diff --git a/config/config.go b/config/config.go
index ada6ca0c..db4a3004 100644
--- a/config/config.go
+++ b/config/config.go
@@ -56,6 +56,8 @@ const (
 	PvtKeyForMetering           = "pvt_key_for_metering"
 	NotificationServiceEndpoint = "notification_svc_end_point"
 	ServiceHeartbeatType        = "service_heartbeat_type"
+	TokenExpiryInSeconds        = "token_expiry_in_seconds"
+	TokenSecretKey              = "token_secret_key"
 	//none|grpc|http
 	//This defaultConfigJson will eventually be replaced by DefaultDaemonConfigurationSchema
 	defaultConfigJson string = `
diff --git a/snetd/cmd/components.go b/snetd/cmd/components.go
index 01daf0ee..682c54dc 100644
--- a/snetd/cmd/components.go
+++ b/snetd/cmd/components.go
@@ -9,6 +9,7 @@ import (
 	"github.com/singnet/snet-daemon/configuration_service"
 	"github.com/singnet/snet-daemon/metrics"
 	"github.com/singnet/snet-daemon/pricing"
+	"github.com/singnet/snet-daemon/token"
 	log "github.com/sirupsen/logrus"
 	"github.com/spf13/cobra"
 	"github.com/spf13/pflag"
@@ -50,6 +51,7 @@ type Components struct {
 	freeCallUserService        escrow.FreeCallUserService
 	freeCallUserStorage        *escrow.FreeCallUserStorage
 	freeCallLockerStorage      *escrow.PrefixedAtomicStorage
+	tokenService               token.Service
 }
 
 func InitComponents(cmd *cobra.Command) (components *Components) {
@@ -505,3 +507,13 @@ func (components *Components) ConfigurationService() *configuration_service.Conf
 
 	return components.configurationService
 }
+
+func (components *Components) TokenService() token.Service {
+	if components.tokenService != nil {
+		return components.tokenService
+	}
+
+	components.tokenService = token.NewJWTTokenService(*components.OrganizationMetaData())
+
+	return components.tokenService
+}
diff --git a/token/jwttoken.go b/token/jwttoken.go
new file mode 100644
index 00000000..a653fe3b
--- /dev/null
+++ b/token/jwttoken.go
@@ -0,0 +1,70 @@
+package token
+
+import (
+	"fmt"
+	"github.com/dgrijalva/jwt-go"
+	"github.com/singnet/snet-daemon/blockchain"
+	"github.com/singnet/snet-daemon/config"
+	"strings"
+	"time"
+)
+
+type customJWTokenServiceImpl struct {
+	getGroupId func() string
+}
+
+//This will be used in components as a service to Create and Validate tokens
+func NewJWTTokenService(data blockchain.OrganizationMetaData) Service {
+	return &customJWTokenServiceImpl{
+		getGroupId: func() string {
+			return data.GetGroupIdString()
+		},
+	}
+}
+
+func (service customJWTokenServiceImpl) CreateToken(payLoad PayLoad) (CustomToken, error) {
+	atClaims := jwt.MapClaims{}
+	atClaims["payload"] = fmt.Sprintf("%v", payLoad)
+	atClaims["orgId"] = config.GetString(config.OrganizationId)
+	atClaims["groupId"] = service.getGroupId()
+	//set the Expiry of the Token generated
+	atClaims["exp"] = time.Now().UTC().
+		Add(time.Second * time.Duration(config.GetInt(config.TokenExpiryInSeconds))).Unix()
+	jwtToken := jwt.NewWithClaims(jwt.SigningMethodHS256, atClaims)
+	return jwtToken.SignedString([]byte(config.GetString(config.TokenSecretKey)))
+}
+
+func (service customJWTokenServiceImpl) VerifyToken(receivedToken CustomToken, payLoad PayLoad) (err error) {
+	tokenString := fmt.Sprintf("%v", receivedToken)
+	token, err := jwt.Parse(tokenString, func(token *jwt.Token) (interface{}, error) {
+		if _, ok := token.Method.(*jwt.SigningMethodHMAC); !ok {
+			return nil, fmt.Errorf("unexpected signing method : %v", token.Header["alg"])
+		}
+		return []byte(config.GetString(config.TokenSecretKey)), nil
+	})
+	if err != nil {
+		return err
+	}
+
+	if claims, ok := token.Claims.(jwt.MapClaims); ok && token.Valid {
+		if err = service.checkJwtTokenClaims(claims, payLoad); err != nil {
+			return err
+		}
+	}
+	return nil
+}
+
+func (service customJWTokenServiceImpl) checkJwtTokenClaims(claims jwt.MapClaims, payload PayLoad) (err error) {
+	if strings.Compare(fmt.Sprintf("%v", claims["payload"]), fmt.Sprintf("%v", payload)) != 0 {
+		return fmt.Errorf("payload %v used to generate the Token doesnt match expected values", claims["payload"])
+	}
+
+	if strings.Compare(fmt.Sprintf("%v", claims["orgId"]), config.GetString(config.OrganizationId)) != 0 {
+		return fmt.Errorf("organization %v is not associated with this Daemon", claims["orgId"])
+	}
+
+	if strings.Compare(fmt.Sprintf("%v", claims["groupId"]), service.getGroupId()) != 0 {
+		return fmt.Errorf("groupId %v is not associated with this Daemon", claims["groupId"])
+	}
+	return nil
+}
diff --git a/token/jwttoken_test.go b/token/jwttoken_test.go
new file mode 100644
index 00000000..8bf75c26
--- /dev/null
+++ b/token/jwttoken_test.go
@@ -0,0 +1,51 @@
+package token
+
+import (
+	"testing"
+	"time"
+
+	"github.com/singnet/snet-daemon/config"
+	"github.com/stretchr/testify/assert"
+)
+
+func Test_customJWTokenClaimsImpl_CreateToken(t *testing.T) {
+	tokenImpl := &customJWTokenServiceImpl{
+		getGroupId: func() string {
+			return "GroupID"
+		},
+	}
+	token, err := tokenImpl.CreateToken("any struct")
+	assert.Nil(t, err)
+	assert.NotNil(t, token)
+	err = tokenImpl.VerifyToken(token, "any struct")
+	config.Vip().Set(config.TokenExpiryInSeconds, 1)
+	token, err = tokenImpl.CreateToken("any struct")
+	time.Sleep(time.Second * 5)
+	assert.Nil(t, err)
+	err = tokenImpl.VerifyToken(token, "any struct")
+	assert.Equal(t, "Token is expired", err.Error())
+
+}
+
+func Test_customJWTokenClaimsImpl_checkJwtTokenClaims(t *testing.T) {
+	tokenImpl := &customJWTokenServiceImpl{
+		getGroupId: func() string {
+			return "GroupID"
+		},
+	}
+	config.Vip().Set(config.TokenExpiryInSeconds, 50)
+	token, err := tokenImpl.CreateToken("any struct")
+	err = tokenImpl.VerifyToken(token, "different struct")
+	assert.Equal(t, "payload any struct used to generate the Token doesnt match expected values", err.Error())
+	config.Vip().Set(config.OrganizationId, "differentOrganization")
+	err = tokenImpl.VerifyToken(token, "any struct")
+	assert.Equal(t, "organization ExampleOrganizationId is not associated with this Daemon", err.Error())
+	config.Vip().Set(config.OrganizationId, "ExampleOrganizationId")
+	tokenImpl2 := &customJWTokenServiceImpl{
+		getGroupId: func() string {
+			return "GroupID2"
+		},
+	}
+	err = tokenImpl2.VerifyToken(token, "any struct")
+	assert.Equal(t, "groupId GroupID is not associated with this Daemon", err.Error())
+}
diff --git a/token/token_service_api.go b/token/token_service_api.go
new file mode 100644
index 00000000..b1131882
--- /dev/null
+++ b/token/token_service_api.go
@@ -0,0 +1,10 @@
+package token
+
+type PayLoad interface{}
+type CustomToken interface{}
+
+// Token.Service interface is an API for creating and verifying tokens
+type Service interface {
+	CreateToken(key PayLoad) (token CustomToken, err error)
+	VerifyToken(token CustomToken, key PayLoad) (err error)
+}