CassetteTransportError):
+    """Inbound state event failed validation: bad signature, NIP-44 v2
+    decrypt failure, or payload didn't conform to PublishCassettesPayload.
+    Terminal — caller should log + skip, advancing past the event."""
+
+
+class CassetteEventTransientError(CassetteTransportError):
+    """Inbound state event couldn't be decrypted because the signer
+    component (typically the bunker) is transiently unavailable. Caller
+    should NOT advance past the event; retry on next tick.
+
+    Distinct from CassetteEventDecodeError so the consumer task can
+    differentiate "MAC failed, give up" from "bunker is partitioned, try
+    again in a few seconds" — surfaced by lnbits at coord-log
+    2026-05-31T07:10Z as the load-bearing distinction post-PR-#38."""
+
+
+# =============================================================================
+# Helpers — canonical pubkey + d-tag construction
+# =============================================================================
+
+
+def _atm_hex_pubkey(machine: Machine) -> str:
+    """Canonicalise machine.machine_npub (hex OR npub bech32 — operator
+    enters either in the UI) to lowercase hex. ALL d-tag substitutions
+    use this value; using the internal machine.id UUID would silently
+    no-op the wire-level filter (per coord-log 11:50Z load-bearing nudge).
+    """
+    return normalize_public_key(machine.machine_npub).lower()
+
+
+def _config_d_tag(atm_pubkey_hex: str) -> str:
+    """d-tag for operator → ATM publish. ATM subscribes by this tag."""
+    return f"{_D_TAG_CONFIG_PREFIX}{atm_pubkey_hex}"
+
+
+def _state_d_tag(atm_pubkey_hex: str) -> str:
+    """d-tag for ATM → operator publish (bootstrap in v1, continuous v2)."""
+    return f"{_D_TAG_STATE_PREFIX}{atm_pubkey_hex}"
+
+
+def build_state_d_tags_for_machines(machines: list[Machine]) -> list[str]:
+    """Bootstrap-consumer subscription filter helper: returns the full
+    `#d=[...]` list for all known ATMs an operator subscribes to."""
+    return [_state_d_tag(_atm_hex_pubkey(m)) for m in machines]
+
+
+# =============================================================================
+# Sign-as-operator — hybrid path (resolve_signer post #17, prvkey fallback)
+# =============================================================================
+
+
+async def _resolve_operator_signer(operator_user_id: str):
+    """Fetch the operator's account + resolve to a NostrSigner.
+
+    Single source of truth for "give me the signer for this operator,
+    or raise an operator-facing error if we can't." Returns
+    `(account, signer)` so callers that need both (publish path needs
+    `account.pubkey` for the event author and the signer for both
+    encrypt + sign) don't double-fetch.
+
+    Raises:
+      - OperatorIdentityMissing — no account, or no pubkey on file
+      - SignerUnavailable — signer resolve failed, or signer can't sign
+        server-side (ClientSideOnly)
+    """
+    account = await get_account(operator_user_id)
+    if account is None or not account.pubkey:
+        raise OperatorIdentityMissing(
+            f"operator {operator_user_id[:8]}... has no Nostr pubkey on file. "
+            "Onboard via the LNbits Nostr-login flow to publish cassette "
+            "config to your ATMs."
+        )
+    try:
+        signer = resolve_signer(account)
+    except SignerError as exc:
+        raise SignerUnavailable(
+            f"signer resolve failed for operator {operator_user_id[:8]}...: " f"{exc}"
+        ) from exc
+    if not signer.can_sign():
+        raise SignerUnavailable(
+            f"operator {operator_user_id[:8]}... has a client-side-only "
+            "signer; server can't sign or NIP-44-encrypt on their behalf. "
+            "Operator must hold their nsec via a NIP-46 bunker (lnbits#18) "
+            "or migrate to a server-signing account."
+        )
+    return account, signer
+
+
+async def _sign_as_operator(operator_user_id: str, event: dict) -> dict | None:
+    """Sign `event` using the operator's signer (LocalSigner or
+    RemoteBunkerSigner). Mutates `event` to add `created_at` (now),
+    `pubkey`, `id`, and `sig`.
+
+    Raises typed CassetteTransportError subclasses on hard failure
+    (the publish endpoint maps these to HTTP statuses); never returns
+    None on the publish path.
+    """
+    _account, signer = await _resolve_operator_signer(operator_user_id)
+    # created_at is part of the BIP-340 event-id hash; set before signing.
+    event["created_at"] = int(time.time())
+    try:
+        return await signer.sign_event(event)
+    except SignerUnavailableError as exc:
+        raise SignerUnavailable(
+            f"signer unavailable for operator {operator_user_id[:8]}...: " f"{exc}"
+        ) from exc
+
+
+async def _nip44_encrypt_via_signer(
+    account, signer: NostrSigner, plaintext: str, peer_pubkey_hex: str
+) -> str:
+    """NIP-44 v2 encrypt via the signer abstraction, with a transitional
+    fallback to direct-prvkey for LocalSigner accounts.
+
+    The bunker (RemoteBunkerSigner) implements `nip44_encrypt` natively —
+    the operator's nsec never leaves the bunker process. LocalSigner's
+    `nip44_encrypt` stub explicitly raises SignerUnavailableError
+    ("LocalSigner does not implement nip44_encrypt") per the
+    post-PR-#38 ABC — the spec is "migrate to bunker." For the
+    transitional window where some operators are still on LocalSigner
+    + their `account.prvkey` is intact, we catch that signal and use
+    our hand-rolled NIP-44 v2 impl against the stored prvkey. Same
+    wire output either way.
+
+    Removed once every operator account on this instance is bunker-
+    backed (S7 fully landed). At that point this helper collapses to
+    `return await signer.nip44_encrypt(plaintext, peer_pubkey_hex)`.
+    """
+    try:
+        return await signer.nip44_encrypt(plaintext, peer_pubkey_hex)
+    except SignerUnavailableError:
+        if account.signer_type == "LocalSigner" and account.prvkey:
+            return _nip44_local_encrypt(plaintext, account.prvkey, peer_pubkey_hex)
+        # ClientSideOnly, or RemoteBunkerSigner with bunker comms failure
+        # at config time — re-raise without wrapping; caller maps it.
+        raise
+
+
+async def _nip44_decrypt_via_signer(
+    account, signer: NostrSigner, ciphertext: str, peer_pubkey_hex: str
+) -> str:
+    """Decrypt mirror of `_nip44_encrypt_via_signer`. Same LocalSigner
+    transitional fallback."""
+    try:
+        return await signer.nip44_decrypt(ciphertext, peer_pubkey_hex)
+    except SignerUnavailableError:
+        if account.signer_type == "LocalSigner" and account.prvkey:
+            return _nip44_local_decrypt(ciphertext, account.prvkey, peer_pubkey_hex)
+        raise
+
+
+# =============================================================================
+# Publish — operator → ATM (the satmachineadmin API path)
+# =============================================================================
+
+
+async def _publish_signed_event(signed_event: dict) -> None:
+    """Send a signed Nostr event to all relays via the nostrclient
+    extension's singleton RelayManager.
+
+    Lazy import + typed-error so the API can surface "your LNbits doesn't
+    have nostrclient installed" as a 503 rather than a 500. Pattern
+    matches the cross-extension import guards in
+    `lnbits.core.services.users` (nostrmarket / nostrrelay).
+    """
+    try:
+        from nostrclient.router import (  # type: ignore[import-not-found]
+            nostr_client,
+        )
+    except ImportError as exc:
+        raise RelayUnavailable(
+            "nostrclient extension is not installed; cassette config "
+            "publish requires it. Install + activate the nostrclient "
+            "extension on this LNbits instance."
+        ) from exc
+    msg = json.dumps(["EVENT", signed_event])
+    nostr_client.relay_manager.publish_message(msg)
+
+
+async def publish_to_atm(
+    machine: Machine,
+    payload: PublishCassettesPayload,
+    operator_user_id: str,
+) -> dict:
+    """Build, encrypt, sign, and publish a kind-30078 cassette config event
+    from the operator to the target ATM.
+
+    Returns the signed event dict on success (caller may log event.id for
+    audit). Raises CassetteTransportError subclasses on hard failures:
+      - OperatorIdentityMissing → 400: operator hasn't onboarded
+      - SignerUnavailable → 503: signer offline / client-side-only / bunker
+        timeout at the encrypt or sign step
+      - RelayUnavailable → 503: nostrclient not installed
+      - CassetteTransportError → 500: anything else
+    """
+    atm_pubkey_hex = _atm_hex_pubkey(machine)
+
+    # Single fetch + resolve — same signer is used for both encrypt and sign.
+    account, signer = await _resolve_operator_signer(operator_user_id)
+
+    # NIP-44 v2 encrypt the wire payload. Bunker round-trip on
+    # RemoteBunkerSigner; direct prvkey on LocalSigner (transitional).
+    plaintext = json.dumps(payload.to_wire_dict(), separators=(",", ":"))
+    try:
+        content = await _nip44_encrypt_via_signer(
+            account, signer, plaintext, atm_pubkey_hex
+        )
+    except NsecBunkerTimeoutError as exc:
+        raise SignerUnavailable(
+            f"bunker unreachable while encrypting cassette config for "
+            f"operator {operator_user_id[:8]}...: {exc}"
+        ) from exc
+    except NsecBunkerRpcError as exc:
+        raise SignerUnavailable(
+            f"bunker rejected nip44_encrypt for operator "
+            f"{operator_user_id[:8]}... (policy / MAC / config issue): "
+            f"{exc}"
+        ) from exc
+    except SignerUnavailableError as exc:
+        raise SignerUnavailable(
+            f"signer cannot nip44-encrypt for operator "
+            f"{operator_user_id[:8]}...: {exc}"
+        ) from exc
+
+    event: dict = {
+        "kind": _KIND_NIP78,
+        "tags": [
+            ["d", _config_d_tag(atm_pubkey_hex)],
+            ["p", atm_pubkey_hex],
+        ],
+        "content": content,
+        # created_at is set inside _sign_as_operator before signing.
+    }
+    signed = await _sign_as_operator(operator_user_id, event)
+    if signed is None:
+        raise CassetteTransportError(
+            "sign_as_operator returned None unexpectedly — soft-fail path "
+            "shouldn't be reachable on a publish-initiated flow"
+        )
+
+    await _publish_signed_event(signed)
+    logger.info(
+        f"satmachineadmin: published kind-30078 cassette config to ATM "
+        f"{atm_pubkey_hex[:12]}... (event_id={signed['id'][:12]}..., "
+        f"machine_id={machine.id}, positions={sorted(payload.positions.keys())})"
+    )
+    return signed
+
+
+# =============================================================================
+# Consume — ATM → operator (the bootstrap consumer task)
+# =============================================================================
+
+
+async def decrypt_and_parse_state_event(
+    event: dict, account, signer: NostrSigner
+) -> PublishCassettesPayload:
+    """Decrypt + parse an inbound `bitspire-cassettes-state:<atm_pubkey_hex>`
+    event the ATM published toward the operator.
+
+    Caller is responsible for:
+      - filtering on `kind=30078` and the expected `#d` tag list
+      - verifying the event signature (lnbits.utils.nostr.verify_event)
+      - confirming `event["pubkey"]` matches a known ATM (= machine.machine_npub
+        canonicalised) — the consumer task does this before calling here
+      - resolving the operator's account + signer via
+        `_resolve_operator_signer(...)` and passing them in
+
+    This function does:
+      - NIP-44 v2 decrypt of event["content"] via `signer.nip44_decrypt`
+        (bunker round-trip on RemoteBunkerSigner; direct prvkey on the
+        transitional LocalSigner path)
+      - JSON parse + PublishCassettesPayload validation
+
+    Error mapping:
+      - CassetteEventTransientError on NsecBunkerTimeoutError → caller
+        should NOT advance state_event_id; retry on next consumer tick
+      - CassetteEventDecodeError on anything else (bunker RPC reject,
+        signer unavailable, MAC failure, JSON parse, payload shape) →
+        terminal; caller logs + skips
+    """
+    sender_pubkey = event.get("pubkey")
+    content = event.get("content")
+    if not isinstance(sender_pubkey, str) or not isinstance(content, str):
+        raise CassetteEventDecodeError(
+            "event missing required pubkey or content fields"
+        )
+
+    try:
+        plaintext = await _nip44_decrypt_via_signer(
+            account, signer, content, sender_pubkey
+        )
+    except NsecBunkerTimeoutError as exc:
+        raise CassetteEventTransientError(
+            f"bunker unreachable while decrypting cassette state event: {exc}"
+        ) from exc
+    except NsecBunkerRpcError as exc:
+        raise CassetteEventDecodeError(
+            f"bunker rejected nip44_decrypt (policy / MAC / config): {exc}"
+        ) from exc
+    except SignerUnavailableError as exc:
+        raise CassetteEventDecodeError(f"signer cannot nip44-decrypt: {exc}") from exc
+    except Nip44Error as exc:
+        # Hand-rolled LocalSigner fallback path (transitional) — MAC fail
+        # / version mismatch / length issue.
+        raise CassetteEventDecodeError(
+            f"NIP-44 v2 decrypt failed (LocalSigner fallback path): {exc}"
+        ) from exc
+    except ValueError as exc:
+        # coincurve raises ValueError on a malformed pubkey hex (only
+        # reachable via the LocalSigner fallback path; the bunker handles
+        # pubkey validation server-side).
+        raise CassetteEventDecodeError(f"sender pubkey is malformed: {exc}") from exc
+
+    try:
+        raw = json.loads(plaintext)
+    except json.JSONDecodeError as exc:
+        raise CassetteEventDecodeError(
+            f"decrypted content isn't valid JSON: {exc}"
+        ) from exc
+
+    try:
+        return PublishCassettesPayload(**raw)
+    except Exception as exc:
+        raise CassetteEventDecodeError(
+            f"payload didn't validate as PublishCassettesPayload: {exc}"
+        ) from exc
diff --git a/crud.py b/crud.py
index 51b07a4..1144b0c 100644
--- a/crud.py
+++ b/crud.py
@@ -6,12 +6,12 @@
 # machine model".
 
 from datetime import datetime
-from typing import List, Optional
 
 from lnbits.db import Database
 from lnbits.helpers import urlsafe_short_hash
 
 from .models import (
+    CassetteConfig,
     ClientBalanceSummary,
     CommissionSplit,
     CommissionSplitLeg,
@@ -26,6 +26,7 @@ from .models import (
     DcaPayment,
     DcaSettlement,
     Machine,
+    PublishCassettesPayload,
     SuperConfig,
     TelemetrySnapshot,
     UpdateDcaClientData,
@@ -33,6 +34,7 @@ from .models import (
     UpdateDepositStatusData,
     UpdateMachineData,
     UpdateSuperConfigData,
+    UpsertCassetteConfigData,
     UpsertDcaLpData,
 )
 
@@ -44,7 +46,7 @@ db = Database("ext_satoshimachine")
 # =============================================================================
 
 
-async def get_super_config() -> Optional[SuperConfig]:
+async def get_super_config() -> SuperConfig | None:
     return await db.fetchone(
         "SELECT * FROM satoshimachine.super_config WHERE id = :id",
         {"id": "default"},
@@ -52,7 +54,7 @@ async def get_super_config() -> Optional[SuperConfig]:
     )
 
 
-async def update_super_config(data: UpdateSuperConfigData) -> Optional[SuperConfig]:
+async def update_super_config(data: UpdateSuperConfigData) -> SuperConfig | None:
     update_data = {k: v for k, v in data.dict().items() if v is not None}
     if not update_data:
         return await get_super_config()
@@ -100,7 +102,7 @@ async def create_machine(operator_user_id: str, data: CreateMachineData) -> Mach
     return machine
 
 
-async def get_machine(machine_id: str) -> Optional[Machine]:
+async def get_machine(machine_id: str) -> Machine | None:
     return await db.fetchone(
         "SELECT * FROM satoshimachine.dca_machines WHERE id = :id",
         {"id": machine_id},
@@ -108,7 +110,7 @@ async def get_machine(machine_id: str) -> Optional[Machine]:
     )
 
 
-async def get_machine_by_npub(machine_npub: str) -> Optional[Machine]:
+async def get_machine_by_npub(machine_npub: str) -> Machine | None:
     return await db.fetchone(
         "SELECT * FROM satoshimachine.dca_machines WHERE machine_npub = :npub",
         {"npub": machine_npub},
@@ -116,7 +118,7 @@ async def get_machine_by_npub(machine_npub: str) -> Optional[Machine]:
     )
 
 
-async def get_active_machine_by_wallet_id(wallet_id: str) -> Optional[Machine]:
+async def get_active_machine_by_wallet_id(wallet_id: str) -> Machine | None:
     """Used by the invoice listener to route an incoming payment to a machine."""
     return await db.fetchone(
         """
@@ -129,7 +131,7 @@ async def get_active_machine_by_wallet_id(wallet_id: str) -> Optional[Machine]:
     )
 
 
-async def get_machines_for_operator(operator_user_id: str) -> List[Machine]:
+async def get_machines_for_operator(operator_user_id: str) -> list[Machine]:
     return await db.fetchall(
         """
         SELECT * FROM satoshimachine.dca_machines
@@ -141,7 +143,46 @@ async def get_machines_for_operator(operator_user_id: str) -> List[Machine]:
     )
 
 
-async def update_machine(machine_id: str, data: UpdateMachineData) -> Optional[Machine]:
+async def list_all_active_machines() -> list[Machine]:
+    """Used by the cassette bootstrap consumer task to build a single
+    cross-operator subscription filter. Each event's pubkey routes to
+    the right operator via get_machine_by_atm_pubkey_hex + the machine's
+    operator_user_id.
+    """
+    return await db.fetchall(
+        """
+        SELECT * FROM satoshimachine.dca_machines
+        WHERE is_active = true
+        ORDER BY created_at DESC
+        """,
+        {},
+        Machine,
+    )
+
+
+async def get_machine_by_atm_pubkey_hex(atm_pubkey_hex: str) -> Machine | None:
+    """Look up an active machine by its ATM pubkey, accepting hex or bech32
+    in machine_npub. Used by the cassette bootstrap consumer to route an
+    incoming state event to the right machine row (and therefore operator
+    privkey for decryption).
+
+    O(N) over active machines — fine for small fleets. If fleet sizes
+    grow, normalise machine_npub-at-write to hex and add an index.
+    """
+    from lnbits.utils.nostr import normalize_public_key
+
+    target = atm_pubkey_hex.lower()
+    machines = await list_all_active_machines()
+    for m in machines:
+        try:
+            if normalize_public_key(m.machine_npub).lower() == target:
+                return m
+        except (ValueError, AssertionError):
+            continue
+    return None
+
+
+async def update_machine(machine_id: str, data: UpdateMachineData) -> Machine | None:
     update_data = {k: v for k, v in data.dict().items() if v is not None}
     if not update_data:
         return await get_machine(machine_id)
@@ -213,7 +254,7 @@ _CLIENT_FROM = (
 )
 
 
-async def get_dca_client(client_id: str) -> Optional[DcaClient]:
+async def get_dca_client(client_id: str) -> DcaClient | None:
     return await db.fetchone(
         f"SELECT {_CLIENT_SELECT} FROM {_CLIENT_FROM} WHERE c.id = :id",
         {"id": client_id},
@@ -223,7 +264,7 @@ async def get_dca_client(client_id: str) -> Optional[DcaClient]:
 
 async def get_dca_client_for_machine_user(
     machine_id: str, user_id: str
-) -> Optional[DcaClient]:
+) -> DcaClient | None:
     return await db.fetchone(
         f"""
         SELECT {_CLIENT_SELECT} FROM {_CLIENT_FROM}
@@ -234,7 +275,7 @@ async def get_dca_client_for_machine_user(
     )
 
 
-async def get_dca_clients_for_machine(machine_id: str) -> List[DcaClient]:
+async def get_dca_clients_for_machine(machine_id: str) -> list[DcaClient]:
     return await db.fetchall(
         f"""
         SELECT {_CLIENT_SELECT} FROM {_CLIENT_FROM}
@@ -246,7 +287,7 @@ async def get_dca_clients_for_machine(machine_id: str) -> List[DcaClient]:
     )
 
 
-async def get_dca_clients_for_operator(operator_user_id: str) -> List[DcaClient]:
+async def get_dca_clients_for_operator(operator_user_id: str) -> list[DcaClient]:
     """All clients across every machine this operator owns."""
     return await db.fetchall(
         f"""
@@ -261,7 +302,7 @@ async def get_dca_clients_for_operator(operator_user_id: str) -> List[DcaClient]
     )
 
 
-async def get_dca_clients_for_user(user_id: str) -> List[DcaClient]:
+async def get_dca_clients_for_user(user_id: str) -> list[DcaClient]:
     """LP cross-operator view — every machine this LP is registered at."""
     return await db.fetchall(
         f"""
@@ -274,7 +315,7 @@ async def get_dca_clients_for_user(user_id: str) -> List[DcaClient]:
     )
 
 
-async def get_flow_mode_clients_for_machine(machine_id: str) -> List[DcaClient]:
+async def get_flow_mode_clients_for_machine(machine_id: str) -> list[DcaClient]:
     """Active LPs enrolled at this machine whose per-user `dca_lp` row
     has `default_dca_mode = 'flow'`. Used by the distribution algorithm.
 
@@ -302,7 +343,7 @@ async def get_flow_mode_clients_for_machine(machine_id: str) -> List[DcaClient]:
 # =============================================================================
 
 
-async def get_dca_lp(user_id: str) -> Optional[DcaLpPreferences]:
+async def get_dca_lp(user_id: str) -> DcaLpPreferences | None:
     """Return the LP's preferences row, or None if they haven't onboarded
     via satmachineclient yet."""
     return await db.fetchone(
@@ -325,7 +366,7 @@ async def upsert_dca_lp(
     user_id: str,
     data: UpsertDcaLpData,
     *,
-    fallback_wallet_id: Optional[str] = None,
+    fallback_wallet_id: str | None = None,
 ) -> DcaLpPreferences:
     """Create or update the LP's preferences row.
 
@@ -380,7 +421,7 @@ async def upsert_dca_lp(
 
 async def update_dca_client(
     client_id: str, data: UpdateDcaClientData
-) -> Optional[DcaClient]:
+) -> DcaClient | None:
     update_data = {k: v for k, v in data.dict().items() if v is not None}
     if not update_data:
         return await get_dca_client(client_id)
@@ -442,7 +483,7 @@ async def create_deposit(
     return deposit
 
 
-async def get_deposit(deposit_id: str) -> Optional[DcaDeposit]:
+async def get_deposit(deposit_id: str) -> DcaDeposit | None:
     return await db.fetchone(
         "SELECT * FROM satoshimachine.dca_deposits WHERE id = :id",
         {"id": deposit_id},
@@ -450,7 +491,7 @@ async def get_deposit(deposit_id: str) -> Optional[DcaDeposit]:
     )
 
 
-async def get_deposits_for_client(client_id: str) -> List[DcaDeposit]:
+async def get_deposits_for_client(client_id: str) -> list[DcaDeposit]:
     return await db.fetchall(
         """
         SELECT * FROM satoshimachine.dca_deposits
@@ -462,7 +503,7 @@ async def get_deposits_for_client(client_id: str) -> List[DcaDeposit]:
     )
 
 
-async def get_deposits_for_operator(operator_user_id: str) -> List[DcaDeposit]:
+async def get_deposits_for_operator(operator_user_id: str) -> list[DcaDeposit]:
     return await db.fetchall(
         """
         SELECT d.*
@@ -478,7 +519,7 @@ async def get_deposits_for_operator(operator_user_id: str) -> List[DcaDeposit]:
 
 async def update_deposit(
     deposit_id: str, data: UpdateDepositData
-) -> Optional[DcaDeposit]:
+) -> DcaDeposit | None:
     update_data = {k: v for k, v in data.dict().items() if v is not None}
     if not update_data:
         return await get_deposit(deposit_id)
@@ -493,7 +534,7 @@ async def update_deposit(
 
 async def update_deposit_status(
     deposit_id: str, data: UpdateDepositStatusData
-) -> Optional[DcaDeposit]:
+) -> DcaDeposit | None:
     payload = {
         "id": deposit_id,
         "status": data.status,
@@ -528,8 +569,8 @@ async def delete_deposit(deposit_id: str) -> None:
 async def create_settlement_idempotent(
     data: CreateDcaSettlementData,
     initial_status: str,
-    error_message: Optional[str] = None,
-) -> Optional[DcaSettlement]:
+    error_message: str | None = None,
+) -> DcaSettlement | None:
     """Insert a settlement keyed by payment_hash.
 
     Returns the inserted row on first sight; returns the existing row
@@ -589,7 +630,7 @@ async def create_settlement_idempotent(
     return await get_settlement(settlement_id)
 
 
-async def get_settlement(settlement_id: str) -> Optional[DcaSettlement]:
+async def get_settlement(settlement_id: str) -> DcaSettlement | None:
     return await db.fetchone(
         "SELECT * FROM satoshimachine.dca_settlements WHERE id = :id",
         {"id": settlement_id},
@@ -599,7 +640,7 @@ async def get_settlement(settlement_id: str) -> Optional[DcaSettlement]:
 
 async def get_settlement_by_payment_hash(
     payment_hash: str,
-) -> Optional[DcaSettlement]:
+) -> DcaSettlement | None:
     return await db.fetchone(
         """
         SELECT * FROM satoshimachine.dca_settlements
@@ -612,7 +653,7 @@ async def get_settlement_by_payment_hash(
 
 async def get_settlements_for_machine(
     machine_id: str, limit: int = 100
-) -> List[DcaSettlement]:
+) -> list[DcaSettlement]:
     return await db.fetchall(
         """
         SELECT * FROM satoshimachine.dca_settlements
@@ -705,7 +746,7 @@ async def get_stuck_settlements_for_operator(
 
 async def force_reset_stuck_settlement(
     settlement_id: str,
-) -> Optional[DcaSettlement]:
+) -> DcaSettlement | None:
     """Operator escape hatch for genuinely stuck settlements (processor
     crashed mid-flight, etc.). Flips 'pending'/'processing' → 'errored' so
     the existing retry endpoint can take over. Clears processing_claim.
@@ -728,7 +769,7 @@ async def force_reset_stuck_settlement(
 
 async def get_settlements_for_operator(
     operator_user_id: str, limit: int = 200
-) -> List[DcaSettlement]:
+) -> list[DcaSettlement]:
     return await db.fetchall(
         """
         SELECT s.*
@@ -746,8 +787,8 @@ async def get_settlements_for_operator(
 async def mark_settlement_status(
     settlement_id: str,
     status: str,
-    error_message: Optional[str] = None,
-) -> Optional[DcaSettlement]:
+    error_message: str | None = None,
+) -> DcaSettlement | None:
     """Status: 'pending' | 'processing' | 'processed' | 'partial' |
     'refunded' | 'errored'. Clears processing_claim on terminal states so a
     fresh claim attempt won't see a stale token."""
@@ -778,7 +819,7 @@ async def mark_settlement_status(
 
 async def claim_settlement_for_processing(
     settlement_id: str,
-) -> Optional[DcaSettlement]:
+) -> DcaSettlement | None:
     """Optimistic-lock claim: atomically flip a settlement to 'processing'
     and tag it with a per-invocation token. Returns the claimed row on
     success; None if another caller already won the claim or the settlement
@@ -808,7 +849,7 @@ async def claim_settlement_for_processing(
 
 async def reset_settlement_for_retry(
     settlement_id: str,
-) -> Optional[DcaSettlement]:
+) -> DcaSettlement | None:
     """Operator retry path. Flips 'errored' → 'pending' and voids any
     'failed' legs so process_settlement re-runs them fresh. Completed legs
     are left in place — we never re-pay sats that already moved."""
@@ -844,7 +885,7 @@ async def apply_partial_dispense(
     new_operator_fee_sats: int,
     new_fiat_amount: float,
     appended_note: str,
-) -> Optional[DcaSettlement]:
+) -> DcaSettlement | None:
     """Overwrite the monetary fields on a settlement (partial-dispense
     recompute) and prepend `appended_note` to the notes column.
 
@@ -899,7 +940,7 @@ async def count_completed_legs_for_settlement(settlement_id: str) -> int:
 
 async def append_settlement_note(
     settlement_id: str, note: str, author_user_id: str
-) -> Optional[DcaSettlement]:
+) -> DcaSettlement | None:
     """Prepend an operator-authored note to settlement.notes. Each entry is
     timestamped (UTC) and tagged with the author's user id so the trail
     is accountable. Append-only: existing entries are never edited."""
@@ -944,8 +985,8 @@ async def void_open_legs_for_settlement(settlement_id: str) -> None:
 
 
 async def get_commission_splits(
-    operator_user_id: str, machine_id: Optional[str] = None
-) -> List[CommissionSplit]:
+    operator_user_id: str, machine_id: str | None = None
+) -> list[CommissionSplit]:
     """Returns the rule set for the given scope.
 
     Precedence (caller's responsibility): try per-machine override first;
@@ -974,7 +1015,7 @@ async def get_commission_splits(
 
 async def get_effective_commission_splits(
     operator_user_id: str, machine_id: str
-) -> List[CommissionSplit]:
+) -> list[CommissionSplit]:
     """Per-machine override if set, otherwise operator's default ruleset."""
     overrides = await get_commission_splits(operator_user_id, machine_id)
     if overrides:
@@ -984,9 +1025,9 @@ async def get_effective_commission_splits(
 
 async def replace_commission_splits(
     operator_user_id: str,
-    machine_id: Optional[str],
-    legs: List[CommissionSplitLeg],
-) -> List[CommissionSplit]:
+    machine_id: str | None,
+    legs: list[CommissionSplitLeg],
+) -> list[CommissionSplit]:
     """Atomic replace for the (operator, machine) scope. Caller should have
     already validated legs sum to 1.0 via the Pydantic model."""
     if machine_id is None:
@@ -1072,7 +1113,7 @@ async def create_dca_payment(data: CreateDcaPaymentData) -> DcaPayment:
     return payment
 
 
-async def get_dca_payment(payment_id: str) -> Optional[DcaPayment]:
+async def get_dca_payment(payment_id: str) -> DcaPayment | None:
     return await db.fetchone(
         "SELECT * FROM satoshimachine.dca_payments WHERE id = :id",
         {"id": payment_id},
@@ -1080,7 +1121,7 @@ async def get_dca_payment(payment_id: str) -> Optional[DcaPayment]:
     )
 
 
-async def get_payments_for_settlement(settlement_id: str) -> List[DcaPayment]:
+async def get_payments_for_settlement(settlement_id: str) -> list[DcaPayment]:
     return await db.fetchall(
         """
         SELECT * FROM satoshimachine.dca_payments
@@ -1092,7 +1133,7 @@ async def get_payments_for_settlement(settlement_id: str) -> List[DcaPayment]:
     )
 
 
-async def get_payments_for_client(client_id: str) -> List[DcaPayment]:
+async def get_payments_for_client(client_id: str) -> list[DcaPayment]:
     return await db.fetchall(
         """
         SELECT * FROM satoshimachine.dca_payments
@@ -1105,8 +1146,8 @@ async def get_payments_for_client(client_id: str) -> List[DcaPayment]:
 
 
 async def get_payments_for_operator(
-    operator_user_id: str, leg_type: Optional[str] = None, limit: int = 200
-) -> List[DcaPayment]:
+    operator_user_id: str, leg_type: str | None = None, limit: int = 200
+) -> list[DcaPayment]:
     if leg_type is None:
         return await db.fetchall(
             """
@@ -1133,9 +1174,9 @@ async def get_payments_for_operator(
 async def update_payment_status(
     payment_id: str,
     status: str,
-    external_payment_hash: Optional[str] = None,
-    error_message: Optional[str] = None,
-) -> Optional[DcaPayment]:
+    external_payment_hash: str | None = None,
+    error_message: str | None = None,
+) -> DcaPayment | None:
     await db.execute(
         """
         UPDATE satoshimachine.dca_payments
@@ -1161,7 +1202,7 @@ async def update_payment_status(
 
 async def get_client_balance_summary(
     client_id: str,
-) -> Optional[ClientBalanceSummary]:
+) -> ClientBalanceSummary | None:
     """Per-client (and per-machine, since clients are per-machine in v2) summary.
 
     DCA legs only — settlement/autoforward/super_fee/operator_split legs are
@@ -1210,7 +1251,7 @@ async def get_client_balance_summary(
 # =============================================================================
 
 
-async def get_telemetry(machine_id: str) -> Optional[TelemetrySnapshot]:
+async def get_telemetry(machine_id: str) -> TelemetrySnapshot | None:
     return await db.fetchone(
         "SELECT * FROM satoshimachine.dca_telemetry WHERE machine_id = :mid",
         {"mid": machine_id},
@@ -1221,19 +1262,19 @@ async def get_telemetry(machine_id: str) -> Optional[TelemetrySnapshot]:
 async def upsert_beacon_snapshot(
     machine_id: str,
     *,
-    cash_in: Optional[bool] = None,
-    cash_out: Optional[bool] = None,
-    cash_level: Optional[str] = None,
-    fiat: Optional[str] = None,
-    model: Optional[str] = None,
-    name: Optional[str] = None,
-    location: Optional[str] = None,
-    geo: Optional[str] = None,
-    fees_json: Optional[str] = None,
-    limits_json: Optional[str] = None,
-    denominations_json: Optional[str] = None,
-    version: Optional[str] = None,
-) -> Optional[TelemetrySnapshot]:
+    cash_in: bool | None = None,
+    cash_out: bool | None = None,
+    cash_level: str | None = None,
+    fiat: str | None = None,
+    model: str | None = None,
+    name: str | None = None,
+    location: str | None = None,
+    geo: str | None = None,
+    fees_json: str | None = None,
+    limits_json: str | None = None,
+    denominations_json: str | None = None,
+    version: str | None = None,
+) -> TelemetrySnapshot | None:
     """Upsert kind-30078 beacon fields. All fields are nullable because today's
     upstream payload only carries cash_in/cash_out/cash_level/fiat/model (see
     lamassu-next#43 — the enrichment is not yet shipped)."""
@@ -1310,7 +1351,7 @@ async def upsert_beacon_snapshot(
 
 async def upsert_fleet_snapshot(
     machine_id: str, telemetry_json: str
-) -> Optional[TelemetrySnapshot]:
+) -> TelemetrySnapshot | None:
     """Upsert kind-30079 operator-only telemetry. Awaits lamassu-next#42 to
     produce a real schema; we store the raw JSON blob until then."""
     existing = await get_telemetry(machine_id)
@@ -1334,3 +1375,156 @@ async def upsert_fleet_snapshot(
             {"mid": machine_id, "json": telemetry_json, "now": now},
         )
     return await get_telemetry(machine_id)
+
+
+# =============================================================================
+# Cassette configs — operator-driven ATM cassette inventory (#29 v1.1).
+# =============================================================================
+# Row lifecycle per #29:
+#   - First population for a (machine_id, position) pair → apply_bootstrap_state
+#     (consumer reading the ATM's one-shot bitspire-cassettes-state event)
+#   - Operator edit of denomination or count → update_cassette_config
+#     (refuses to create new rows; the slot count is hardware-determined)
+#   - Row creation/deletion for a new position → admin only, via ATM
+#     re-provisioning + new bootstrap event (not exposed in v1 here)
+
+
+def _should_apply_bootstrap_state(
+    existing_state_event_id: str | None, incoming_event_id: str
+) -> bool:
+    """Pure-function dedup gate for apply_bootstrap_state.
+
+    Returns False if any existing row for this machine already references
+    the incoming event_id (relay re-delivery after restart). True otherwise.
+
+    Extracted as a pure function so the dedup decision is unit-testable
+    without a database round-trip. The actual idempotency check in
+    apply_bootstrap_state fetches one existing row and passes its
+    state_event_id here.
+    """
+    return existing_state_event_id != incoming_event_id
+
+
+async def get_cassette_config(
+    machine_id: str, position: int
+) -> CassetteConfig | None:
+    return await db.fetchone(
+        "SELECT * FROM satoshimachine.cassette_configs "
+        "WHERE machine_id = :mid AND position = :pos",
+        {"mid": machine_id, "pos": position},
+        CassetteConfig,
+    )
+
+
+async def list_cassette_configs_for_machine(
+    machine_id: str,
+) -> list[CassetteConfig]:
+    return await db.fetchall(
+        "SELECT * FROM satoshimachine.cassette_configs "
+        "WHERE machine_id = :mid ORDER BY position",
+        {"mid": machine_id},
+        CassetteConfig,
+    )
+
+
+async def update_cassette_config(
+    machine_id: str,
+    position: int,
+    data: UpsertCassetteConfigData,
+    *,
+    updated_by: str | None = None,
+) -> CassetteConfig | None:
+    """Operator-driven row update: change denomination and/or count for a
+    single cassette slot. Refuses to create new rows — those only land via
+    apply_bootstrap_state() consuming an ATM bootstrap event (per #29 row
+    lifecycle: hardware-determined slot count, not operator-creatable).
+    Returns None if the (machine_id, position) row doesn't exist.
+    """
+    existing = await get_cassette_config(machine_id, position)
+    if existing is None:
+        return None
+    update_data: dict = {k: v for k, v in data.dict().items() if v is not None}
+    if not update_data:
+        return existing
+    update_data["updated_at"] = datetime.now()
+    update_data["updated_by"] = updated_by
+    set_clause = ", ".join(f"{k} = :{k}" for k in update_data)
+    update_data["mid"] = machine_id
+    update_data["pos"] = position
+    await db.execute(
+        f"UPDATE satoshimachine.cassette_configs SET {set_clause} "
+        "WHERE machine_id = :mid AND position = :pos",
+        update_data,
+    )
+    return await get_cassette_config(machine_id, position)
+
+
+async def apply_bootstrap_state(
+    machine_id: str,
+    event_id: str,
+    event_created_at: datetime,
+    payload: PublishCassettesPayload,
+) -> bool:
+    """Consume an ATM-published kind-30078 bitspire-cassettes-state:<m> event
+    and upsert one cassette_configs row per position in the payload.
+
+    Returns True if the upsert ran; False if any existing row for this
+    machine already references this event_id (idempotent on relay
+    re-delivery / restart).
+
+    Populates both the operator-believed columns (denomination, count,
+    updated_at, updated_by='atm-bootstrap') AND the v2 reverse-channel
+    columns (state_denomination, state_count, state_at, state_event_id)
+    so the operator's initial view matches the ATM's reported state. v2
+    reconciliation UI will diverge them when continuous reverse-channel
+    events land + the operator subsequently edits.
+    """
+    existing_first: dict | None = await db.fetchone(
+        "SELECT state_event_id FROM satoshimachine.cassette_configs "
+        "WHERE machine_id = :mid LIMIT 1",
+        {"mid": machine_id},
+    )
+    existing_event_id: str | None = None
+    if existing_first is not None:
+        existing_event_id = (
+            existing_first.get("state_event_id")
+            if isinstance(existing_first, dict)
+            else getattr(existing_first, "state_event_id", None)
+        )
+    if not _should_apply_bootstrap_state(existing_event_id, event_id):
+        return False
+
+    now = datetime.now()
+    for pos, row in payload.positions.items():
+        await db.execute(
+            """
+            INSERT INTO satoshimachine.cassette_configs
+            (machine_id, position, denomination, count, updated_at,
+             updated_by, state_denomination, state_count, state_at,
+             state_event_id)
+            VALUES (:mid, :pos, :denom, :count, :now, :by,
+                    :state_denom, :state_count, :state_at, :event_id)
+            ON CONFLICT (machine_id, position) DO UPDATE SET
+                denomination = excluded.denomination,
+                count = excluded.count,
+                updated_at = excluded.updated_at,
+                updated_by = excluded.updated_by,
+                state_denomination = excluded.state_denomination,
+                state_count = excluded.state_count,
+                state_at = excluded.state_at,
+                state_event_id = excluded.state_event_id
+            """,
+            {
+                "mid": machine_id,
+                "pos": pos,
+                "denom": row.denomination,
+                "count": row.count,
+                "now": now,
+                "by": "atm-bootstrap",
+                "state_denom": row.denomination,
+                "state_count": row.count,
+                "state_at": event_created_at,
+                "event_id": event_id,
+            },
+        )
+    return True
diff --git a/migrations.py b/migrations.py
index 38b29d0..e1d957c 100644
--- a/migrations.py
+++ b/migrations.py
@@ -474,9 +474,7 @@ async def m006_rename_to_canonical_sat_vocabulary(db):
     ]
     for table, old_col, new_col in renames:
         try:
-            await db.fetchone(
-                f"SELECT {old_col} FROM satoshimachine.{table} LIMIT 1"
-            )
+            await db.fetchone(f"SELECT {old_col} FROM satoshimachine.{table} LIMIT 1")
         except Exception:
             # old column doesn't exist; either rename already landed or
             # m001 produced the canonical schema directly on fresh install.
@@ -496,15 +494,11 @@ async def m006_rename_to_canonical_sat_vocabulary(db):
     ]
     for table, col in drops:
         try:
-            await db.fetchone(
-                f"SELECT {col} FROM satoshimachine.{table} LIMIT 1"
-            )
+            await db.fetchone(f"SELECT {col} FROM satoshimachine.{table} LIMIT 1")
         except Exception:
             # column doesn't exist; either already dropped or never present.
             continue
-        await db.execute(
-            f"ALTER TABLE satoshimachine.{table} DROP COLUMN {col}"
-        )
+        await db.execute(f"ALTER TABLE satoshimachine.{table} DROP COLUMN {col}")
 
 
 async def m005_lock_deposit_currency_to_machine_fiat_code(db):
@@ -538,3 +532,115 @@ async def m005_lock_deposit_currency_to_machine_fiat_code(db):
               AND m.fiat_code != d.currency
         )
         """)
+
+
+async def m007_add_cassette_configs(db):
+    """Add cassette_configs table for operator-driven ATM cassette inventory.
+
+    Tracks per-machine cassette state (denomination, count, position) editable
+    via the satmachineadmin dashboard and published to the ATM as encrypted
+    kind-30078 events. See aiolabs/satmachineadmin#29 + lamassu-next#56.
+
+    Schema choice: PK (machine_id, denomination) mirrors the ATM-side
+    denomination-as-key invariant in
+    bitspire/atm-tui/src/db.zig:31 and
+    lamassu-next/apps/machine/electron/state-store.ts:54
+    (the cassettes table PK is denomination; HAL inventory map keys on
+    denomination; dispense lookup is cassetteDenominations.indexOf —
+    duplicates collapse silently). Position is operator-assignable display
+    order, not the addressable unit.
+
+    Reserved nullable columns (state_count, state_at, state_event_id) hold
+    the latest bitspire-cassettes-state:<atm_pubkey_hex> event the ATM
+    publishes (one-shot bootstrap in v1; continuous in v2). v1 UI doesn't
+    render them; v2 reconciliation UI consumes them without a migration.
+    """
+    await db.execute(f"""
+        CREATE TABLE IF NOT EXISTS satoshimachine.cassette_configs (
+            machine_id      TEXT NOT NULL,
+            denomination    INTEGER NOT NULL,
+            count           INTEGER NOT NULL,
+            position        INTEGER NOT NULL,
+            updated_at      TIMESTAMP NOT NULL DEFAULT {db.timestamp_now},
+            updated_by      TEXT,
+            state_count     INTEGER,
+            state_at        TIMESTAMP,
+            state_event_id  TEXT,
+            PRIMARY KEY (machine_id, denomination)
+        );
+        """)
+
+
+async def m008_flip_cassette_configs_pk_to_position(db):
+    """Flip cassette_configs PK from (machine_id, denomination) to
+    (machine_id, position). The denomination-keyed shape from m007 was
+    wrong: real machines have N cartridges of the same denomination
+    (cash-out throughput requires multiple bays for one denom), and the
+    operator needs to swap cartridge denominations during refill ($20
+    bay becomes $50 bay) without a re-provisioning event.
+
+    Coordinated v1.1 fix with the ATM side per the 2026-05-30T18:30Z +
+    18:45Z log entries:
+      - Wire shape flips from {denominations: {<d>: {position, count}}}
+        to {positions: {<p>: {denomination, count}}}
+      - Position becomes the fixed row identity (hardware bay number);
+        denomination + count are operator-editable per row
+      - NO unique constraint on denomination (multiple same-denom cassettes
+        are operationally valid)
+
+    Also adds `state_denomination` nullable column reserved for v2
+    reverse-channel reconciliation (operator-believed denomination per
+    slot vs ATM-reported denomination — diff highlighting in v2 UI).
+
+    SQLite doesn't support ALTER PRIMARY KEY directly; the migration
+    does the standard create-copy-drop-rename dance. Idempotent via the
+    column-probe trick used elsewhere in this file.
+    """
+    try:
+        # Probe: does the old PK shape still exist? If state_denomination
+        # column already exists, m008 already ran — no-op.
+        await db.fetchone(
+            "SELECT state_denomination FROM satoshimachine.cassette_configs " "LIMIT 1"
+        )
+        return
+    except Exception:
+        pass
+
+    await db.execute(f"""
+        CREATE TABLE IF NOT EXISTS satoshimachine.cassette_configs_new (
+            machine_id          TEXT NOT NULL,
+            position            INTEGER NOT NULL,
+            denomination        INTEGER NOT NULL,
+            count               INTEGER NOT NULL,
+            updated_at          TIMESTAMP NOT NULL DEFAULT {db.timestamp_now},
+            updated_by          TEXT,
+            state_denomination  INTEGER,
+            state_count         INTEGER,
+            state_at            TIMESTAMP,
+            state_event_id      TEXT,
+            PRIMARY KEY (machine_id, position)
+        );
+        """)
+
+    # Backfill from the old table — column-by-column copy. In the v1
+    # m007 schema the row's `denomination` was simultaneously the
+    # operator-believed denomination AND the ATM-reported denomination
+    # (because the only write path was the bootstrap consumer copying
+    # from the ATM's state.db). So state_denomination at migration time
+    # = current denomination as a best-guess baseline; the next bootstrap
+    # event re-populates the state_* columns authoritatively.
+    await db.execute("""
+        INSERT INTO satoshimachine.cassette_configs_new
+            (machine_id, position, denomination, count,
+             updated_at, updated_by,
+             state_denomination, state_count, state_at, state_event_id)
+        SELECT machine_id, position, denomination, count,
+               updated_at, updated_by,
+               denomination, state_count, state_at, state_event_id
+        FROM satoshimachine.cassette_configs
+        """)
+
+    await db.execute("DROP TABLE satoshimachine.cassette_configs")
+    await db.execute(
+        "ALTER TABLE satoshimachine.cassette_configs_new " "RENAME TO cassette_configs"
+    )
diff --git a/models.py b/models.py
index d683cac..6a18815 100644
--- a/models.py
+++ b/models.py
@@ -6,7 +6,6 @@
 # the plan at ~/.claude/plans/snug-gliding-shamir.md.
 
 from datetime import datetime
-from typing import Optional
 
 from pydantic import BaseModel, validator
 
@@ -26,8 +25,8 @@ class CreateMachineData(BaseModel):
 
     machine_npub: str
     wallet_id: str
-    name: Optional[str] = None
-    location: Optional[str] = None
+    name: str | None = None
+    location: str | None = None
     fiat_code: str = "GTQ"
 
 
@@ -36,8 +35,8 @@ class Machine(BaseModel):
     operator_user_id: str
     machine_npub: str
     wallet_id: str
-    name: Optional[str]
-    location: Optional[str]
+    name: str | None
+    location: str | None
     fiat_code: str
     is_active: bool
     created_at: datetime
@@ -45,11 +44,11 @@ class Machine(BaseModel):
 
 
 class UpdateMachineData(BaseModel):
-    name: Optional[str] = None
-    location: Optional[str] = None
-    fiat_code: Optional[str] = None
-    is_active: Optional[bool] = None
-    wallet_id: Optional[str] = None
+    name: str | None = None
+    location: str | None = None
+    fiat_code: str | None = None
+    is_active: bool | None = None
+    wallet_id: str | None = None
 
 
 # =============================================================================
@@ -69,14 +68,14 @@ class CreateDcaClientData(BaseModel):
 
     machine_id: str
     user_id: str
-    username: Optional[str] = None
+    username: str | None = None
 
 
 class DcaClient(BaseModel):
     id: str
     machine_id: str
     user_id: str
-    username: Optional[str]
+    username: str | None
     status: str
     created_at: datetime
     updated_at: datetime
@@ -92,8 +91,8 @@ class UpdateDcaClientData(BaseModel):
     / mode / autoforward changes go through satmachineclient against
     `dca_lp` instead."""
 
-    username: Optional[str] = None
-    status: Optional[str] = None
+    username: str | None = None
+    status: str | None = None
 
 
 class DcaLpPreferences(BaseModel):
@@ -109,8 +108,8 @@ class DcaLpPreferences(BaseModel):
     user_id: str
     dca_wallet_id: str
     default_dca_mode: str  # 'flow' | 'fixed'
-    fixed_mode_daily_limit: Optional[float]
-    autoforward_ln_address: Optional[str]
+    fixed_mode_daily_limit: float | None
+    autoforward_ln_address: str | None
     autoforward_enabled: bool
     created_at: datetime
     updated_at: datetime
@@ -121,11 +120,11 @@ class UpsertDcaLpData(BaseModel):
     edits their preferences. All fields optional on update — pass only
     the ones being changed."""
 
-    dca_wallet_id: Optional[str] = None
-    default_dca_mode: Optional[str] = None
-    fixed_mode_daily_limit: Optional[float] = None
-    autoforward_ln_address: Optional[str] = None
-    autoforward_enabled: Optional[bool] = None
+    dca_wallet_id: str | None = None
+    default_dca_mode: str | None = None
+    fixed_mode_daily_limit: float | None = None
+    autoforward_ln_address: str | None = None
+    autoforward_enabled: bool | None = None
 
 
 class ClientBalanceSummary(BaseModel):
@@ -156,7 +155,7 @@ class CreateDepositData(BaseModel):
     client_id: str
     machine_id: str
     amount: float
-    notes: Optional[str] = None
+    notes: str | None = None
 
     @validator("amount")
     def round_amount(cls, v):
@@ -173,9 +172,9 @@ class DcaDeposit(BaseModel):
     amount: float
     currency: str
     status: str  # 'pending' | 'confirmed' | 'rejected'
-    notes: Optional[str]
+    notes: str | None
     created_at: datetime
-    confirmed_at: Optional[datetime]
+    confirmed_at: datetime | None
 
 
 class UpdateDepositData(BaseModel):
@@ -183,8 +182,8 @@ class UpdateDepositData(BaseModel):
     `CreateDepositData`; the currency is bound to the machine and not
     editable after the row lands."""
 
-    amount: Optional[float] = None
-    notes: Optional[str] = None
+    amount: float | None = None
+    notes: str | None = None
 
     @validator("amount")
     def round_amount(cls, v):
@@ -195,7 +194,7 @@ class UpdateDepositData(BaseModel):
 
 class UpdateDepositStatusData(BaseModel):
     status: str  # 'pending' | 'confirmed' | 'rejected'
-    notes: Optional[str] = None
+    notes: str | None = None
 
 
 # =============================================================================
@@ -210,8 +209,8 @@ class UpdateDepositStatusData(BaseModel):
 class CreateDcaSettlementData(BaseModel):
     machine_id: str
     payment_hash: str  # the idempotency key (UNIQUE in the dca_settlements table)
-    bitspire_event_id: Optional[str] = None  # reserved for direct-Nostr ingestion
-    bitspire_txid: Optional[str] = None
+    bitspire_event_id: str | None = None  # reserved for direct-Nostr ingestion
+    bitspire_txid: str | None = None
     wire_sats: int
     fiat_amount: float
     fiat_code: str = "GTQ"
@@ -221,16 +220,16 @@ class CreateDcaSettlementData(BaseModel):
     platform_fee_sats: int
     operator_fee_sats: int
     tx_type: str  # 'cash_out' | 'cash_in'
-    bills_json: Optional[str] = None
-    cassettes_json: Optional[str] = None
+    bills_json: str | None = None
+    cassettes_json: str | None = None
 
 
 class DcaSettlement(BaseModel):
     id: str
     machine_id: str
     payment_hash: str
-    bitspire_event_id: Optional[str]
-    bitspire_txid: Optional[str]
+    bitspire_event_id: str | None
+    bitspire_txid: str | None
     wire_sats: int
     fiat_amount: float
     fiat_code: str
@@ -240,8 +239,8 @@ class DcaSettlement(BaseModel):
     platform_fee_sats: int
     operator_fee_sats: int
     tx_type: str
-    bills_json: Optional[str]
-    cassettes_json: Optional[str]
+    bills_json: str | None
+    cassettes_json: str | None
     # 'pending' (default at insert)
     # 'processing' (claim taken by distribution processor)
     # 'processed' (all legs paid)
@@ -252,19 +251,19 @@ class DcaSettlement(BaseModel):
     #             never went near distribution. error_message holds the
     #             reason. Retry is wrong — investigate the machine.)
     status: str
-    error_message: Optional[str]
-    processed_at: Optional[datetime]
+    error_message: str | None
+    processed_at: datetime | None
     created_at: datetime
     # Append-only audit memo. Populated when an operator triggers an in-place
     # adjustment (partial-dispense, manual reconciliation override). Each
     # entry timestamped + records original values so the overwrite is
     # auditable from the settlement detail view alone. Never edited in place.
-    notes: Optional[str] = None
+    notes: str | None = None
     # Optimistic-lock claim token written when status flips to 'processing'.
     # Two concurrent process_settlement invocations can't both win the claim
     # (only one matching read-back). Cleared back to NULL when the leg-
     # writing pass completes (status='processed' or 'errored').
-    processing_claim: Optional[str] = None
+    processing_claim: str | None = None
 
 
 # =============================================================================
@@ -286,7 +285,7 @@ class CommissionSplitLeg(BaseModel):
     """
 
     target: str
-    label: Optional[str] = None
+    label: str | None = None
     fraction: float
     sort_order: int = 0
 
@@ -306,10 +305,10 @@ class CommissionSplitLeg(BaseModel):
 
 class CommissionSplit(BaseModel):
     id: str
-    machine_id: Optional[str]  # None = operator's default ruleset
+    machine_id: str | None  # None = operator's default ruleset
     operator_user_id: str
     target: str
-    label: Optional[str]
+    label: str | None
     fraction: float
     sort_order: int
     created_at: datetime
@@ -322,7 +321,7 @@ class SetCommissionSplitsData(BaseModel):
     machine without an explicit override). Otherwise scoped per machine.
     """
 
-    machine_id: Optional[str] = None
+    machine_id: str | None = None
     legs: list[CommissionSplitLeg]
 
     @validator("legs")
@@ -339,35 +338,35 @@ class SetCommissionSplitsData(BaseModel):
 
 
 class CreateDcaPaymentData(BaseModel):
-    settlement_id: Optional[str] = None
-    client_id: Optional[str] = None
+    settlement_id: str | None = None
+    client_id: str | None = None
     machine_id: str
     operator_user_id: str
     leg_type: str
     # 'dca' | 'super_fee' | 'operator_split' | 'settlement' | 'autoforward' | 'refund'
-    destination_wallet_id: Optional[str] = None
-    destination_ln_address: Optional[str] = None
+    destination_wallet_id: str | None = None
+    destination_ln_address: str | None = None
     amount_sats: int
-    amount_fiat: Optional[float] = None
-    exchange_rate: Optional[float] = None
+    amount_fiat: float | None = None
+    exchange_rate: float | None = None
     transaction_time: datetime
-    external_payment_hash: Optional[str] = None
+    external_payment_hash: str | None = None
 
 
 class DcaPayment(BaseModel):
     id: str
-    settlement_id: Optional[str]
-    client_id: Optional[str]
+    settlement_id: str | None
+    client_id: str | None
     machine_id: str
     operator_user_id: str
     leg_type: str
-    destination_wallet_id: Optional[str]
-    destination_ln_address: Optional[str]
+    destination_wallet_id: str | None
+    destination_ln_address: str | None
     amount_sats: int
-    amount_fiat: Optional[float]
-    exchange_rate: Optional[float]
+    amount_fiat: float | None
+    exchange_rate: float | None
     transaction_time: datetime
-    external_payment_hash: Optional[str]
+    external_payment_hash: str | None
     status: str
     # Leg status enum:
     #   'pending'   — row written, payment not yet attempted
@@ -378,7 +377,7 @@ class DcaPayment(BaseModel):
     #   'skipped'   — intentionally not paid (no super wallet configured,
     #                 no commission ruleset, no exchange rate, no LPs)
     #   'refunded'  — reserved for future refund flows
-    error_message: Optional[str]
+    error_message: str | None
     created_at: datetime
 
 
@@ -391,22 +390,22 @@ class TelemetrySnapshot(BaseModel):
     machine_id: str
     # Beacon (kind-30078) — all fields are nullable because the upstream payload
     # is sparse today. As lamassu-next#43 lands, the post-#43 columns fill in.
-    beacon_cash_in: Optional[bool] = None
-    beacon_cash_out: Optional[bool] = None
-    beacon_cash_level: Optional[str] = None
-    beacon_fiat: Optional[str] = None
-    beacon_model: Optional[str] = None
-    beacon_name: Optional[str] = None
-    beacon_location: Optional[str] = None
-    beacon_geo: Optional[str] = None
-    beacon_fees_json: Optional[str] = None
-    beacon_limits_json: Optional[str] = None
-    beacon_denominations_json: Optional[str] = None
-    beacon_version: Optional[str] = None
-    beacon_received_at: Optional[datetime] = None
+    beacon_cash_in: bool | None = None
+    beacon_cash_out: bool | None = None
+    beacon_cash_level: str | None = None
+    beacon_fiat: str | None = None
+    beacon_model: str | None = None
+    beacon_name: str | None = None
+    beacon_location: str | None = None
+    beacon_geo: str | None = None
+    beacon_fees_json: str | None = None
+    beacon_limits_json: str | None = None
+    beacon_denominations_json: str | None = None
+    beacon_version: str | None = None
+    beacon_received_at: datetime | None = None
     # Fleet telemetry (kind-30079) — operator-only, awaits lamassu-next#42.
-    telemetry_json: Optional[str] = None
-    telemetry_received_at: Optional[datetime] = None
+    telemetry_json: str | None = None
+    telemetry_received_at: datetime | None = None
 
 
 # =============================================================================
@@ -417,13 +416,13 @@ class TelemetrySnapshot(BaseModel):
 class SuperConfig(BaseModel):
     id: str
     super_fee_fraction: float
-    super_fee_wallet_id: Optional[str]
+    super_fee_wallet_id: str | None
     updated_at: datetime
 
 
 class UpdateSuperConfigData(BaseModel):
-    super_fee_fraction: Optional[float] = None
-    super_fee_wallet_id: Optional[str] = None
+    super_fee_fraction: float | None = None
+    super_fee_wallet_id: str | None = None
 
     @validator("super_fee_fraction")
     def fee_in_unit_range(cls, v):
@@ -448,9 +447,9 @@ class PartialDispenseData(BaseModel):
     """
 
     settlement_id: str
-    dispensed_fraction: Optional[float] = None
-    dispensed_sats: Optional[int] = None
-    notes: Optional[str] = None
+    dispensed_fraction: float | None = None
+    dispensed_sats: int | None = None
+    notes: str | None = None
 
     @validator("dispensed_fraction")
     def fraction_in_unit_range(cls, v):
@@ -530,8 +529,8 @@ class SettleBalanceData(BaseModel):
     # there's no ambiguity about what rate was used.
     exchange_rate: float
     # If None, settle the LP's full remaining balance. Else partial.
-    amount_fiat: Optional[float] = None
-    notes: Optional[str] = None
+    amount_fiat: float | None = None
+    notes: str | None = None
 
     @validator("exchange_rate")
     def positive_rate(cls, v):
@@ -546,3 +545,140 @@ class SettleBalanceData(BaseModel):
         if v <= 0:
             raise ValueError("amount_fiat must be > 0 if specified")
         return round(float(v), 2)
+
+
+# =============================================================================
+# Cassette configs — operator-driven ATM cassette inventory (#29 v1.1).
+# =============================================================================
+# Schema is position-keyed per the coordinated v1.1 redesign at coord-log
+# 2026-05-30T18:30Z + 18:45Z. The earlier denomination-keyed shape (m007)
+# was wrong: real machines have N cassettes of the same denomination for
+# cash-out throughput, and operators need to swap cartridge denominations
+# during refill ($20 bay becomes a $50 bay) without re-provisioning.
+#
+# Wire shape:
+#   {"positions": {"<position_str>": {"denomination": N, "count": M}}}
+#
+# Editable surface per row:
+#   - denomination: yes (operator swaps cartridges during refill)
+#   - count: yes (refill / decrement)
+# Read-only per row:
+#   - position: hardware bay number; the slot count is fixed by the
+#     dispenser model (e.g., Tejo has 4 positions).
+#
+# No "denomination must be unique within payload" constraint: multiple
+# same-denom cassettes are operationally valid. The ATM HAL distributes
+# a dispense request greedy across all positions matching the requested
+# denomination (lamassu-next#56 v1.1 HAL refactor).
+#
+# state_* columns are reserved nullable for the v2 reverse-channel
+# reconciliation consumer (bitspire-cassettes-state:<atm_pubkey_hex>).
+# v1 populates them on bootstrap-event receipt but the UI doesn't render
+# reconciliation. state_denomination (added in m008) lets v2 highlight
+# operator-believed-vs-ATM-reported denomination drift per slot.
+
+
+class CassetteConfig(BaseModel):
+    machine_id: str
+    position: int
+    denomination: int
+    count: int
+    updated_at: datetime
+    updated_by: str | None
+    state_denomination: int | None
+    state_count: int | None
+    state_at: datetime | None
+    state_event_id: str | None
+
+
+class UpsertCassetteConfigData(BaseModel):
+    """Operator edits a single cassette row's denomination or count from
+    the dashboard. Both fields optional; pass only those changed.
+    Position is not edited — it's the row's identity (hardware bay)."""
+
+    denomination: int | None = None
+    count: int | None = None
+
+    @validator("denomination")
+    def denomination_positive(cls, v):
+        if v is None:
+            return v
+        if v <= 0:
+            raise ValueError("denomination must be > 0")
+        return v
+
+    @validator("count")
+    def count_non_negative(cls, v):
+        if v is None:
+            return v
+        if v < 0:
+            raise ValueError("count must be >= 0")
+        return v
+
+
+class CassettePayloadRow(BaseModel):
+    """One position's payload values in the wire-format
+    `{"positions": {"<pos>": {"denomination", "count"}}}`."""
+
+    denomination: int
+    count: int
+
+    @validator("denomination")
+    def denomination_positive(cls, v):
+        if v <= 0:
+            raise ValueError("denomination must be > 0")
+        return v
+
+    @validator("count")
+    def count_non_negative(cls, v):
+        if v < 0:
+            raise ValueError("count must be >= 0")
+        return v
+
+
+class PublishCassettesPayload(BaseModel):
+    """The decrypted JSON content of a kind-30078 cassette event, both
+    directions:
+      - operator → ATM   (d-tag `bitspire-cassettes:<atm_pubkey_hex>`)
+      - ATM → operator   (d-tag `bitspire-cassettes-state:<atm_pubkey_hex>`)
+
+    Wire shape: `{"positions": {"<pos_str>": {"denomination", "count"}}}`.
+    JSON object keys are always strings; the validator coerces back to
+    int on parse. The position key set MUST match what the receiver
+    already has (slot count is hardware-fixed; no add/remove from this
+    payload).
+
+    No denomination-unique constraint: multiple same-denom cassettes are
+    operationally valid (cash-out throughput on a popular denom).
+    """
+
+    positions: dict[int, CassettePayloadRow]
+
+    @validator("positions", pre=True)
+    def coerce_string_keys_to_int(cls, v):
+        if not isinstance(v, dict):
+            raise ValueError("positions must be a dict")
+        out = {}
+        for k, val in v.items():
+            try:
+                key_int = int(k)
+            except (TypeError, ValueError) as exc:
+                raise ValueError(f"position key {k!r} is not an int") from exc
+            if key_int <= 0:
+                raise ValueError(f"position must be > 0 (got {key_int})")
+            out[key_int] = val
+        return out
+
+    def to_wire_dict(self) -> dict:
+        """Serialise back to the wire format with string keys for JSON
+        object compatibility. Used by the publisher to build the kind-30078
+        event content before NIP-44 v2 encryption."""
+        return {
+            "positions": {
+                str(pos): {
+                    "denomination": row.denomination,
+                    "count": row.count,
+                }
+                for pos, row in self.positions.items()
+            }
+        }
diff --git a/nip44.py b/nip44.py
new file mode 100644
index 0000000..109860d
--- /dev/null
+++ b/nip44.py
@@ -0,0 +1,294 @@
+"""
+NIP-44 v2 — versioned encrypted payloads (https://github.com/nostr-protocol/nips/blob/master/44.md).
+
+Hand-rolled because lnbits historically shipped only NIP-04 (AES-CBC) in
+`lnbits.utils.nostr.encrypt_content`, and the locked design at
+aiolabs/satmachineadmin#29 (paired with lamassu-next#56) wires cassette config
+over kind-30078 with NIP-44 v2 encrypted content.
+
+## Runtime status (post lnbits PR #38, 2026-05-31)
+
+**Runtime usage has migrated to the signer abstraction** via
+`signer.nip44_encrypt` / `signer.nip44_decrypt` on `lnbits.core.signers.base.
+NostrSigner`. For RemoteBunkerSigner-backed accounts the bunker performs the
+crypto and the operator's nsec never leaves the bunker process; for the
+transitional LocalSigner path `cassette_transport._nip44_*_via_signer` falls
+back to the helpers in this module against the stored `account.prvkey`.
+
+This module's runtime export footprint is therefore:
+  - `encrypt_for` / `decrypt_from` — called by the LocalSigner fallback in
+    `cassette_transport` until every operator on the instance is bunker-backed
+    (S7 / aiolabs/satmachineadmin#21). Then those calls disappear too.
+  - Everything else (encrypt_with_conversation_key, decrypt_with_conversation_key,
+    get_conversation_key, padding helpers, error classes) is **test-only**:
+    referenced by `tests/test_nip44_v2.py` to validate the wire format against
+    the canonical paulmillr/nip44 reference vectors and the bitspire cross-test
+    fixture posted to the coordination log.
+
+Don't add new runtime call sites here. The signer abstraction is the path.
+
+Two safety nets keep the impl honest:
+  1. tests/test_nip44_v2.py runs reference vectors + round-trip + tamper-detection.
+  2. bitspire posts a sample event encrypted on their nostr-tools side to the
+     coord log; test_decrypts_bitspire_sample_event cross-checks our impl
+     against theirs by decrypting that event with a known privkey.
+
+Wire format (per spec):
+    payload = base64( 0x02 || nonce (32B) || ciphertext (var) || mac (32B) )
+
+Key derivation:
+    conversation_key = HKDF-extract(salt=b"nip44-v2", IKM=ecdh_shared_x)  # 32B PRK, stable per pair
+    per-message:
+        nonce = csprng(32 bytes)
+        temp = HKDF-expand(PRK=conversation_key, info=nonce, L=76)
+        chacha_key   = temp[0:32]
+        chacha_nonce = temp[32:44]
+        hmac_key     = temp[44:76]
+
+Padding scheme (NIP-44 v2 length-prefixed, variable-chunk):
+    padded = uint16_be(len(plaintext)) || plaintext || zeros
+    such that 2 + padded_data_len matches a fixed step.
+"""
+
+from __future__ import annotations
+
+import base64
+import hashlib
+import hmac as hmac_stdlib
+import os
+import struct
+
+import coincurve
+from cryptography.hazmat.primitives import hashes, hmac
+from cryptography.hazmat.primitives.ciphers import Cipher, algorithms
+from cryptography.hazmat.primitives.kdf.hkdf import HKDFExpand
+
+# Spec constants.
+_VERSION = 0x02
+_HKDF_SALT = b"nip44-v2"
+_MIN_PLAINTEXT_LEN = 1
+_MAX_PLAINTEXT_LEN = 65535
+_NONCE_LEN = 32
+_MAC_LEN = 32
+_MIN_PAYLOAD_LEN = (
+    1 + _NONCE_LEN + (2 + 32) + _MAC_LEN
+)  # version + nonce + min padded + mac
+_MAX_PAYLOAD_LEN = 1 + _NONCE_LEN + (2 + 65536) + _MAC_LEN
+
+
+class Nip44Error(Exception):
+    """Generic NIP-44 v2 envelope error. Subclasses distinguish failure modes."""
+
+
+class Nip44VersionError(Nip44Error):
+    """First payload byte was not 0x02. Could be a NIP-04 envelope, a v1 NIP-44, or garbage."""
+
+
+class Nip44MacError(Nip44Error):
+    """HMAC verification failed — payload was tampered, wrong conversation key, or corrupted in transit."""
+
+
+class Nip44LengthError(Nip44Error):
+    """Plaintext or payload length outside the spec-allowed range, or padding header lies."""
+
+
+# =============================================================================
+# Padding (NIP-44 v2)
+# =============================================================================
+
+
+def _calc_padded_len(plaintext_len: int) -> int:
+    """Per NIP-44 v2 padding scheme:
+    if L <= 32: padded_len = 32
+    else: chunk = max(32, next_power_2(L-1) // 8); padded_len = chunk * ((L-1) // chunk + 1)
+    """
+    if plaintext_len <= 32:
+        return 32
+    next_power = 1 << (plaintext_len - 1).bit_length()
+    chunk = max(32, next_power // 8)
+    return chunk * ((plaintext_len - 1) // chunk + 1)
+
+
+def _pad(plaintext: bytes) -> bytes:
+    """Prefix uint16_be length + plaintext + zero-fill to the NIP-44 v2 boundary."""
+    n = len(plaintext)
+    if n < _MIN_PLAINTEXT_LEN or n > _MAX_PLAINTEXT_LEN:
+        raise Nip44LengthError(
+            f"plaintext length {n} outside [{_MIN_PLAINTEXT_LEN}, {_MAX_PLAINTEXT_LEN}]"
+        )
+    padded_data_len = _calc_padded_len(n)
+    zeros = b"\x00" * (padded_data_len - n)
+    return struct.pack(">H", n) + plaintext + zeros
+
+
+def _unpad(padded: bytes) -> bytes:
+    """Strip the uint16_be length prefix and zero padding. Validates that the
+    declared length is consistent with the padded payload (rejects a forged
+    length prefix that would slice past the buffer or imply a different
+    padded_data_len than what we received)."""
+    if len(padded) < 2:
+        raise Nip44LengthError("padded payload too short to hold length prefix")
+    declared_len = struct.unpack(">H", padded[0:2])[0]
+    if declared_len < _MIN_PLAINTEXT_LEN or declared_len > _MAX_PLAINTEXT_LEN:
+        raise Nip44LengthError(f"declared plaintext length {declared_len} out of range")
+    if len(padded) != 2 + _calc_padded_len(declared_len):
+        raise Nip44LengthError(
+            f"padded buffer length {len(padded)} doesn't match the calculated padding "
+            f"for declared length {declared_len}"
+        )
+    return padded[2 : 2 + declared_len]
+
+
+# =============================================================================
+# Conversation + message-key derivation
+# =============================================================================
+
+
+def get_conversation_key(privkey_hex: str, pubkey_hex: str) -> bytes:
+    """Derive the per-pair stable conversation key (PRK) used for all messages
+    between sender (privkey) and recipient (pubkey).
+
+    Steps:
+        shared_x = ECDH(privkey, pubkey).x      # 32 bytes, x-coordinate
+        prk      = HKDF-extract(salt=b"nip44-v2", IKM=shared_x)
+
+    coincurve's `.multiply(secret).format(compressed=True)[1:]` strips the
+    leading 0x02/0x03 parity byte to return the raw x-coord — same trick
+    `lnbits.utils.nostr.encrypt_content` uses for NIP-04.
+    """
+    sender = coincurve.PrivateKey(bytes.fromhex(privkey_hex))
+    recipient_pub = coincurve.PublicKey(b"\x02" + bytes.fromhex(pubkey_hex))
+    shared_x = recipient_pub.multiply(sender.secret).format(compressed=True)[1:]
+    # HKDF-extract is HMAC-SHA256(key=salt, msg=ikm) per RFC 5869.
+    return hmac_stdlib.new(_HKDF_SALT, shared_x, hashlib.sha256).digest()
+
+
+def _derive_message_keys(
+    conversation_key: bytes, nonce: bytes
+) -> tuple[bytes, bytes, bytes]:
+    """Per-message key expansion: HKDF-expand(PRK=conversation_key, info=nonce, L=76).
+    Returns (chacha_key 32B, chacha_nonce 12B, hmac_key 32B)."""
+    hkdf = HKDFExpand(algorithm=hashes.SHA256(), length=76, info=nonce)
+    okm = hkdf.derive(conversation_key)
+    return okm[0:32], okm[32:44], okm[44:76]
+
+
+def _hmac_aad(hmac_key: bytes, nonce: bytes, ciphertext: bytes) -> bytes:
+    """HMAC-SHA256(key=hmac_key, msg=nonce || ciphertext). Returns 32-byte MAC."""
+    h = hmac.HMAC(hmac_key, hashes.SHA256())
+    h.update(nonce)
+    h.update(ciphertext)
+    return h.finalize()
+
+
+def _chacha20(key: bytes, nonce: bytes, data: bytes) -> bytes:
+    """ChaCha20 stream cipher (symmetric: encrypt == decrypt). Used both directions.
+
+    The `cryptography` lib's `algorithms.ChaCha20(key, nonce)` expects a
+    16-byte nonce arg: a 4-byte little-endian initial counter prefix +
+    12-byte actual nonce. NIP-44 v2 starts the counter at 0 and uses the
+    HKDF-derived 12-byte chacha_nonce, so we prefix four zero bytes here.
+    """
+    if len(nonce) != 12:
+        raise Nip44LengthError(
+            f"chacha_nonce must be 12 bytes (NIP-44 v2), got {len(nonce)}"
+        )
+    cipher = Cipher(algorithms.ChaCha20(key, b"\x00\x00\x00\x00" + nonce), mode=None)
+    return cipher.encryptor().update(data)
+
+
+# =============================================================================
+# Public API — low-level (nonce-controllable for testability)
+# =============================================================================
+
+
+def encrypt_with_conversation_key(
+    plaintext: str,
+    conversation_key: bytes,
+    *,
+    nonce: bytes | None = None,
+) -> str:
+    """Encrypt `plaintext` under a precomputed `conversation_key` (32B PRK).
+
+    `nonce` is 32 random bytes when omitted (the production path). Tests pass
+    it explicitly to assert pinned reference vectors.
+
+    Returns the base64-encoded payload string suitable as a Nostr event's
+    `content` field for kind-30078 (and any other kind that uses NIP-44 v2).
+    """
+    if nonce is None:
+        nonce = os.urandom(_NONCE_LEN)
+    elif len(nonce) != _NONCE_LEN:
+        raise Nip44LengthError(f"nonce must be exactly {_NONCE_LEN} bytes")
+
+    padded = _pad(plaintext.encode("utf-8"))
+    chacha_key, chacha_nonce, hmac_key = _derive_message_keys(conversation_key, nonce)
+    ciphertext = _chacha20(chacha_key, chacha_nonce, padded)
+    mac = _hmac_aad(hmac_key, nonce, ciphertext)
+    return base64.b64encode(bytes([_VERSION]) + nonce + ciphertext + mac).decode(
+        "ascii"
+    )
+
+
+def decrypt_with_conversation_key(payload_b64: str, conversation_key: bytes) -> str:
+    """Decrypt a NIP-44 v2 payload using a precomputed `conversation_key`.
+
+    Raises:
+        Nip44VersionError — payload's first byte isn't 0x02
+        Nip44LengthError — payload too short / too long / declared length lies
+        Nip44MacError — HMAC verification failed (tamper, wrong key, corruption)
+    """
+    try:
+        raw = base64.b64decode(payload_b64, validate=True)
+    except (
+        Exception
+    ) as exc:
+        raise Nip44LengthError(f"payload is not valid base64: {exc}") from exc
+
+    if len(raw) < _MIN_PAYLOAD_LEN or len(raw) > _MAX_PAYLOAD_LEN:
+        raise Nip44LengthError(f"payload length {len(raw)} outside valid range")
+    if raw[0] != _VERSION:
+        raise Nip44VersionError(f"unsupported NIP-44 version: 0x{raw[0]:02x}")
+
+    nonce = raw[1 : 1 + _NONCE_LEN]
+    mac_received = raw[-_MAC_LEN:]
+    ciphertext = raw[1 + _NONCE_LEN : -_MAC_LEN]
+
+    chacha_key, chacha_nonce, hmac_key = _derive_message_keys(conversation_key, nonce)
+    mac_expected = _hmac_aad(hmac_key, nonce, ciphertext)
+    # constant-time compare to avoid timing-leak in MAC verification
+    if not hmac_stdlib.compare_digest(mac_received, mac_expected):
+        raise Nip44MacError("HMAC verification failed")
+
+    padded = _chacha20(chacha_key, chacha_nonce, ciphertext)
+    plaintext_bytes = _unpad(padded)
+    return plaintext_bytes.decode("utf-8")
+
+
+# =============================================================================
+# Public API — high-level (pair-keyed, the call shape app code reaches for)
+# =============================================================================
+
+
+def encrypt_for(
+    plaintext: str,
+    sender_privkey_hex: str,
+    recipient_pubkey_hex: str,
+    *,
+    nonce: bytes | None = None,
+) -> str:
+    """Encrypt `plaintext` from the sender (holding the privkey) to the recipient
+    (identified by pubkey). The recipient can decrypt with `decrypt_from(
+        payload, recipient_privkey_hex, sender_pubkey_hex)` — symmetric on the
+    conversation key, which is the same derived value from either side."""
+    conversation_key = get_conversation_key(sender_privkey_hex, recipient_pubkey_hex)
+    return encrypt_with_conversation_key(plaintext, conversation_key, nonce=nonce)
+
+
+def decrypt_from(
+    payload_b64: str, recipient_privkey_hex: str, sender_pubkey_hex: str
+) -> str:
+    """Decrypt a payload that the recipient (holding the privkey) received from
+    the sender (identified by pubkey)."""
+    conversation_key = get_conversation_key(recipient_privkey_hex, sender_pubkey_hex)
+    return decrypt_with_conversation_key(payload_b64, conversation_key)
diff --git a/static/js/index.js b/static/js/index.js
index cdb493f..96b98ef 100644
--- a/static/js/index.js
+++ b/static/js/index.js
@@ -191,7 +191,30 @@ window.app = Vue.createApp({
         show: false,
         loading: false,
         machine: null,
-        settlements: []
+        settlements: [],
+        // Cassettes sub-tab state (#29 v1) — see openCassettePublishConfirm /
+        // submitCassettePublish methods + the cassettes panel in
+        // templates/satmachineadmin/index.html.
+        activeTab: 'settlements',
+        cassetteEdits: [], // editable working copy of cassette_configs rows
+        cassettesPristine: [], // last-known-clean snapshot for revert
+        cassettesLoading: false,
+        cassettesPublishing: false,
+        cassettesDirty: false,
+        cassettesError: null
+      },
+      cassettesTable: {
+        columns: [
+          {name: 'position', label: 'Bay', field: 'position', align: 'right'},
+          {name: 'denomination', label: 'Denomination', field: 'denomination', align: 'right'},
+          {name: 'count', label: 'Count', field: 'count', align: 'right'},
+          {name: 'state', label: 'ATM-reported', field: 'state_denomination', align: 'right'},
+          {name: 'updated_at', label: 'Updated', field: 'updated_at', align: 'left'}
+        ],
+        pagination: {rowsPerPage: 0} // hide pagination — cassette count is small
+      },
+      cassettePublishConfirm: {
+        show: false
       },
       partialDispenseDialog: {
         show: false,
@@ -741,6 +764,11 @@ window.app = Vue.createApp({
     async viewMachine(machine) {
       this.machineDetail.machine = machine
       this.machineDetail.settlements = []
+      this.machineDetail.cassetteEdits = []
+      this.machineDetail.cassettesPristine = []
+      this.machineDetail.cassettesDirty = false
+      this.machineDetail.cassettesError = null
+      this.machineDetail.activeTab = 'settlements'
       this.machineDetail.show = true
       await this.reloadMachineDetail()
     },
@@ -759,6 +787,102 @@ window.app = Vue.createApp({
       } finally {
         this.machineDetail.loading = false
       }
+      // Cassettes load in parallel; UI only renders them when the tab
+      // is active, but pre-loading means no flicker on tab switch.
+      await this.loadMachineCassettes()
+    },
+
+    // -----------------------------------------------------------------
+    // Cassette inventory (#29 v1)
+    // -----------------------------------------------------------------
+    async loadMachineCassettes() {
+      if (!this.machineDetail.machine) return
+      this.machineDetail.cassettesLoading = true
+      this.machineDetail.cassettesError = null
+      try {
+        const {data} = await LNbits.api.request(
+          'GET',
+          `${MACHINES_PATH}/${this.machineDetail.machine.id}/cassettes`
+        )
+        const rows = (data || []).map(row => ({...row, _dirty: false}))
+        this.machineDetail.cassetteEdits = rows
+        this.machineDetail.cassettesPristine = JSON.parse(JSON.stringify(rows))
+        this.machineDetail.cassettesDirty = false
+      } catch (e) {
+        this._notifyError(e, 'Failed to load cassettes')
+      } finally {
+        this.machineDetail.cassettesLoading = false
+      }
+    },
+
+    markCassetteDirty(row) {
+      // Find pristine match by position (the row identity) and compare;
+      // flip _dirty + overall dirty flag accordingly. Editable fields
+      // are denomination + count; position is the immutable row key.
+      const pristine = this.machineDetail.cassettesPristine.find(
+        p => p.position === row.position
+      )
+      row._dirty =
+        !pristine ||
+        Number(row.denomination) !== Number(pristine.denomination) ||
+        Number(row.count) !== Number(pristine.count)
+      this.machineDetail.cassettesDirty =
+        this.machineDetail.cassetteEdits.some(r => r._dirty)
+    },
+
+    revertCassetteEdits() {
+      this.machineDetail.cassetteEdits = JSON.parse(
+        JSON.stringify(this.machineDetail.cassettesPristine)
+      )
+      this.machineDetail.cassettesDirty = false
+      this.machineDetail.cassettesError = null
+    },
+
+    openCassettePublishConfirm() {
+      if (!this.machineDetail.cassettesDirty) return
+      this.machineDetail.cassettesError = null
+      this.cassettePublishConfirm.show = true
+    },
+
+    async submitCassettePublish() {
+      // Build the PublishCassettesPayload shape (v1.1, position-keyed):
+      //   { positions: { "<pos>": { denomination, count }, ... } }
+      // The API enforces the position set matches what's stored —
+      // since we only edit existing rows, this should always pass.
+      const positions = {}
+      for (const row of this.machineDetail.cassetteEdits) {
+        positions[String(row.position)] = {
+          denomination: Number(row.denomination),
+          count: Number(row.count)
+        }
+      }
+      const payload = {positions}
+      this.machineDetail.cassettesPublishing = true
+      try {
+        const {data} = await LNbits.api.request(
+          'POST',
+          `${MACHINES_PATH}/${this.machineDetail.machine.id}/cassettes/publish`,
+          null,
+          payload
+        )
+        const fresh = (data || []).map(r => ({...r, _dirty: false}))
+        this.machineDetail.cassetteEdits = fresh
+        this.machineDetail.cassettesPristine = JSON.parse(JSON.stringify(fresh))
+        this.machineDetail.cassettesDirty = false
+        this.cassettePublishConfirm.show = false
+        Quasar.Notify.create({
+          type: 'positive',
+          message: 'Cassette config published to ATM'
+        })
+      } catch (e) {
+        const detail =
+          (e && e.response && e.response.data && e.response.data.detail) ||
+          'Publish failed'
+        this.machineDetail.cassettesError = detail
+        this._notifyError(e, 'Publish failed')
+      } finally {
+        this.machineDetail.cassettesPublishing = false
+      }
     },
 
     settlementStatusColor(status) {
diff --git a/tasks.py b/tasks.py
index 7d77f0e..7f2a276 100644
--- a/tasks.py
+++ b/tasks.py
@@ -125,9 +125,7 @@ async def _handle_payment(payment: Payment) -> None:
     # stamp is missing, SettlementInvariantError on any range/sum
     # breach.
     super_config = await get_super_config()
-    super_fee_fraction = (
-        float(super_config.super_fee_fraction) if super_config else 0.0
-    )
+    super_fee_fraction = float(super_config.super_fee_fraction) if super_config else 0.0
     try:
         data = parse_settlement(
             machine=machine,
@@ -194,9 +192,7 @@ async def _handle_payment(payment: Payment) -> None:
     task.add_done_callback(_inflight_distributions.discard)
 
 
-async def _record_rejected(
-    payment: Payment, machine: Machine, exc: Exception
-) -> None:
+async def _record_rejected(payment: Payment, machine: Machine, exc: Exception) -> None:
     """Insert a minimal `dca_settlements` row with `status='rejected'` and
     the exception message for operator forensics.
 
@@ -237,3 +233,258 @@ async def _record_rejected(
         f"(machine={machine.machine_npub[:12]}..., "
         f"payment_hash={payment.payment_hash[:12]}...): {exc}"
     )
+
+
+# =============================================================================
+# Cassette bootstrap consumer (#29 v1)
+# =============================================================================
+# Subscribes to kind-30078 bitspire-cassettes-state:<atm_pubkey_hex> events
+# published by each active machine's ATM on first boot (lamassu-next#56's
+# bootstrap publish path). Decrypts the NIP-44 v2 content with the operator's
+# privkey + ATM sender pubkey, validates as PublishCassettesPayload, and
+# upserts cassette_configs via apply_bootstrap_state.
+#
+# v1 = one-shot per machine (ATM's meta.bootstrapPublishedAt makes the
+# publish idempotent on ATM-side restart; satmachineadmin's apply_bootstrap_
+# state dedups on state_event_id for relay re-delivery).
+#
+# v2 (separate issue) = continuous reverse-channel consumer with a
+# last_state_created_at watermark for reconciliation UI.
+#
+# Implementation: polls nostrclient.router.NostrRouter.received_subscription_
+# events keyed by our subscription_id. nostrclient's NostrRouter design is
+# per-WebSocket-client; the singleton dict it drains into is the only
+# server-side hook to consume events without standing up an in-process
+# websocket. The relay manager is the same singleton publish_to_atm uses,
+# so add_subscription registers a filter against the same relay pool.
+
+CASSETTE_BOOTSTRAP_SUB_ID = "satmachineadmin-cassette-bootstrap"
+_CASSETTE_POLL_INTERVAL_S = 2.0
+_CASSETTE_BACKOFF_S = 30.0  # when nostrclient isn't installed yet
+
+
+async def wait_for_cassette_state_events() -> None:
+    """Long-running task: subscribe to bitspire-cassettes-state events from
+    every active machine's ATM and upsert cassette_configs on receipt.
+
+    Pattern mirrors wait_for_paid_invoices (try/except wraps each event,
+    never lets the loop die). Re-derives the subscription filter on each
+    tick from the current active-machines list — newly-added machines
+    start receiving bootstrap events without an LNbits restart.
+
+    Soft-fail surfaces:
+      - nostrclient not installed → log + sleep _CASSETTE_BACKOFF_S
+        between retries (operator may install it later)
+      - inbound event fails sig-verify / decrypt / parse → log + skip
+        the event, continue the loop
+      - apply_bootstrap_state errors → log + skip
+    """
+    logger.info(
+        "satmachineadmin v2: cassette bootstrap consumer starting "
+        f"(sub_id={CASSETTE_BOOTSTRAP_SUB_ID})"
+    )
+    current_filter_key: str | None = None
+    while True:
+        try:
+            current_filter_key = await _cassette_consumer_tick(current_filter_key)
+            await asyncio.sleep(_CASSETTE_POLL_INTERVAL_S)
+        except _NostrclientUnavailable:
+            logger.warning(
+                "satmachineadmin: nostrclient extension not installed; "
+                f"cassette bootstrap consumer sleeping {_CASSETTE_BACKOFF_S}s "
+                "before retry. Install + activate nostrclient on this "
+                "LNbits instance."
+            )
+            current_filter_key = None
+            await asyncio.sleep(_CASSETTE_BACKOFF_S)
+        except Exception as exc:  # listener must never die
+            logger.error(
+                f"satmachineadmin: cassette consumer loop error (continuing): " f"{exc}"
+            )
+            await asyncio.sleep(_CASSETTE_POLL_INTERVAL_S)
+
+
+class _NostrclientUnavailable(Exception):
+    """Internal sentinel — nostrclient extension import failed. Caller
+    sleeps a backoff then retries; the operator may install nostrclient
+    at any time."""
+
+
+async def _cassette_consumer_tick(current_filter_key: str | None) -> str:
+    """Single iteration of the bootstrap-consumer loop. Returns the filter
+    key used this tick so the caller can detect filter-set changes.
+
+    Raises _NostrclientUnavailable if nostrclient can't be imported (the
+    outer loop backs off + retries).
+    """
+    try:
+        from nostrclient.router import (  # type: ignore[import-not-found]
+            NostrRouter,
+            nostr_client,
+        )
+    except ImportError as exc:
+        raise _NostrclientUnavailable() from exc
+
+    from .cassette_transport import build_state_d_tags_for_machines
+    from .crud import (
+        apply_bootstrap_state,
+        get_machine_by_atm_pubkey_hex,
+        list_all_active_machines,
+    )
+
+    machines = await list_all_active_machines()
+    d_tags = build_state_d_tags_for_machines(machines)
+    filter_key = ",".join(sorted(d_tags))
+
+    if filter_key != current_filter_key:
+        if d_tags:
+            filters = [{"kinds": [30078], "#d": d_tags}]
+            # nostrclient's add_subscription is typed as list[str] but the
+            # actual relay protocol accepts list[Filter-dict] — type ignore
+            # the upstream typing mismatch.
+            nostr_client.relay_manager.add_subscription(
+                CASSETTE_BOOTSTRAP_SUB_ID, filters  # type: ignore[arg-type]
+            )
+            logger.info(
+                "satmachineadmin: (re)registered cassette bootstrap "
+                f"subscription with {len(d_tags)} d-tag(s)"
+            )
+        else:
+            nostr_client.relay_manager.close_subscription(CASSETTE_BOOTSTRAP_SUB_ID)
+            logger.info(
+                "satmachineadmin: no active machines; closed cassette "
+                "bootstrap subscription"
+            )
+
+    inbound = NostrRouter.received_subscription_events.get(CASSETTE_BOOTSTRAP_SUB_ID)
+    if inbound:
+        while inbound:
+            event_message = inbound.pop(0)
+            try:
+                await _handle_cassette_state_event(
+                    event_message,
+                    get_machine_by_atm_pubkey_hex,
+                    apply_bootstrap_state,
+                )
+            except Exception as exc:
+                logger.warning(
+                    f"satmachineadmin: cassette state event handler "
+                    f"failed (skipping): {exc}"
+                )
+
+    return filter_key
+
+
+async def _handle_cassette_state_event(
+    event_message,
+    get_machine_by_atm_pubkey_hex,
+    apply_bootstrap_state,
+) -> None:
+    """Verify signature, resolve the operator's signer, decrypt via the
+    signer abstraction (bunker round-trip for RemoteBunkerSigner; direct
+    prvkey on the LocalSigner transitional fallback inside the transport
+    helper), parse, upsert.
+
+    Each step logs at WARNING (not ERROR) so a noisy attacker can't fill
+    the logs — this is data on a public relay, garbage is expected.
+
+    Two skip outcomes:
+      - Terminal (CassetteEventDecodeError / SignerUnavailable /
+        OperatorIdentityMissing / etc.): log + return. `apply_bootstrap_
+        state` is never called → `state_event_id` is not advanced →
+        same event would re-process on next poll cycle but the consumer's
+        WARN log surfaces the underlying issue immediately.
+      - Transient (CassetteEventTransientError): log at INFO (less noisy)
+        + return. Same retry-via-no-advance semantics, just less
+        alarming in the operator log feed.
+    """
+    import json as _json
+    from datetime import datetime as _datetime
+    from datetime import timezone as _timezone
+
+    from lnbits.utils.nostr import verify_event
+
+    from .cassette_transport import (
+        CassetteEventDecodeError,
+        CassetteEventTransientError,
+        CassetteTransportError,
+        _resolve_operator_signer,
+        decrypt_and_parse_state_event,
+    )
+
+    event_raw = event_message.event
+    if isinstance(event_raw, str):
+        event_obj = _json.loads(event_raw)
+    elif isinstance(event_raw, dict):
+        event_obj = event_raw
+    else:
+        logger.warning(
+            f"satmachineadmin: cassette event of unexpected type "
+            f"{type(event_raw).__name__}; skipping"
+        )
+        return
+
+    if not verify_event(event_obj):
+        logger.warning(
+            f"satmachineadmin: cassette state event sig verify failed "
+            f"(id={event_obj.get('id', '?')[:12]}...)"
+        )
+        return
+
+    sender_pubkey = event_obj.get("pubkey", "")
+    machine = await get_machine_by_atm_pubkey_hex(sender_pubkey)
+    if machine is None:
+        # Unknown sender — could be relay noise or an attacker. Don't
+        # treat as our problem.
+        logger.warning(
+            f"satmachineadmin: cassette state event from unknown ATM "
+            f"pubkey {sender_pubkey[:12]}... (not in dca_machines); "
+            "skipping"
+        )
+        return
+
+    try:
+        account, signer = await _resolve_operator_signer(machine.operator_user_id)
+    except CassetteTransportError as exc:
+        # OperatorIdentityMissing / SignerUnavailable — log + skip.
+        logger.warning(
+            f"satmachineadmin: can't resolve signer for operator "
+            f"{machine.operator_user_id[:8]}... (machine {machine.id}): "
+            f"{exc}"
+        )
+        return
+
+    try:
+        payload = await decrypt_and_parse_state_event(event_obj, account, signer)
+    except CassetteEventTransientError as exc:
+        logger.info(
+            f"satmachineadmin: cassette state event for machine {machine.id} "
+            f"hit a transient signer error (will retry next poll): {exc}"
+        )
+        return
+    except CassetteEventDecodeError as exc:
+        logger.warning(
+            f"satmachineadmin: cassette state event decode failed for "
+            f"machine {machine.id} (id={event_obj.get('id', '?')[:12]}...): "
+            f"{exc}"
+        )
+        return
+
+    event_id = event_obj.get("id", "")
+    created_at_unix = event_obj.get("created_at", 0)
+    event_created_at = _datetime.fromtimestamp(int(created_at_unix), tz=_timezone.utc)
+
+    applied = await apply_bootstrap_state(
+        machine.id, event_id, event_created_at, payload
+    )
+    if applied:
+        logger.info(
+            f"satmachineadmin: applied bootstrap state event {event_id[:12]}... "
+            f"to machine {machine.id} ({len(payload.positions)} cassettes)"
+        )
+    else:
+        # Replay: event_id already on file. Normal on relay reconnect.
+        logger.debug(
+            f"satmachineadmin: cassette state event {event_id[:12]}... "
+            f"already applied to machine {machine.id} (replay no-op)"
+        )
diff --git a/templates/satmachineadmin/index.html b/templates/satmachineadmin/index.html
index 6278ef9..8b3ddf3 100644
--- a/templates/satmachineadmin/index.html
+++ b/templates/satmachineadmin/index.html
@@ -818,7 +818,7 @@
           <q-btn flat dense round icon="refresh"
                  @click="reloadMachineDetail"
                  :loading="machineDetail.loading">
-            <q-tooltip>Reload settlements</q-tooltip>
+            <q-tooltip>Reload</q-tooltip>
           </q-btn>
           <q-btn flat dense round icon="close" v-close-popup>
             <q-tooltip>Close</q-tooltip>
@@ -845,7 +845,21 @@
 
           <q-separator class="q-mb-md"></q-separator>
 
-          <div class="row items-center q-mb-sm">
+          <q-tabs v-model="machineDetail.activeTab" dense
+                  align="left" class="text-grey-7"
+                  active-color="primary" indicator-color="primary"
+                  narrow-indicator>
+            <q-tab name="settlements" icon="receipt_long"
+                   label="Settlements"></q-tab>
+            <q-tab name="cassettes" icon="precision_manufacturing"
+                   label="Cassettes"></q-tab>
+          </q-tabs>
+          <q-separator></q-separator>
+
+          <q-tab-panels v-model="machineDetail.activeTab" animated>
+          <q-tab-panel name="settlements" class="q-px-none">
+
+          <div class="row items-center q-mt-md q-mb-sm">
             <div class="col">
               <h6 class="q-my-none">Settlements</h6>
               <p class="text-caption q-my-none" :style="{opacity: 0.7}">
@@ -959,10 +973,158 @@
               </q-tr>
             </template>
           </q-table>
+
+          </q-tab-panel>
+          <q-tab-panel name="cassettes" class="q-px-none">
+
+          <div class="row items-center q-mt-md q-mb-sm">
+            <div class="col">
+              <h6 class="q-my-none">Cassettes</h6>
+              <p class="text-caption q-my-none" :style="{opacity: 0.7}">
+                Per-cassette count and physical bay position. Denomination
+                set is hardware-determined (re-provision via atm-tui to
+                change). "Publish to ATM" encrypts + signs + sends the new
+                config to the machine via Nostr.
+              </p>
+            </div>
+            <div class="col-auto">
+              <q-btn flat dense icon="undo" label="Revert"
+                     :disable="!machineDetail.cassettesDirty"
+                     @click="revertCassetteEdits">
+                <q-tooltip>Discard unsaved edits</q-tooltip>
+              </q-btn>
+              <q-btn color="primary" icon="cloud_upload"
+                     label="Publish to ATM"
+                     :disable="!machineDetail.cassettesDirty"
+                     :loading="machineDetail.cassettesPublishing"
+                     @click="openCassettePublishConfirm"></q-btn>
+            </div>
+          </div>
+
+          <q-banner v-if="machineDetail.cassettesError"
+                    class="bg-red-1 text-grey-9 q-mb-md">
+            <template v-slot:avatar>
+              <q-icon name="warning" color="negative"></q-icon>
+            </template>
+            <span v-text="machineDetail.cassettesError"></span>
+          </q-banner>
+
+          <q-banner v-if="!machineDetail.cassetteEdits.length
+                          && !machineDetail.cassettesLoading"
+                    class="bg-blue-1 text-grey-9">
+            <template v-slot:avatar>
+              <q-icon name="hourglass_empty" color="blue"></q-icon>
+            </template>
+            Waiting for the ATM's bootstrap state event. Power on the ATM
+            and confirm it has reached the configured relay; cassette
+            rows will auto-populate on receipt.
+          </q-banner>
+
+          <q-table v-if="machineDetail.cassetteEdits.length"
+            dense flat
+            :rows="machineDetail.cassetteEdits"
+            row-key="position"
+            :columns="cassettesTable.columns"
+            :pagination="cassettesTable.pagination"
+            hide-pagination>
+            <template v-slot:body="props">
+              <q-tr :props="props"
+                    :style="props.row._dirty
+                            ? {boxShadow: 'inset 4px 0 0 0 #fdd835'}
+                            : {}">
+                <q-td key="position" class="text-right">
+                  <b v-text="'Bay ' + props.row.position"></b>
+                </q-td>
+                <q-td key="denomination" class="text-right">
+                  <q-input v-model.number="props.row.denomination"
+                           type="number" min="1" step="1" dense outlined
+                           :suffix="machineDetail.machine.fiat_code || ''"
+                           :style="{width: '140px', display: 'inline-block'}"
+                           @update:model-value="markCassetteDirty(props.row)"></q-input>
+                </q-td>
+                <q-td key="count" class="text-right">
+                  <q-input v-model.number="props.row.count" type="number"
+                           min="0" step="1" dense outlined
+                           :style="{width: '120px', display: 'inline-block'}"
+                           @update:model-value="markCassetteDirty(props.row)"></q-input>
+                </q-td>
+                <q-td key="state" class="text-right">
+                  <span v-if="props.row.state_denomination !== null"
+                        :style="{fontSize: '0.85em', opacity: 0.7}">
+                    <span v-text="props.row.state_denomination"></span>
+                    <span :style="{opacity: 0.6}"
+                          v-text="' ' + (machineDetail.machine.fiat_code || '')"></span>
+                    <span :style="{opacity: 0.6}"> · </span>
+                    <span v-text="'×' + props.row.state_count"></span>
+                  </span>
+                  <span v-else :style="{opacity: 0.4}">—</span>
+                </q-td>
+                <q-td key="updated_at">
+                  <span :style="{fontSize: '0.85em', opacity: 0.7}"
+                        v-text="formatTime(props.row.updated_at)"></span>
+                </q-td>
+              </q-tr>
+            </template>
+          </q-table>
+
+          </q-tab-panel>
+          </q-tab-panels>
         </q-card-section>
       </q-card>
     </q-dialog>
 
+    <!-- =============================================================== -->
+    <!-- CASSETTE PUBLISH CONFIRM DIALOG                                 -->
+    <!-- =============================================================== -->
+    <q-dialog v-model="cassettePublishConfirm.show" persistent>
+      <q-card :style="{minWidth: '480px', maxWidth: '95vw'}">
+        <q-card-section class="row items-center q-pb-none">
+          <div class="text-h6">Publish cassette config to ATM</div>
+          <q-space ></q-space>
+          <q-btn icon="close" flat round dense v-close-popup></q-btn>
+        </q-card-section>
+        <q-card-section>
+          <q-banner class="bg-orange-1 text-grey-9 q-mb-md">
+            <template v-slot:avatar>
+              <q-icon name="warning" color="warning"></q-icon>
+            </template>
+            <b>This publish will overwrite the ATM's currently-tracked
+            counts.</b> If the ATM has dispensed cash since your last
+            refill or count baseline, those decrements will be lost.
+            Publish only after a physical refill (a known total), not to
+            "tweak" counts mid-day. v2 reconciliation will replace this
+            modal with reconciled state display.
+          </q-banner>
+          <p class="q-mb-sm">Sending to ATM:</p>
+          <q-list dense bordered>
+            <q-item v-for="row in machineDetail.cassetteEdits"
+                    :key="row.position">
+              <q-item-section>
+                <q-item-label>
+                  <b v-text="'Bay ' + row.position"></b>
+                </q-item-label>
+              </q-item-section>
+              <q-item-section side>
+                <q-item-label caption>
+                  <b v-text="row.denomination + ' ' +
+                             (machineDetail.machine.fiat_code || '')"></b>
+                  · count
+                  <b v-text="row.count"></b>
+                </q-item-label>
+              </q-item-section>
+            </q-item>
+          </q-list>
+        </q-card-section>
+        <q-card-actions align="right">
+          <q-btn flat label="Cancel" v-close-popup></q-btn>
+          <q-btn color="primary"
+                 label="Publish to ATM"
+                 :loading="machineDetail.cassettesPublishing"
+                 @click="submitCassettePublish"></q-btn>
+        </q-card-actions>
+      </q-card>
+    </q-dialog>
+
     <!-- =============================================================== -->
     <!-- PARTIAL-DISPENSE DIALOG                                         -->
     <!-- =============================================================== -->
diff --git a/tests/test_cassette_configs.py b/tests/test_cassette_configs.py
new file mode 100644
index 0000000..08a7e00
--- /dev/null
+++ b/tests/test_cassette_configs.py
@@ -0,0 +1,220 @@
+"""
+Tests for the v1.1 cassette-config layer (aiolabs/satmachineadmin#29).
+
+Covers the pure pieces that don't need a live DB:
+  - Pydantic validator behaviour on PublishCassettesPayload + the row /
+    upsert models (position key coercion, integer ranges, multiple-same-
+    denomination payloads, wire-format round-trip)
+  - _should_apply_bootstrap_state dedup helper (extracted from
+    apply_bootstrap_state so the relay-re-delivery decision is testable
+    without a database round-trip)
+
+DB-touching tests (apply_bootstrap_state actually upserting, list-by-
+machine ordering, etc.) follow the project convention from
+test_deposit_currency.py: "Layer 2 is an endpoint-level behaviour better
+covered by an integration test against a running LNbits; tracked in #26
+as a follow-up." Smoke-tested manually via the dev container.
+
+Wire shape pivot from m007 → m008 is the v1.1 coordination point per
+coord-log 2026-05-30T18:30Z + 18:45Z: position is the row identity,
+denomination + count are operator-editable per row, multiple same-denom
+cassettes are valid.
+"""
+
+import pytest
+
+from ..crud import _should_apply_bootstrap_state
+from ..models import (
+    CassettePayloadRow,
+    PublishCassettesPayload,
+    UpsertCassetteConfigData,
+)
+
+# =============================================================================
+# PublishCassettesPayload — wire-shape validators
+# =============================================================================
+
+
+class TestPublishCassettesPayload:
+    """The kind-30078 content payload, bidirectional (operator→ATM and
+    ATM→operator share the shape). String JSON keys must coerce to int;
+    per-row int constraints enforced; multiple same-denom rows are valid."""
+
+    def test_happy_path_coerces_string_keys_to_int(self):
+        p = PublishCassettesPayload(
+            positions={
+                "1": {"denomination": 20, "count": 49},
+                "2": {"denomination": 50, "count": 100},
+            }
+        )
+        assert set(p.positions.keys()) == {1, 2}
+        assert p.positions[1].denomination == 20
+        assert p.positions[1].count == 49
+        assert p.positions[2].denomination == 50
+        assert p.positions[2].count == 100
+
+    def test_wire_dict_round_trip_restringifies_keys(self):
+        """to_wire_dict() must restringify position keys so the resulting
+        JSON is parseable by clients (including the ATM-side nostr-tools
+        NIP-44 v2 consumer per the byte-compat cross-test)."""
+        original = PublishCassettesPayload(
+            positions={
+                "1": {"denomination": 20, "count": 49},
+                "2": {"denomination": 50, "count": 100},
+            }
+        )
+        wire = original.to_wire_dict()
+        assert wire == {
+            "positions": {
+                "1": {"denomination": 20, "count": 49},
+                "2": {"denomination": 50, "count": 100},
+            }
+        }
+        # And the wire form round-trips back through the parser cleanly.
+        reparsed = PublishCassettesPayload(**wire)
+        assert reparsed.positions == original.positions
+
+    def test_accepts_multiple_same_denomination_cassettes(self):
+        """v1.1 operational case: real machines have N cassettes loaded
+        with the same denomination for cash-out throughput. The wire shape
+        must accept this, and we explicitly do NOT validate uniqueness on
+        denomination. Coord-log 2026-05-30T18:45Z bitspire response."""
+        p = PublishCassettesPayload(
+            positions={
+                "1": {"denomination": 20, "count": 100},
+                "2": {"denomination": 20, "count": 100},
+                "3": {"denomination": 50, "count": 50},
+                "4": {"denomination": 100, "count": 25},
+            }
+        )
+        assert len(p.positions) == 4
+        denoms = [row.denomination for row in p.positions.values()]
+        assert denoms.count(20) == 2  # two $20 cassettes
+        assert sorted(denoms) == [20, 20, 50, 100]
+
+    def test_rejects_non_int_position_key(self):
+        with pytest.raises(ValueError) as exc:
+            PublishCassettesPayload(positions={"abc": {"denomination": 20, "count": 1}})
+        assert "is not an int" in str(exc.value)
+
+    def test_rejects_non_positive_position(self):
+        with pytest.raises(ValueError) as exc:
+            PublishCassettesPayload(positions={"0": {"denomination": 20, "count": 1}})
+        assert "position must be > 0" in str(exc.value)
+
+    def test_rejects_negative_position(self):
+        with pytest.raises(ValueError) as exc:
+            PublishCassettesPayload(positions={"-1": {"denomination": 20, "count": 1}})
+        assert "position must be > 0" in str(exc.value)
+
+    def test_rejects_negative_count(self):
+        with pytest.raises(ValueError):
+            PublishCassettesPayload(positions={"1": {"denomination": 20, "count": -1}})
+
+    def test_rejects_zero_denomination(self):
+        with pytest.raises(ValueError):
+            PublishCassettesPayload(positions={"1": {"denomination": 0, "count": 49}})
+
+    def test_rejects_negative_denomination(self):
+        with pytest.raises(ValueError):
+            PublishCassettesPayload(positions={"1": {"denomination": -20, "count": 49}})
+
+    def test_allows_zero_count(self):
+        """An empty cassette is a legal state — operator must be able to
+        record `count=0` after a dispatcher pulled the cassette mid-day."""
+        p = PublishCassettesPayload(positions={"1": {"denomination": 20, "count": 0}})
+        assert p.positions[1].count == 0
+
+
+# =============================================================================
+# CassettePayloadRow — per-row int constraints
+# =============================================================================
+
+
+class TestCassettePayloadRow:
+    def test_happy_path(self):
+        row = CassettePayloadRow(denomination=20, count=49)
+        assert row.denomination == 20
+        assert row.count == 49
+
+    @pytest.mark.parametrize("bad_denom", [0, -1, -100])
+    def test_rejects_non_positive_denomination(self, bad_denom):
+        with pytest.raises(ValueError):
+            CassettePayloadRow(denomination=bad_denom, count=1)
+
+    def test_rejects_negative_count(self):
+        with pytest.raises(ValueError):
+            CassettePayloadRow(denomination=20, count=-1)
+
+
+# =============================================================================
+# UpsertCassetteConfigData — operator-edit form
+# =============================================================================
+
+
+class TestUpsertCassetteConfigData:
+    """Operator-driven row edit. Both fields optional; same int constraints
+    as the wire-format row but applied independently per-edit. Position is
+    NOT editable — it's the row's identity (the hardware bay number)."""
+
+    def test_partial_update_count_only(self):
+        d = UpsertCassetteConfigData(count=80)
+        assert d.count == 80
+        assert d.denomination is None
+
+    def test_partial_update_denomination_only(self):
+        """v1.1 operational case: operator records a cartridge swap at
+        refill — slot 1 was $20, dispatcher replaced with $50."""
+        d = UpsertCassetteConfigData(denomination=50)
+        assert d.denomination == 50
+        assert d.count is None
+
+    def test_empty_update_is_legal(self):
+        """An empty UpsertCassetteConfigData parses fine; the CRUD short-
+        circuits a no-op on empty payload (no SQL emitted)."""
+        d = UpsertCassetteConfigData()
+        assert d.count is None
+        assert d.denomination is None
+
+    def test_rejects_negative_count(self):
+        with pytest.raises(ValueError):
+            UpsertCassetteConfigData(count=-1)
+
+    def test_rejects_non_positive_denomination(self):
+        with pytest.raises(ValueError):
+            UpsertCassetteConfigData(denomination=0)
+
+
+# =============================================================================
+# _should_apply_bootstrap_state — relay re-delivery dedup
+# =============================================================================
+
+
+class TestShouldApplyBootstrapState:
+    """Pure-function dedup gate extracted from apply_bootstrap_state so the
+    decision is testable without a DB. Logic: apply if-and-only-if the
+    existing row's state_event_id differs from the incoming event_id.
+
+    In v1.1 the ATM publishes the bootstrap event exactly once per machine,
+    so this is sufficient for replay protection. v2 will need a
+    `last_state_created_at` watermark in addition (per bitspire's
+    `meta.lastKnownConfigCreatedAt` on the ATM side) — flagged in #29's
+    v2 forward-look section.
+    """
+
+    def test_applies_when_no_existing_row(self):
+        assert _should_apply_bootstrap_state(None, "new-event-id") is True
+
+    def test_applies_when_existing_event_id_differs(self):
+        assert _should_apply_bootstrap_state("old-event-id", "new-event-id") is True
+
+    def test_skips_when_existing_event_id_matches(self):
+        """The same bootstrap event re-delivered after a relay reconnect
+        or satmachineadmin restart should no-op, not re-upsert the same
+        rows (which would clobber any operator edits since)."""
+        assert _should_apply_bootstrap_state("same-event", "same-event") is False
+
+    def test_applies_when_existing_is_empty_string_and_incoming_is_id(self):
+        """Defensive — a sentinel empty-string existing_state_event_id
+        shouldn't block a real incoming event from applying."""
+        assert _should_apply_bootstrap_state("", "real-event-id") is True
diff --git a/tests/test_cassette_state_consumer.py b/tests/test_cassette_state_consumer.py
new file mode 100644
index 0000000..a0840bc
--- /dev/null
+++ b/tests/test_cassette_state_consumer.py
@@ -0,0 +1,485 @@
+"""
+Tests for the cassette bootstrap consumer's transport-decrypt path
+(`cassette_transport.decrypt_and_parse_state_event`) and d-tag construction.
+
+Post-PR-#38 migration (2026-05-31): the function takes an Account +
+NostrSigner instead of a raw privkey, and is async. Tests use:
+  - `_FakeBunkerSigner` — implements async `nip44_decrypt/encrypt` against
+    the hand-rolled `nip44` impl so tests don't need a live bunker.
+    Exercises the "happy" RemoteBunkerSigner path.
+  - `_FakeLocalSignerStub` — raises `SignerUnavailableError` from
+    `nip44_decrypt`, mimicking the post-#38 `LocalSigner` stub. Combined
+    with an Account that has `signer_type="LocalSigner"` + `prvkey`,
+    exercises the transitional fallback path in
+    `_nip44_decrypt_via_signer`.
+  - `_FakeRaisingSigner` — raises an arbitrary exception, used to
+    exercise the `NsecBunkerTimeoutError` → `CassetteEventTransientError`
+    and `NsecBunkerRpcError` → `CassetteEventDecodeError` mappings.
+
+Coroutines are driven via `asyncio.run` so no pytest-asyncio config is
+required. Matches the existing project test pattern (test_init.py
+demonstrates the project lacks an asyncio plugin in CI; using asyncio.run
+inside the test body sidesteps that without changing project config).
+
+Full handler tests (the dispatch through verify_event →
+get_machine_by_atm_pubkey_hex → apply_bootstrap_state) need a live LNbits
+DB; smoke-tested manually via the dev container per the project
+convention (see test_deposit_currency.py rationale).
+"""
+
+import asyncio
+import json
+from types import SimpleNamespace
+
+import coincurve
+import pytest
+from lnbits.core.services.nip46_bunker_client import (
+    NsecBunkerRpcError,
+    NsecBunkerTimeoutError,
+)
+from lnbits.core.signers.base import SignerUnavailableError
+
+from ..cassette_transport import (
+    CassetteEventDecodeError,
+    CassetteEventTransientError,
+    _atm_hex_pubkey,
+    _config_d_tag,
+    _state_d_tag,
+    build_state_d_tags_for_machines,
+    decrypt_and_parse_state_event,
+)
+from ..models import Machine, PublishCassettesPayload
+from ..nip44 import (
+    decrypt_from as _nip44_decrypt,
+)
+from ..nip44 import (
+    encrypt_with_conversation_key,
+    get_conversation_key,
+)
+
+# Canonical keys (integer 1 + integer 2, the paulmillr/nip44 reference pair).
+_OP_SEC = "00" * 31 + "01"
+_ATM_SEC = "00" * 31 + "02"
+
+
+def _pub_hex(sec_hex: str) -> str:
+    return (
+        coincurve.PrivateKey(bytes.fromhex(sec_hex))
+        .public_key.format(compressed=True)[1:]
+        .hex()
+    )
+
+
+_OP_PUB = _pub_hex(_OP_SEC)
+_ATM_PUB = _pub_hex(_ATM_SEC)
+
+
+# =============================================================================
+# Fake signers + account-shaped helper
+# =============================================================================
+
+
+class _FakeBunkerSigner:
+    """Test double for RemoteBunkerSigner — implements async nip44_*
+    against the hand-rolled `nip44` impl. Used to exercise the
+    "signer.nip44_decrypt returns successfully" path without standing up
+    a live bunker process."""
+
+    def __init__(self, privkey_hex: str):
+        self._privkey_hex = privkey_hex
+
+    @property
+    def pubkey(self) -> str:
+        return _pub_hex(self._privkey_hex)
+
+    def can_sign(self) -> bool:
+        return True
+
+    async def nip44_encrypt(self, plaintext: str, peer_pubkey_hex: str) -> str:
+        ck = get_conversation_key(self._privkey_hex, peer_pubkey_hex)
+        return encrypt_with_conversation_key(plaintext, ck)
+
+    async def nip44_decrypt(self, ciphertext: str, peer_pubkey_hex: str) -> str:
+        return _nip44_decrypt(ciphertext, self._privkey_hex, peer_pubkey_hex)
+
+
+class _FakeLocalSignerStub:
+    """Test double for the post-#38 LocalSigner stub — its nip44_* always
+    raises SignerUnavailableError. Combined with an Account that has
+    `signer_type='LocalSigner'` + `prvkey` populated, exercises the
+    transitional fallback in `_nip44_decrypt_via_signer` (which catches
+    the SignerUnavailableError and falls back to direct-prvkey via the
+    hand-rolled impl)."""
+
+    def can_sign(self) -> bool:
+        return True
+
+    async def nip44_encrypt(self, plaintext: str, peer_pubkey_hex: str) -> str:
+        raise SignerUnavailableError("LocalSigner does not implement nip44_encrypt")
+
+    async def nip44_decrypt(self, ciphertext: str, peer_pubkey_hex: str) -> str:
+        raise SignerUnavailableError("LocalSigner does not implement nip44_decrypt")
+
+
+class _FakeRaisingSigner:
+    """Test double that raises a configurable exception on nip44_decrypt.
+    Used to validate the bunker-error-mapping branches in
+    decrypt_and_parse_state_event."""
+
+    def __init__(self, exc):
+        self._exc = exc
+
+    def can_sign(self) -> bool:
+        return True
+
+    async def nip44_encrypt(self, plaintext: str, peer_pubkey_hex: str) -> str:
+        raise self._exc
+
+    async def nip44_decrypt(self, ciphertext: str, peer_pubkey_hex: str) -> str:
+        raise self._exc
+
+
+def _fake_account(
+    signer_type: str = "RemoteBunkerSigner",
+    prvkey: str | None = None,
+):
+    """Account-shaped duck-typed object. decrypt_and_parse_state_event +
+    _nip44_decrypt_via_signer only read `.signer_type` and `.prvkey`; the
+    rest is irrelevant."""
+    return SimpleNamespace(
+        id="test-operator",
+        pubkey=_OP_PUB,
+        prvkey=prvkey,
+        signer_type=signer_type,
+        signer_config=None,
+    )
+
+
+def _make_state_event(
+    payload: PublishCassettesPayload,
+    *,
+    atm_sec: str = _ATM_SEC,
+    op_pub: str = _OP_PUB,
+    atm_pub: str = _ATM_PUB,
+    event_id: str = "fake-event-id",
+    created_at: int = 1234567890,
+) -> dict:
+    """Build a state event the way bitspire's ATM publisher would. Skips
+    the sig-verify step (handler-level concern); the transport-decrypt
+    path doesn't depend on sig validity, only on conversation-key match."""
+    plaintext = json.dumps(payload.to_wire_dict(), separators=(",", ":"))
+    ck = get_conversation_key(atm_sec, op_pub)
+    content = encrypt_with_conversation_key(plaintext, ck)
+    return {
+        "kind": 30078,
+        "pubkey": atm_pub,
+        "content": content,
+        "tags": [
+            ["d", f"bitspire-cassettes-state:{atm_pub}"],
+            ["p", op_pub],
+        ],
+        "created_at": created_at,
+        "id": event_id,
+    }
+
+
+# =============================================================================
+# decrypt_and_parse_state_event — RemoteBunkerSigner happy path
+# =============================================================================
+
+
+class TestDecryptViaBunkerSigner:
+    """The expected production path post-#38: operator account is bunker-
+    backed, signer.nip44_decrypt routes through the bunker (mocked here
+    via _FakeBunkerSigner), and the wire payload round-trips cleanly."""
+
+    def test_happy_path_recovers_positions_keyed_payload(self):
+        payload = PublishCassettesPayload(
+            positions={
+                "1": {"denomination": 20, "count": 49},
+                "2": {"denomination": 50, "count": 100},
+            }
+        )
+        event = _make_state_event(payload)
+        account = _fake_account(signer_type="RemoteBunkerSigner")
+        signer = _FakeBunkerSigner(_OP_SEC)
+
+        recovered = asyncio.run(decrypt_and_parse_state_event(event, account, signer))
+        assert sorted(recovered.positions.keys()) == [1, 2]
+        assert recovered.positions[1].denomination == 20
+        assert recovered.positions[1].count == 49
+        assert recovered.positions[2].denomination == 50
+        assert recovered.positions[2].count == 100
+
+    def test_round_trips_multiple_same_denomination(self):
+        """v1.1 operational case (coord-log 2026-05-30T18:45Z) — multiple
+        bays carrying the same denomination."""
+        payload = PublishCassettesPayload(
+            positions={
+                "1": {"denomination": 20, "count": 100},
+                "2": {"denomination": 20, "count": 100},
+                "3": {"denomination": 20, "count": 100},
+                "4": {"denomination": 20, "count": 100},
+            }
+        )
+        event = _make_state_event(payload)
+        account = _fake_account()
+        signer = _FakeBunkerSigner(_OP_SEC)
+
+        recovered = asyncio.run(decrypt_and_parse_state_event(event, account, signer))
+        assert len(recovered.positions) == 4
+        for pos in (1, 2, 3, 4):
+            assert recovered.positions[pos].denomination == 20
+            assert recovered.positions[pos].count == 100
+
+
+# =============================================================================
+# decrypt_and_parse_state_event — LocalSigner transitional fallback
+# =============================================================================
+
+
+class TestDecryptViaLocalSignerFallback:
+    """When the operator account is still on LocalSigner (pre-bunker
+    migration), the LocalSigner stub raises SignerUnavailableError from
+    nip44_decrypt. `_nip44_decrypt_via_signer` catches that and falls
+    back to the hand-rolled impl using `account.prvkey`. Same wire
+    output; transitional until S7 retires LocalSigner accounts entirely."""
+
+    def test_localsigner_with_prvkey_decrypts_via_fallback(self):
+        payload = PublishCassettesPayload(
+            positions={"1": {"denomination": 20, "count": 49}}
+        )
+        event = _make_state_event(payload)
+        account = _fake_account(signer_type="LocalSigner", prvkey=_OP_SEC)
+        signer = _FakeLocalSignerStub()
+
+        recovered = asyncio.run(decrypt_and_parse_state_event(event, account, signer))
+        assert recovered.positions[1].denomination == 20
+        assert recovered.positions[1].count == 49
+
+    def test_localsigner_without_prvkey_raises_decode_error(self):
+        """A LocalSigner account whose prvkey field is None (impossible
+        in practice — LocalSigner requires prvkey at provision time, but
+        defensive in case the row is corrupt) should surface as a
+        decode error, not silently succeed."""
+        payload = PublishCassettesPayload(
+            positions={"1": {"denomination": 20, "count": 49}}
+        )
+        event = _make_state_event(payload)
+        account = _fake_account(signer_type="LocalSigner", prvkey=None)
+        signer = _FakeLocalSignerStub()
+
+        with pytest.raises(CassetteEventDecodeError):
+            asyncio.run(decrypt_and_parse_state_event(event, account, signer))
+
+    def test_clientonlysigner_raises_decode_error(self):
+        """ClientSideOnlySigner has no server-side decrypt path at all;
+        falling back to direct-prvkey is also impossible (no prvkey).
+        Surface as a decode error so the consumer logs + skips."""
+        payload = PublishCassettesPayload(
+            positions={"1": {"denomination": 20, "count": 49}}
+        )
+        event = _make_state_event(payload)
+        account = _fake_account(signer_type="ClientSideOnlySigner", prvkey=None)
+        signer = _FakeLocalSignerStub()  # behaves the same way: raises
+
+        with pytest.raises(CassetteEventDecodeError):
+            asyncio.run(decrypt_and_parse_state_event(event, account, signer))
+
+
+# =============================================================================
+# decrypt_and_parse_state_event — bunker error mapping
+# =============================================================================
+
+
+class TestBunkerErrorMapping:
+    """The post-#38 error hierarchy splits transient (bunker partitioned)
+    from terminal (bunker policy reject, MAC failure). Consumer behaves
+    differently — transient retries, terminal logs + skips. Validate the
+    mapping from NsecBunker* exceptions to our CassetteEvent* types."""
+
+    def test_timeout_maps_to_transient_error(self):
+        """Bunker unreachable → NsecBunkerTimeoutError → caller-visible
+        CassetteEventTransientError. Consumer treats this as retry-
+        eligible (don't advance state_event_id)."""
+        payload = PublishCassettesPayload(
+            positions={"1": {"denomination": 20, "count": 49}}
+        )
+        event = _make_state_event(payload)
+        account = _fake_account()
+        signer = _FakeRaisingSigner(NsecBunkerTimeoutError("bunker unreachable"))
+        with pytest.raises(CassetteEventTransientError):
+            asyncio.run(decrypt_and_parse_state_event(event, account, signer))
+
+    def test_rpc_reject_maps_to_decode_error(self):
+        """Bunker rejected the RPC (policy / MAC / config) →
+        NsecBunkerRpcError → caller-visible CassetteEventDecodeError.
+        Terminal — retrying won't help."""
+        payload = PublishCassettesPayload(
+            positions={"1": {"denomination": 20, "count": 49}}
+        )
+        event = _make_state_event(payload)
+        account = _fake_account()
+        signer = _FakeRaisingSigner(
+            NsecBunkerRpcError("bunker policy reject: kind 30078 not authorised")
+        )
+        with pytest.raises(CassetteEventDecodeError):
+            asyncio.run(decrypt_and_parse_state_event(event, account, signer))
+
+
+# =============================================================================
+# decrypt_and_parse_state_event — payload + envelope validation
+# =============================================================================
+
+
+class TestPayloadValidation:
+    """Errors that originate at the parse layer (post-decrypt), not the
+    signer. Same set as pre-migration — covered through the bunker-signer
+    path since LocalSigner is going away."""
+
+    def test_tampered_content_rejected(self):
+        payload = PublishCassettesPayload(
+            positions={"1": {"denomination": 20, "count": 49}}
+        )
+        event = _make_state_event(payload)
+        event["content"] = event["content"][:-2] + "AA"
+        account = _fake_account()
+        signer = _FakeBunkerSigner(_OP_SEC)
+        with pytest.raises(CassetteEventDecodeError):
+            asyncio.run(decrypt_and_parse_state_event(event, account, signer))
+
+    def test_wrong_signer_privkey_rejected(self):
+        """Wrong privkey on the signer → wrong conversation key → MAC
+        verification fails inside nip44_decrypt → surfaces as decode
+        error (via the hand-rolled Nip44Error since this is the fake
+        bunker signer; in production the bunker would raise
+        NsecBunkerRpcError which also maps to CassetteEventDecodeError)."""
+        payload = PublishCassettesPayload(
+            positions={"1": {"denomination": 20, "count": 49}}
+        )
+        event = _make_state_event(payload)
+        account = _fake_account()
+        wrong_sec = "00" * 31 + "03"
+        signer = _FakeBunkerSigner(wrong_sec)
+        with pytest.raises(CassetteEventDecodeError):
+            asyncio.run(decrypt_and_parse_state_event(event, account, signer))
+
+    def test_missing_content_rejected(self):
+        event = _make_state_event(
+            PublishCassettesPayload(positions={"1": {"denomination": 20, "count": 49}})
+        )
+        del event["content"]
+        account = _fake_account()
+        signer = _FakeBunkerSigner(_OP_SEC)
+        with pytest.raises(CassetteEventDecodeError):
+            asyncio.run(decrypt_and_parse_state_event(event, account, signer))
+
+    def test_missing_pubkey_rejected(self):
+        event = _make_state_event(
+            PublishCassettesPayload(positions={"1": {"denomination": 20, "count": 49}})
+        )
+        del event["pubkey"]
+        account = _fake_account()
+        signer = _FakeBunkerSigner(_OP_SEC)
+        with pytest.raises(CassetteEventDecodeError):
+            asyncio.run(decrypt_and_parse_state_event(event, account, signer))
+
+    def test_decrypted_garbage_json_rejected(self):
+        """If plaintext decrypts cleanly but isn't valid JSON, surface
+        as decode error (not crash the consumer loop)."""
+        ck = get_conversation_key(_ATM_SEC, _OP_PUB)
+        event = {
+            "kind": 30078,
+            "pubkey": _ATM_PUB,
+            "content": encrypt_with_conversation_key("definitely not json", ck),
+            "tags": [],
+            "created_at": 0,
+            "id": "x",
+        }
+        account = _fake_account()
+        signer = _FakeBunkerSigner(_OP_SEC)
+        with pytest.raises(CassetteEventDecodeError):
+            asyncio.run(decrypt_and_parse_state_event(event, account, signer))
+
+    def test_decrypted_wrong_shape_rejected(self):
+        """Well-formed JSON but missing 'positions' → payload-shape
+        validation failure."""
+        ck = get_conversation_key(_ATM_SEC, _OP_PUB)
+        event = {
+            "kind": 30078,
+            "pubkey": _ATM_PUB,
+            "content": encrypt_with_conversation_key('{"wrong_field": 42}', ck),
+            "tags": [],
+            "created_at": 0,
+            "id": "x",
+        }
+        account = _fake_account()
+        signer = _FakeBunkerSigner(_OP_SEC)
+        with pytest.raises(CassetteEventDecodeError):
+            asyncio.run(decrypt_and_parse_state_event(event, account, signer))
+
+
+# =============================================================================
+# d-tag construction — unchanged by the migration, kept as regression guard
+# =============================================================================
+
+
+class TestDTagConstruction:
+    """The `<m>` placeholder in d-tags = ATM hex pubkey (load-bearing per
+    coord-log 2026-05-30T11:50Z). These tests pin the canonical
+    substitution so a refactor can't silently break wire compatibility."""
+
+    def _machine(self, npub: str, id_: str = "m1") -> Machine:
+        from datetime import datetime, timezone
+
+        now = datetime.now(timezone.utc)
+        return Machine(
+            id=id_,
+            operator_user_id="op1",
+            machine_npub=npub,
+            wallet_id="w1",
+            name=None,
+            location=None,
+            fiat_code="EUR",
+            is_active=True,
+            created_at=now,
+            updated_at=now,
+        )
+
+    def test_atm_hex_pubkey_from_hex_storage(self):
+        assert _atm_hex_pubkey(self._machine(_ATM_PUB)) == _ATM_PUB
+
+    def test_atm_hex_pubkey_lowercases_uppercase_hex(self):
+        assert _atm_hex_pubkey(self._machine(_ATM_PUB.upper())) == _ATM_PUB
+
+    def test_atm_hex_pubkey_canonicalises_bech32_to_hex(self):
+        from lnbits.utils.nostr import hex_to_npub
+
+        npub_bech32 = hex_to_npub(_ATM_PUB)
+        assert _atm_hex_pubkey(self._machine(npub_bech32)) == _ATM_PUB
+
+    def test_config_d_tag_uses_hex_pubkey_not_id(self):
+        """REGRESSION GUARD: d-tag must contain the ATM hex pubkey, NOT
+        the internal machine UUID."""
+        m = self._machine(_ATM_PUB, id_="some-uuid-not-the-pubkey")
+        d_tag = _config_d_tag(_atm_hex_pubkey(m))
+        assert d_tag == f"bitspire-cassettes:{_ATM_PUB}"
+        assert "some-uuid" not in d_tag
+
+    def test_state_d_tag_uses_hex_pubkey_not_id(self):
+        m = self._machine(_ATM_PUB, id_="some-uuid-not-the-pubkey")
+        d_tag = _state_d_tag(_atm_hex_pubkey(m))
+        assert d_tag == f"bitspire-cassettes-state:{_ATM_PUB}"
+        assert "some-uuid" not in d_tag
+
+    def test_build_state_d_tags_for_machines(self):
+        atm2_pub = _pub_hex("00" * 31 + "03")
+        machines = [
+            self._machine(_ATM_PUB, id_="m1"),
+            self._machine(atm2_pub, id_="m2"),
+        ]
+        tags = build_state_d_tags_for_machines(machines)
+        assert tags == [
+            f"bitspire-cassettes-state:{_ATM_PUB}",
+            f"bitspire-cassettes-state:{atm2_pub}",
+        ]
diff --git a/tests/test_nip44_v2.py b/tests/test_nip44_v2.py
new file mode 100644
index 0000000..31f996b
--- /dev/null
+++ b/tests/test_nip44_v2.py
@@ -0,0 +1,390 @@
+"""
+Tests for the hand-rolled NIP-44 v2 implementation in `nip44.py`.
+
+Three layers of validation, ordered by trust:
+  1. Pinned reference vector from the canonical paulmillr/nip44 test suite —
+     the conversation_key for (sec=1, sec=2) is widely-published as
+     c41c775356fd92eadc63ff5a0dc1da211b268cbea22316767095b2871ea1412d. If
+     our get_conversation_key() ever drifts from that value, the impl is
+     broken at the key-derivation layer.
+  2. Round-trip + tamper detection — verifies the encrypt/decrypt loop
+     under random nonces, catches HMAC + version + padding tampering.
+  3. Cross-test (TBD) — bitspire will post one sample event encrypted on
+     their nostr-tools side to the coord log; test_decrypts_bitspire_sample
+     wires it as a fixture and asserts byte-compatibility with the
+     nostr-tools NIP-44 v2 impl. Placeholder stub until the sample lands.
+"""
+
+import base64
+
+import coincurve
+import pytest
+
+from ..nip44 import (
+    Nip44LengthError,
+    Nip44MacError,
+    Nip44VersionError,
+    _calc_padded_len,
+    decrypt_from,
+    decrypt_with_conversation_key,
+    encrypt_for,
+    encrypt_with_conversation_key,
+    get_conversation_key,
+)
+
+
+# Helper: derive a compressed-x-coord pubkey hex string from a secret hex.
+def _pub_hex(sec_hex: str) -> str:
+    return (
+        coincurve.PrivateKey(bytes.fromhex(sec_hex))
+        .public_key.format(compressed=True)[1:]
+        .hex()
+    )
+
+
+# Canonical test keys widely used across NIP-44 reference vectors.
+_SEC_ONE = "00" * 31 + "01"  # integer 1
+_SEC_TWO = "00" * 31 + "02"  # integer 2
+_PUB_ONE = _pub_hex(_SEC_ONE)
+_PUB_TWO = _pub_hex(_SEC_TWO)
+
+
+# =============================================================================
+# Layer 1 — pinned reference vector (paulmillr/nip44)
+# =============================================================================
+
+
+class TestConversationKeyReferenceVector:
+    """Pinned reference vector from the canonical NIP-44 v2 test suite
+    (paulmillr/nip44). If get_conversation_key drifts from this value we
+    have a key-derivation regression — fail loudly."""
+
+    REFERENCE_CK_HEX = (
+        "c41c775356fd92eadc63ff5a0dc1da211b268cbea22316767095b2871ea1412d"
+    )
+
+    def test_sec_one_pub_two(self):
+        ck = get_conversation_key(_SEC_ONE, _PUB_TWO)
+        assert ck.hex() == self.REFERENCE_CK_HEX
+
+    def test_sec_two_pub_one_is_symmetric(self):
+        """Conversation key is symmetric: ck(privA, pubB) == ck(privB, pubA).
+        Both sides of a NIP-44 conversation derive the identical PRK; this
+        is what lets the recipient decrypt with their own privkey + the
+        sender's pubkey."""
+        ck_ab = get_conversation_key(_SEC_ONE, _PUB_TWO)
+        ck_ba = get_conversation_key(_SEC_TWO, _PUB_ONE)
+        assert ck_ab == ck_ba
+
+
+# =============================================================================
+# Layer 2 — round-trip + tamper detection
+# =============================================================================
+
+
+class TestRoundTrip:
+    """Encrypt then decrypt under the high-level pair-keyed API."""
+
+    @pytest.mark.parametrize(
+        "plaintext",
+        [
+            "a",  # 1 byte (minimum)
+            "hello, nip44 v2",  # short
+            "x" * 32,  # exactly the small-payload boundary
+            "x" * 33,  # just over
+            "y" * 1000,  # medium
+            "z" * 5000,  # large
+            '{"denominations": {"20": {"position": 1, "count": 49}}}',  # realistic
+        ],
+    )
+    def test_round_trip_various_lengths(self, plaintext):
+        payload = encrypt_for(plaintext, _SEC_ONE, _PUB_TWO)
+        recovered = decrypt_from(payload, _SEC_TWO, _PUB_ONE)
+        assert recovered == plaintext
+
+    def test_payloads_are_unique_under_random_nonce(self):
+        """Same plaintext + same key pair should produce different payloads
+        each time because the nonce is fresh CSPRNG bytes. Catches a
+        regression where the nonce is accidentally pinned."""
+        plaintext = "the same message"
+        p1 = encrypt_for(plaintext, _SEC_ONE, _PUB_TWO)
+        p2 = encrypt_for(plaintext, _SEC_ONE, _PUB_TWO)
+        assert p1 != p2
+        assert decrypt_from(p1, _SEC_TWO, _PUB_ONE) == plaintext
+        assert decrypt_from(p2, _SEC_TWO, _PUB_ONE) == plaintext
+
+    def test_pinned_nonce_is_deterministic(self):
+        """Same plaintext + same key pair + same nonce = byte-identical
+        payload. Regression-locks the chacha20 + hmac chain."""
+        ck = get_conversation_key(_SEC_ONE, _PUB_TWO)
+        nonce = bytes(32)  # 32 zero bytes
+        p1 = encrypt_with_conversation_key("a", ck, nonce=nonce)
+        p2 = encrypt_with_conversation_key("a", ck, nonce=nonce)
+        assert p1 == p2
+        assert decrypt_with_conversation_key(p1, ck) == "a"
+
+
+class TestTamperDetection:
+    """HMAC-SHA256 verification catches tampered envelopes. The cryptographic
+    construction depends on this — if HMAC verification ever no-ops, a
+    relay-MITM could forge ATM state events."""
+
+    def _payload(self) -> str:
+        return encrypt_for("important message", _SEC_ONE, _PUB_TWO)
+
+    def test_flipped_mac_byte_rejected(self):
+        raw = bytearray(base64.b64decode(self._payload()))
+        raw[-1] ^= 0x01
+        tampered = base64.b64encode(bytes(raw)).decode("ascii")
+        with pytest.raises(Nip44MacError):
+            decrypt_from(tampered, _SEC_TWO, _PUB_ONE)
+
+    def test_flipped_ciphertext_byte_rejected(self):
+        raw = bytearray(base64.b64decode(self._payload()))
+        # Flip a byte in the middle of the ciphertext segment
+        # (version[1] + nonce[32..32] + ciphertext[33..-32] + mac[-32..])
+        ct_start = 1 + 32
+        raw[ct_start + 5] ^= 0x01
+        tampered = base64.b64encode(bytes(raw)).decode("ascii")
+        with pytest.raises(Nip44MacError):
+            decrypt_from(tampered, _SEC_TWO, _PUB_ONE)
+
+    def test_flipped_nonce_byte_rejected(self):
+        raw = bytearray(base64.b64decode(self._payload()))
+        # Nonce starts at byte 1 (after version)
+        raw[1] ^= 0x01
+        tampered = base64.b64encode(bytes(raw)).decode("ascii")
+        with pytest.raises(Nip44MacError):
+            decrypt_from(tampered, _SEC_TWO, _PUB_ONE)
+
+    def test_wrong_recipient_privkey_rejected(self):
+        """The MAC is derived from the conversation key, so a wrong
+        recipient privkey produces a different conversation key →
+        different hmac_key → MAC verification fails. (Doesn't decrypt
+        to garbage; fails fast.)"""
+        sec_three = "00" * 31 + "03"
+        with pytest.raises(Nip44MacError):
+            decrypt_from(self._payload(), sec_three, _PUB_ONE)
+
+
+class TestVersionRejection:
+    def test_v1_byte_rejected(self):
+        raw = bytearray(base64.b64decode(encrypt_for("x", _SEC_ONE, _PUB_TWO)))
+        raw[0] = 0x01
+        bad = base64.b64encode(bytes(raw)).decode("ascii")
+        with pytest.raises(Nip44VersionError):
+            decrypt_from(bad, _SEC_TWO, _PUB_ONE)
+
+    def test_unknown_version_byte_rejected(self):
+        raw = bytearray(base64.b64decode(encrypt_for("x", _SEC_ONE, _PUB_TWO)))
+        raw[0] = 0xFF
+        bad = base64.b64encode(bytes(raw)).decode("ascii")
+        with pytest.raises(Nip44VersionError):
+            decrypt_from(bad, _SEC_TWO, _PUB_ONE)
+
+
+class TestLengthGuards:
+    def test_empty_plaintext_rejected(self):
+        with pytest.raises(Nip44LengthError):
+            encrypt_for("", _SEC_ONE, _PUB_TWO)
+
+    def test_plaintext_at_max_length_accepted(self):
+        plaintext = "x" * 65535
+        payload = encrypt_for(plaintext, _SEC_ONE, _PUB_TWO)
+        assert decrypt_from(payload, _SEC_TWO, _PUB_ONE) == plaintext
+
+    def test_plaintext_over_max_rejected(self):
+        with pytest.raises(Nip44LengthError):
+            encrypt_for("x" * 65536, _SEC_ONE, _PUB_TWO)
+
+    def test_invalid_base64_payload_rejected(self):
+        with pytest.raises(Nip44LengthError):
+            decrypt_from("not!!!base64@@@", _SEC_TWO, _PUB_ONE)
+
+    def test_payload_too_short_rejected(self):
+        # 50 bytes is well under the 99-byte minimum
+        too_short = base64.b64encode(b"\x02" + b"\x00" * 49).decode("ascii")
+        with pytest.raises(Nip44LengthError):
+            decrypt_from(too_short, _SEC_TWO, _PUB_ONE)
+
+
+class TestPaddingFormula:
+    """Spot-check the _calc_padded_len formula against hand-computed cases.
+    Locks in the NIP-44 v2 padding scheme so a refactor can't silently
+    break wire compatibility (which would only surface as cross-impl
+    decryption failures — exactly what test_decrypts_bitspire_sample is
+    meant to catch end-to-end, but a unit test here is cheaper)."""
+
+    @pytest.mark.parametrize(
+        "plaintext_len,expected_padded",
+        [
+            (1, 32),  # <= 32 → 32
+            (16, 32),
+            (32, 32),
+            (33, 64),  # > 32 → next chunk
+            (64, 64),
+            (
+                65,
+                96,
+            ),  # chunk = 32 for L=65 (next_power(64) = 64; 64//8 = 8; max(32, 8) = 32)
+            (100, 128),
+            (128, 128),
+            # L=129: next_power(128) = 1<<8 = 256; chunk = max(32, 256//8) = 32;
+            # padded = 32 * (128//32 + 1) = 32 * 5 = 160.
+            (129, 160),
+            (256, 256),  # chunk = 32 for L=256 (next_power(255)=256; max(32, 32) = 32)
+            (257, 320),
+            (
+                1000,
+                1024,
+            ),  # chunk = 128 for L=1000 (next_power(999)=1024; max(32, 128) = 128)
+        ],
+    )
+    def test_calc_padded_len(self, plaintext_len, expected_padded):
+        assert _calc_padded_len(plaintext_len) == expected_padded
+
+
+# =============================================================================
+# Layer 3 — byte-compat cross-test against nostr-tools (bitspire's impl)
+# =============================================================================
+
+
+# -----------------------------------------------------------------------------
+# Bitspire-side v1.1 fixture, posted to ~/dev/coordination/log.md at
+# 2026-05-30T19:00Z. Positions-keyed wire shape per the v1.1 redesign
+# (18:30Z + 18:45Z); intentionally includes two positions sharing
+# denomination=20 to exercise the multi-same-denom round-trip on our
+# decrypt + payload-validate path. Throwaway keypairs (one-shot, never
+# sign anything else) — safe to embed verbatim.
+# Generated by apps/machine/src/services/operator-config.ts-shape code
+# path using the @bitSpire/nostr-client encryptContentV2 +
+# createSignedEvent helpers (same code the production bootstrap publish
+# uses). Round-tripped on bitspire side via decryptContentV2 before posting.
+# -----------------------------------------------------------------------------
+
+_BITSPIRE_FIXTURE = {
+    "atm_keypair": {
+        "privkey_hex": (
+            "814e6188d017102bbf301ba5b38fba95b2556dc79a60df4cd50605c4593578e6"
+        ),
+        "pubkey_hex": (
+            "217bdc9a65b571c4d9b59da6227a7aa6ca5bbfd5280af791417c57a79d92852b"
+        ),
+    },
+    "operator_keypair": {
+        "privkey_hex": (
+            "cca7dd9fe4874f6b9f3f3fae21648da686b7e714bfd4786e8fa8745933fd3185"
+        ),
+        "pubkey_hex": (
+            "49bd8e615769f8b6a5aa8ce9617b919996abecf234599ba196789461cf239146"
+        ),
+    },
+    "expected_plaintext": {
+        "positions": {
+            "1": {"denomination": 20, "count": 49},
+            "2": {"denomination": 20, "count": 38},
+            "3": {"denomination": 50, "count": 100},
+        },
+    },
+    "event": {
+        "kind": 30078,
+        "content": (
+            "AqOHsCcjN2W8L/Cx0uH+n++VA13W+wy7z1EcuuNX49sSagelX2lI0HEKyd+ActOc"
+            "iaPsHrp9ecJTkEZOD86ioldbLbEVColJwK4g1uVZSbpDeqRe+97woxVDqPnzj507"
+            "tFaVLF/dRmda+oKHUzkVPhE4PHQJzp9Fqji38J3nU6N68qo7KOt3qg1nSy5eDfAu"
+            "zt7djRBx63+/veub0rWTMMQLBgci8+Ms6Y+Zb1mki3L6NWuIR0Or+8DhcD+ZJiOu"
+            "WTcx"
+        ),
+        "tags": [
+            [
+                "d",
+                "bitspire-cassettes-state:"
+                "217bdc9a65b571c4d9b59da6227a7aa6ca5bbfd5280af791417c57a79d92852b",
+            ],
+            [
+                "p",
+                "49bd8e615769f8b6a5aa8ce9617b919996abecf234599ba196789461cf239146",
+            ],
+        ],
+        "created_at": 1780173222,
+        "pubkey": ("217bdc9a65b571c4d9b59da6227a7aa6ca5bbfd5280af791417c57a79d92852b"),
+        "id": ("72c09f333386dd4ad6125f8c69823824eea50d8091b694458bcd60701517eece"),
+        "sig": (
+            "07ecafacf0169f074e564a999ee1c31446930b43391d007c4a1f9ef7ad890d6c"
+            "2aa6e3ecc5318edeb5748fbd64c7ca33407099a97154e2ff7e0c626e48d71925"
+        ),
+    },
+}
+
+
+class TestBitspireCrossTest:
+    """Byte-compat cross-test between our hand-rolled NIP-44 v2 (`nip44.py`)
+    and the nostr-tools NIP-44 v2 impl that bitspire uses on the ATM side
+    (via @bitSpire/nostr-client). If these tests pass, the wire format
+    agrees across both implementations and the joint round-trip (operator
+    publish → ATM apply / ATM bootstrap → operator consume) is byte-safe.
+    If any fail, the spec ambiguity surfaces before sintra ships."""
+
+    def test_decrypts_bitspire_sample_event(self):
+        """The load-bearing assertion: our `decrypt_from` recovers the
+        expected `{"positions": {...}}` plaintext from bitspire's encrypted
+        event content. v1.1 fixture intentionally exercises the multi-same-
+        denomination round-trip (positions 1 + 2 both hold $20)."""
+        import json
+
+        event = _BITSPIRE_FIXTURE["event"]
+        operator_privkey = _BITSPIRE_FIXTURE["operator_keypair"]["privkey_hex"]
+
+        from ..nip44 import decrypt_from
+
+        plaintext = decrypt_from(
+            event["content"],
+            operator_privkey,
+            event["pubkey"],
+        )
+        payload = json.loads(plaintext)
+        assert payload == _BITSPIRE_FIXTURE["expected_plaintext"]
+
+        # v1.1 invariant: two positions can carry the same denomination.
+        # Pin it explicitly so a future "fix" that re-introduces denom-
+        # uniqueness validation surfaces here instead of as a runtime
+        # rejection on real machines.
+        assert payload["positions"]["1"]["denomination"] == 20
+        assert payload["positions"]["2"]["denomination"] == 20
+        assert payload["positions"]["1"]["count"] != payload["positions"]["2"]["count"]
+
+    def test_signature_verifies_via_lnbits_helper(self):
+        """Optional extra per bitspire's 13:15Z note (3). The consumer
+        path runs verify_event before NIP-44 decrypt — locking the sig-
+        algorithm agreement here means both sides hash the event id the
+        same way + Schnorr-verify under the same x-only public-key
+        convention."""
+        from lnbits.utils.nostr import verify_event
+
+        assert verify_event(_BITSPIRE_FIXTURE["event"]) is True
+
+    def test_encrypt_round_trip_via_our_impl_decrypts_with_their_keys(self):
+        """Optional extra per bitspire's 13:15Z note (3). Encrypt the
+        expected plaintext using OUR impl with the ATM keypair as
+        sender + operator pubkey as recipient. The resulting ciphertext
+        won't be byte-identical to the fixture (NIP-44 v2 nonces are
+        random) but it MUST decrypt back to the same plaintext when
+        passed to our decrypt path. Locks the encrypt direction too,
+        not just decrypt."""
+        import json
+
+        from ..nip44 import decrypt_from, encrypt_for
+
+        plaintext = json.dumps(
+            _BITSPIRE_FIXTURE["expected_plaintext"], separators=(",", ":")
+        )
+        atm_sec = _BITSPIRE_FIXTURE["atm_keypair"]["privkey_hex"]
+        atm_pub = _BITSPIRE_FIXTURE["atm_keypair"]["pubkey_hex"]
+        op_sec = _BITSPIRE_FIXTURE["operator_keypair"]["privkey_hex"]
+        op_pub = _BITSPIRE_FIXTURE["operator_keypair"]["pubkey_hex"]
+
+        our_ciphertext = encrypt_for(plaintext, atm_sec, op_pub)
+        recovered = decrypt_from(our_ciphertext, op_sec, atm_pub)
+        assert json.loads(recovered) == _BITSPIRE_FIXTURE["expected_plaintext"]
+        # The two ciphertexts SHOULD differ (random nonce per encrypt)
+        assert our_ciphertext != _BITSPIRE_FIXTURE["event"]["content"]
diff --git a/views_api.py b/views_api.py
index 93ceeeb..66d9e76 100644
--- a/views_api.py
+++ b/views_api.py
@@ -12,6 +12,13 @@ from lnbits.core.crud import get_wallet
 from lnbits.core.models import User
 from lnbits.decorators import check_super_user, check_user_exists
 
+from .cassette_transport import (
+    CassetteTransportError,
+    OperatorIdentityMissing,
+    RelayUnavailable,
+    SignerUnavailable,
+    publish_to_atm,
+)
 from .crud import (
     append_settlement_note,
     count_completed_legs_for_settlement,
@@ -39,9 +46,11 @@ from .crud import (
     get_settlements_for_operator,
     get_stuck_settlements_for_operator,
     get_super_config,
+    list_cassette_configs_for_machine,
     lp_is_onboarded,
     replace_commission_splits,
     reset_settlement_for_retry,
+    update_cassette_config,
     update_dca_client,
     update_deposit,
     update_deposit_status,
@@ -55,6 +64,7 @@ from .distribution import (
 )
 from .models import (
     AppendSettlementNoteData,
+    CassetteConfig,
     ClientBalanceSummary,
     CommissionSplit,
     CreateDcaClientData,
@@ -66,6 +76,7 @@ from .models import (
     DcaSettlement,
     Machine,
     PartialDispenseData,
+    PublishCassettesPayload,
     SetCommissionSplitsData,
     SettleBalanceData,
     StuckSettlementsResponse,
@@ -75,6 +86,7 @@ from .models import (
     UpdateDepositStatusData,
     UpdateMachineData,
     UpdateSuperConfigData,
+    UpsertCassetteConfigData,
 )
 
 satmachineadmin_api_router = APIRouter()
@@ -759,3 +771,127 @@ async def api_update_super_config(
             HTTPStatus.INTERNAL_SERVER_ERROR, "Failed to update super config"
         )
     return config
+
+
+# =============================================================================
+# Cassette configs (#29 v1.1) — per-machine ATM cassette inventory
+# =============================================================================
+# v1.1 surface, paired with aiolabs/lamassu-next#56 ATM-side. Two endpoints:
+#   GET  /machines/{id}/cassettes          — list rows for the operator UI
+#   POST /machines/{id}/cassettes/publish  — apply edits + publish kind-30078
+#
+# Row creation (new (machine_id, position) pairs) is admin-only via the
+# bootstrap consumer task — slot count is hardware-determined. Operator-
+# side flow is edit-and-publish over the existing rows only; the editable
+# fields per row are denomination and count.
+
+
+@satmachineadmin_api_router.get(
+    "/api/v1/dca/machines/{machine_id}/cassettes",
+    response_model=list[CassetteConfig],
+)
+async def api_list_machine_cassettes(
+    machine_id: str, user: User = Depends(check_user_exists)
+) -> list[CassetteConfig]:
+    """List the cassette config rows for one of the operator's machines,
+    ordered by position. Empty list = ATM hasn't yet published its
+    bootstrap event (or the bootstrap consumer hasn't processed it yet);
+    UI should show a "waiting for ATM" state."""
+    await _machine_owned_by(machine_id, user.id)
+    return await list_cassette_configs_for_machine(machine_id)
+
+
+@satmachineadmin_api_router.post(
+    "/api/v1/dca/machines/{machine_id}/cassettes/publish",
+    response_model=list[CassetteConfig],
+)
+async def api_publish_machine_cassettes(
+    machine_id: str,
+    payload: PublishCassettesPayload,
+    user: User = Depends(check_user_exists),
+) -> list[CassetteConfig]:
+    """Operator submits the full per-machine cassette state for publish to
+    the ATM. Validates the position set matches what's currently in
+    cassette_configs for the machine (slot count is hardware-fixed),
+    upserts each row, then encrypts + signs + publishes a kind-30078
+    event tagged with d=bitspire-cassettes:<atm_pubkey_hex> and
+    p=<atm_pubkey_hex>.
+
+    The `<m>` placeholder in the published d-tag is the ATM's hex pubkey
+    from machine.machine_npub (canonicalised via normalize_public_key),
+    NOT the internal dca_machines.id UUID — see #29 'machine_id semantics'
+    section and coord-log 2026-05-30T11:50Z load-bearing nudge.
+
+    Returns the fresh cassette_configs rows after the upserts so the UI
+    can refresh its table from one round-trip.
+
+    Errors:
+      400 — payload position set doesn't match the machine's stored set
+            (operator publishing for a slot that doesn't exist on the
+            ATM; or the bootstrap hasn't landed yet so no rows exist)
+      400 — operator hasn't onboarded a Nostr identity
+      503 — signer offline / client-side-only, or nostrclient extension
+            not installed on this LNbits instance
+      500 — anything else from the publish path
+    """
+    machine = await _machine_owned_by(machine_id, user.id)
+
+    existing = await list_cassette_configs_for_machine(machine_id)
+    existing_positions = {row.position for row in existing}
+    incoming_positions = set(payload.positions.keys())
+
+    if not existing:
+        raise HTTPException(
+            HTTPStatus.BAD_REQUEST,
+            (
+                "No cassette_configs rows exist for this machine yet — "
+                "waiting for the ATM's bootstrap state event. Power on the "
+                "ATM and confirm it has reached the configured relay; "
+                "satmachineadmin will auto-populate cassette_configs on "
+                "receipt."
+            ),
+        )
+    if existing_positions != incoming_positions:
+        missing = existing_positions - incoming_positions
+        extra = incoming_positions - existing_positions
+        raise HTTPException(
+            HTTPStatus.BAD_REQUEST,
+            (
+                "Payload position set doesn't match the machine's stored "
+                f"set. Missing from payload: {sorted(missing)}; extra in "
+                f"payload: {sorted(extra)}. Slot count is hardware-fixed "
+                "— re-provision the ATM via atm-tui to add/remove physical "
+                "bays, then re-publish."
+            ),
+        )
+
+    # Apply each per-row edit so the operator-believed state on
+    # satmachineadmin reflects the published payload, even if the ATM
+    # ack lands later (v2). updated_by audit-stamps the operator user id.
+    for pos, row in payload.positions.items():
+        updated = await update_cassette_config(
+            machine_id,
+            pos,
+            UpsertCassetteConfigData(denomination=row.denomination, count=row.count),
+            updated_by=user.id,
+        )
+        if updated is None:
+            # Defensive — we just validated the row exists, but a
+            # concurrent delete could land between. Surface as 500.
+            raise HTTPException(
+                HTTPStatus.INTERNAL_SERVER_ERROR,
+                f"cassette row for position {pos} disappeared mid-publish",
+            )
+
+    try:
+        await publish_to_atm(machine, payload, user.id)
+    except OperatorIdentityMissing as exc:
+        raise HTTPException(HTTPStatus.BAD_REQUEST, str(exc)) from exc
+    except SignerUnavailable as exc:
+        raise HTTPException(HTTPStatus.SERVICE_UNAVAILABLE, str(exc)) from exc
+    except RelayUnavailable as exc:
+        raise HTTPException(HTTPStatus.SERVICE_UNAVAILABLE, str(exc)) from exc
+    except CassetteTransportError as exc:
+        raise HTTPException(HTTPStatus.INTERNAL_SERVER_ERROR, str(exc)) from exc
+
+    return await list_cassette_configs_for_machine(machine_id)