diff --git a/src/cli/BaseCommand.ts b/src/cli/BaseCommand.ts
index 23a437e87..2cc0335e1 100644
--- a/src/cli/BaseCommand.ts
+++ b/src/cli/BaseCommand.ts
@@ -1,4 +1,5 @@
 import { ApplicationError } from "@js-soft/ts-utils";
+import _ from "lodash";
 import yargs from "yargs";
 import { ConnectorRuntime } from "../ConnectorRuntime";
 import { ConnectorRuntimeConfig } from "../ConnectorRuntimeConfig";
@@ -60,11 +61,11 @@ export abstract class BaseCommand {
         }
     }
 
-    protected async createRuntime(): Promise<void> {
+    protected async createRuntime(allowIdentityCreation = false): Promise<void> {
         if (this.#cliRuntime) return;
         if (!this.#connectorConfig) throw new Error("Connector config not initialized");
 
-        this.#cliRuntime = await ConnectorRuntime.create(this.#connectorConfig);
+        this.#cliRuntime = await ConnectorRuntime.create(_.merge(this.#connectorConfig, { transportLibrary: { allowIdentityCreation } }));
         await this.#cliRuntime.start();
     }
 
diff --git a/src/cli/commands/identity/init.ts b/src/cli/commands/identity/init.ts
new file mode 100644
index 000000000..d7fa01277
--- /dev/null
+++ b/src/cli/commands/identity/init.ts
@@ -0,0 +1,30 @@
+import { CoreError } from "@nmshd/core-types";
+import { CommandModule } from "yargs";
+import { BaseCommand, ConfigFileOptions, configOptionBuilder } from "../../BaseCommand";
+
+export const identityInitHandler = async ({ config }: ConfigFileOptions): Promise<void> => {
+    await new IdentityInit().run(config);
+};
+export const yargsIdentityInitCommand: CommandModule<{}, ConfigFileOptions> = {
+    command: "init",
+    describe: "initialize the identity",
+    handler: identityInitHandler,
+    builder: configOptionBuilder
+};
+
+export default class IdentityInit extends BaseCommand {
+    protected async runInternal(): Promise<void> {
+        try {
+            await this.createRuntime(false);
+            this.log.log("Identity already exists not creating a new one.");
+        } catch (error: unknown) {
+            if (error instanceof CoreError && error.code === "error.transport.general.noIdentityFound") {
+                await this.createRuntime(true);
+                const address = (await this.cliRuntime.getServices().transportServices.account.getIdentityInfo()).value.address;
+                this.log.log(`Identity with address (${address}) created successfully.`);
+            } else {
+                throw error;
+            }
+        }
+    }
+}
diff --git a/src/cli/commands/index.ts b/src/cli/commands/index.ts
index 9ac0289cd..fd4ec786a 100644
--- a/src/cli/commands/index.ts
+++ b/src/cli/commands/index.ts
@@ -1,3 +1,4 @@
+export * from "./identity/init";
 export * from "./identity/status";
 export * from "./identityDeletion/cancel";
 export * from "./identityDeletion/init";
diff --git a/src/index.ts b/src/index.ts
index 214c7de6e..c7a29d5fe 100644
--- a/src/index.ts
+++ b/src/index.ts
@@ -2,14 +2,14 @@
 
 import yargs from "yargs";
 import { hideBin } from "yargs/helpers";
-import { startConnectorCommand, yargsIdentityDeletionCancelCommand, yargsIdentityDeletionInitCommand, yargsIdentityStatusCommand } from "./cli/commands";
+import { startConnectorCommand, yargsIdentityDeletionCancelCommand, yargsIdentityDeletionInitCommand, yargsIdentityInitCommand, yargsIdentityStatusCommand } from "./cli/commands";
 
 yargs(hideBin(process.argv))
     .command({
         command: "identity [command]",
         describe: "Identity related commands",
         builder: (yargs) => {
-            return yargs.command(yargsIdentityStatusCommand);
+            return yargs.command(yargsIdentityStatusCommand).command(yargsIdentityInitCommand);
         },
         handler: () => {
             yargs.showHelp("log");
diff --git a/test/modules/cli/identity/IdentityInit.test.ts b/test/modules/cli/identity/IdentityInit.test.ts
new file mode 100644
index 000000000..c9ad931cb
--- /dev/null
+++ b/test/modules/cli/identity/IdentityInit.test.ts
@@ -0,0 +1,33 @@
+import { identityInitHandler } from "../../../../dist/cli/commands";
+import { resetDB, setupEnvironment } from "../setup";
+
+describe("identity init", () => {
+    const identityCreatedPattern = /Identity with address did:e:((([A-Za-z0-9]+(-[A-Za-z0-9]+)*)\.)+[a-z]{2,}|localhost):dids:[0-9a-f]{22} created successfully\./;
+
+    beforeAll(() => {
+        setupEnvironment();
+    });
+
+    afterAll(async () => {
+        await resetDB();
+    });
+
+    afterEach(() => {
+        jest.resetAllMocks();
+    });
+
+    test("identity should be created", async () => {
+        const consoleSpy = jest.spyOn(console, "log");
+        await identityInitHandler({ config: undefined });
+        expect(consoleSpy.mock.lastCall![0]).toMatch(identityCreatedPattern);
+        expect(consoleSpy).toHaveBeenCalledTimes(1);
+    });
+
+    test("identity should not be created when one already exists", async () => {
+        const consoleSpy = jest.spyOn(console, "log");
+        await identityInitHandler({ config: undefined });
+        await identityInitHandler({ config: undefined });
+        expect(consoleSpy).toHaveBeenCalledWith("Identity already created!");
+        expect(consoleSpy).toHaveBeenCalledTimes(2);
+    });
+});
diff --git a/test/modules/cli/identity/identityStatus.test.ts b/test/modules/cli/identity/identityStatus.test.ts
index 56a06f48c..29428fb84 100644
--- a/test/modules/cli/identity/identityStatus.test.ts
+++ b/test/modules/cli/identity/identityStatus.test.ts
@@ -1,12 +1,13 @@
 import { sleep } from "@js-soft/ts-utils";
-import { identityDeletionInitHandler, identityStatusHandler } from "../../../../dist/cli/commands";
+import { identityDeletionInitHandler, identityInitHandler, identityStatusHandler } from "../../../../dist/cli/commands";
 import { resetDB, setupEnvironment } from "../setup";
 
 describe("Identity status", () => {
     const identityStatusPattern = /Identity Address: did:e:((([A-Za-z0-9]+(-[A-Za-z0-9]+)*)\.)+[a-z]{2,}|localhost):dids:[0-9a-f]{22}/;
 
-    beforeAll(() => {
+    beforeAll(async () => {
         setupEnvironment();
+        await identityInitHandler({});
     });
 
     afterAll(async () => {
diff --git a/test/modules/cli/identityDeletion/identityDeletion.test.ts b/test/modules/cli/identityDeletion/identityDeletion.test.ts
index 5cc2fc995..59ebfa08e 100644
--- a/test/modules/cli/identityDeletion/identityDeletion.test.ts
+++ b/test/modules/cli/identityDeletion/identityDeletion.test.ts
@@ -1,9 +1,10 @@
-import { identityDeletionCancelHandler, identityDeletionInitHandler } from "../../../../dist/cli/commands";
+import { identityDeletionCancelHandler, identityDeletionInitHandler, identityInitHandler } from "../../../../dist/cli/commands";
 import { resetDB, setupEnvironment } from "../setup";
 
 describe("Identity deletion", () => {
-    beforeAll(() => {
+    beforeAll(async () => {
         setupEnvironment();
+        await identityInitHandler({});
     });
 
     afterAll(async () => {