diff --git a/packages/did-provider-jwk/__tests__/comparison-regression.test.ts b/packages/did-provider-jwk/__tests__/comparison-regression.test.ts
index 3933ac97..225dfe65 100644
--- a/packages/did-provider-jwk/__tests__/comparison-regression.test.ts
+++ b/packages/did-provider-jwk/__tests__/comparison-regression.test.ts
@@ -15,7 +15,9 @@ const method = require('@or13/did-jwk')
 
 const DID_METHOD = 'did:jwk'
 
-const jwkDIDProvider = new JwkDIDProvider()
+const jwkDIDProvider = new JwkDIDProvider({
+  defaultKms: 'mem',
+})
 
 const agent = createAgent<IKeyManager & DIDManager & IResolver>({
   plugins: [
diff --git a/packages/did-provider-jwk/__tests__/jwk-did-provider.test.ts b/packages/did-provider-jwk/__tests__/jwk-did-provider.test.ts
index c52d69cd..5cd3e071 100644
--- a/packages/did-provider-jwk/__tests__/jwk-did-provider.test.ts
+++ b/packages/did-provider-jwk/__tests__/jwk-did-provider.test.ts
@@ -10,7 +10,9 @@ import { JwkKeyUse } from '@sphereon/ssi-sdk-ext.key-utils'
 const DID_METHOD = 'did:jwk'
 const PRIVATE_KEY_HEX = '7dd923e40f4615ac496119f7e793cc2899e99b64b88ca8603db986700089532b'
 
-const jwkDIDProvider = new JwkDIDProvider()
+const jwkDIDProvider = new JwkDIDProvider({
+  defaultKms: 'mem',
+})
 
 const agent = createAgent<IKeyManager, DIDManager>({
   plugins: [
diff --git a/packages/did-provider-jwk/src/jwk-did-provider.ts b/packages/did-provider-jwk/src/jwk-did-provider.ts
index dc8f709d..6939adec 100644
--- a/packages/did-provider-jwk/src/jwk-did-provider.ts
+++ b/packages/did-provider-jwk/src/jwk-did-provider.ts
@@ -12,12 +12,18 @@ const debug = Debug('sphereon:did-provider-jwk')
  * @public
  */
 export class JwkDIDProvider extends AbstractIdentifierProvider {
+  private readonly defaultKms?: string
+
+  constructor(options: { defaultKms?: string }) {
+    super()
+    this.defaultKms = options.defaultKms
+  }
 
   /** {@inheritDoc @veramo/veramo-core#IDIDManager.didManagerCreate} */
   async createIdentifier(args: ICreateIdentifierArgs, context: IRequiredContext): Promise<Omit<IIdentifier, 'provider'>> {
     const key = await importProvidedOrGeneratedKey(
       {
-        kms: args.kms,
+        kms: args.kms ?? this.defaultKms ?? '',
         alias: args.alias,
         options: args.options,
       },
diff --git a/packages/did-provider-key/__tests__/key-did-provider.test.ts b/packages/did-provider-key/__tests__/key-did-provider.test.ts
index f6ebe675..1ab91d73 100644
--- a/packages/did-provider-key/__tests__/key-did-provider.test.ts
+++ b/packages/did-provider-key/__tests__/key-did-provider.test.ts
@@ -13,7 +13,9 @@ const PRIVATE_KEY_HEX = '7dd923e40f4615ac496119f7e793cc2899e99b64b88ca8603db9867
 
 // const jwk = toJwk(PRIVATE_KEY_HEX, 'Secp256k1', { isPrivateKey: true })
 // console.log(JSON.stringify(jwk, null, 2))
-const keyDIDProvider = new SphereonKeyDidProvider()
+const keyDIDProvider = new SphereonKeyDidProvider({
+  defaultKms: 'mem',
+})
 
 const agent = createAgent<IKeyManager, DIDManager>({
   plugins: [
diff --git a/packages/did-provider-key/src/SphereonKeyDidProvider.ts b/packages/did-provider-key/src/SphereonKeyDidProvider.ts
index 9b5e379f..cab498f0 100644
--- a/packages/did-provider-key/src/SphereonKeyDidProvider.ts
+++ b/packages/did-provider-key/src/SphereonKeyDidProvider.ts
@@ -30,7 +30,13 @@ const keyCodecs = {
 } as const
 
 export class SphereonKeyDidProvider extends AbstractIdentifierProvider {
- 
+  private readonly kms?: string
+
+  constructor(options: { defaultKms?: string }) {
+    super()
+    this.kms = options.defaultKms
+  }
+
   async createIdentifier(
     {
       kms,
@@ -61,7 +67,7 @@ export class SphereonKeyDidProvider extends AbstractIdentifierProvider {
 
     const key = await importProvidedOrGeneratedKey(
       {
-        kms: kms,
+        kms: kms ?? this.kms ?? '',
         alias: alias,
         options: { ...options, type: keyType },
       },
diff --git a/packages/did-provider-oyd/src/oyd-did-provider.ts b/packages/did-provider-oyd/src/oyd-did-provider.ts
index 685bcb97..1cf5d6b2 100644
--- a/packages/did-provider-oyd/src/oyd-did-provider.ts
+++ b/packages/did-provider-oyd/src/oyd-did-provider.ts
@@ -13,6 +13,12 @@ type IContext = IAgentContext<IKeyManager>
  * @public
  */
 export class OydDIDProvider extends AbstractIdentifierProvider {
+  private defaultKms?: string
+
+  constructor(options: { defaultKms?: string }) {
+    super()
+    this.defaultKms = options.defaultKms
+  }
 
   async createIdentifier(
     { kms, options }: { kms?: string; options: OydCreateIdentifierOptions },
@@ -42,7 +48,7 @@ export class OydDIDProvider extends AbstractIdentifierProvider {
     const keyType: OydDidSupportedKeyTypes = options?.keyType || 'Ed25519'
     const key = await this.holdKeys(
       {
-        kms: kms,
+        kms: kms || this.defaultKms || '',
         options: {
           keyType,
           kid: didDoc.did + '#key-doc',
@@ -96,7 +102,7 @@ export class OydDIDProvider extends AbstractIdentifierProvider {
   private async holdKeys(args: OydDidHoldKeysArgs, context: IContext): Promise<IKey> {
     if (args.options.privateKeyHex) {
       return context.agent.keyManagerImport({
-        kms: '',
+        kms: args.kms || this.defaultKms || '',
         type: args.options.keyType,
         kid: args.options.kid,
         privateKeyHex: args.options.privateKeyHex,
@@ -107,7 +113,7 @@ export class OydDIDProvider extends AbstractIdentifierProvider {
     }
     return context.agent.keyManagerCreate({
       type: args.options.keyType,
-      kms: '',
+      kms: args.kms || this.defaultKms || '',
       meta: {
         algorithms: ['Ed25519'],
       },
diff --git a/packages/did-provider-oyd/src/types/oyd-provider-types.ts b/packages/did-provider-oyd/src/types/oyd-provider-types.ts
index 999877ff..7ec4e2a8 100644
--- a/packages/did-provider-oyd/src/types/oyd-provider-types.ts
+++ b/packages/did-provider-oyd/src/types/oyd-provider-types.ts
@@ -5,7 +5,7 @@ export type OydCreateIdentifierOptions = {
 }
 
 export type OydDidHoldKeysArgs = {
-  kms?: string
+  kms: string
   options: HoldKeysOpts
 }
 
diff --git a/packages/did-provider-web/src/web-did-provider.ts b/packages/did-provider-web/src/web-did-provider.ts
index afbc9187..1c0873ed 100644
--- a/packages/did-provider-web/src/web-did-provider.ts
+++ b/packages/did-provider-web/src/web-did-provider.ts
@@ -15,6 +15,12 @@ type IContext = IAgentContext<IKeyManager>
  * @public
  */
 export class WebDIDProvider extends AbstractIdentifierProvider {
+  private readonly defaultKms: string
+
+  constructor(options: { defaultKms: string }) {
+    super()
+    this.defaultKms = options.defaultKms
+  }
 
   async createIdentifier(args: ICreateIdentifierArgs, context: IContext): Promise<Omit<IIdentifier, 'provider'>> {
     const { kms, alias } = args
@@ -25,7 +31,7 @@ export class WebDIDProvider extends AbstractIdentifierProvider {
     }
     const keyOpts = Array.isArray(opts.keys) ? opts.keys : [opts.keys as IKeyOpts]
     const keys = await Promise.all(
-      keyOpts.map((keyOpt: IKeyOpts) => importProvidedOrGeneratedKey({ kms: kms, options: keyOpt }, context))
+      keyOpts.map((keyOpt: IKeyOpts) => importProvidedOrGeneratedKey({ kms: kms ?? this.defaultKms, options: keyOpt }, context))
     )
 
     const controllerIdx = keyOpts.findIndex((opt) => opt.isController)
diff --git a/packages/identifier-resolution/__tests__/localAgent.test.ts b/packages/identifier-resolution/__tests__/localAgent.test.ts
index 74c094ca..7749da6b 100644
--- a/packages/identifier-resolution/__tests__/localAgent.test.ts
+++ b/packages/identifier-resolution/__tests__/localAgent.test.ts
@@ -22,7 +22,9 @@ let agent: TAgent<IKeyManager & IDIDManager & IIdentifierResolution>
 
 const DID_METHOD = 'did:jwk'
 
-const jwkDIDProvider = new JwkDIDProvider()
+const jwkDIDProvider = new JwkDIDProvider({
+  defaultKms: 'mem',
+})
 
 const setup = async (): Promise<boolean> => {
   const db: OrPromise<DataSource> = new DataSource({
diff --git a/packages/identifier-resolution/__tests__/restAgent.test.ts b/packages/identifier-resolution/__tests__/restAgent.test.ts
index 645efb0a..6b78a107 100644
--- a/packages/identifier-resolution/__tests__/restAgent.test.ts
+++ b/packages/identifier-resolution/__tests__/restAgent.test.ts
@@ -29,7 +29,9 @@ const basePath = '/agent'
 
 const DID_METHOD = 'did:jwk'
 
-const jwkDIDProvider = new JwkDIDProvider()
+const jwkDIDProvider = new JwkDIDProvider({
+  defaultKms: 'mem',
+})
 
 let serverAgent: IAgent
 let clientAgent: TAgent<IKeyManager & IDIDManager & IIdentifierResolution>
diff --git a/packages/jwt-service/__tests__/localAgent.test.ts b/packages/jwt-service/__tests__/localAgent.test.ts
index e2720b84..e3e0e901 100644
--- a/packages/jwt-service/__tests__/localAgent.test.ts
+++ b/packages/jwt-service/__tests__/localAgent.test.ts
@@ -23,7 +23,9 @@ let agent: TAgent<IKeyManager & IDIDManager & IIdentifierResolution & IJwtServic
 
 const DID_METHOD = 'did:jwk'
 
-const jwkDIDProvider = new JwkDIDProvider()
+const jwkDIDProvider = new JwkDIDProvider({
+  defaultKms: 'mem',
+})
 
 const setup = async (): Promise<boolean> => {
   const db: OrPromise<DataSource> = new DataSource({
diff --git a/packages/jwt-service/__tests__/restAgent.test.ts b/packages/jwt-service/__tests__/restAgent.test.ts
index d7a0d9a1..7760913e 100644
--- a/packages/jwt-service/__tests__/restAgent.test.ts
+++ b/packages/jwt-service/__tests__/restAgent.test.ts
@@ -30,7 +30,9 @@ const basePath = '/agent'
 
 const DID_METHOD = 'did:jwk'
 
-const jwkDIDProvider = new JwkDIDProvider()
+const jwkDIDProvider = new JwkDIDProvider({
+  defaultKms: 'mem',
+})
 
 let serverAgent: IAgent
 let clientAgent: TAgent<IKeyManager & IDIDManager & IIdentifierResolution & IJwtService>
diff --git a/packages/key-manager/src/agent/SphereonKeyManager.ts b/packages/key-manager/src/agent/SphereonKeyManager.ts
index acfaf745..f6519c6d 100644
--- a/packages/key-manager/src/agent/SphereonKeyManager.ts
+++ b/packages/key-manager/src/agent/SphereonKeyManager.ts
@@ -51,7 +51,7 @@ export class SphereonKeyManager extends VeramoKeyManager {
   }
 
   override async keyManagerCreate(args: ISphereonKeyManagerCreateArgs): Promise<ManagedKeyInfo> {
-    const kms = this.getKmsByName(args.kms || this._defaultKms)
+    const kms = this.getKmsByName(args.kms ?? this._defaultKms)
     const meta: KeyMetadata = { ...args.meta, ...(args.opts && { opts: args.opts }) }
     if (hasKeyOptions(meta) && meta.opts?.ephemeral && !meta.opts.expiration?.removalDate) {
       // Make sure we set a delete date on an ephemeral key
@@ -61,7 +61,7 @@ export class SphereonKeyManager extends VeramoKeyManager {
       }
     }
     const partialKey = await kms.createKey({ type: args.type, meta })
-    const key: IKey = { ...partialKey, kms: args.kms || this._defaultKms }
+    const key: IKey = { ...partialKey, kms: args.kms ?? this._defaultKms }
     key.meta = { ...meta, ...key.meta }
     key.meta.jwkThumbprint = key.meta.jwkThumbprint ?? calculateJwkThumbprintForKey({ key })
 
diff --git a/packages/key-utils/src/functions.ts b/packages/key-utils/src/functions.ts
index e2e3534a..5e204bf2 100644
--- a/packages/key-utils/src/functions.ts
+++ b/packages/key-utils/src/functions.ts
@@ -101,7 +101,7 @@ const keyMetaAlgorithmsFromKeyType = (type: string | TKeyType) => {
  */
 export async function importProvidedOrGeneratedKey(
   args: IImportProvidedOrGeneratedKeyArgs & {
-    kms?: string
+    kms: string
   },
   context: IAgentContext<IKeyManager>
 ): Promise<IKey> {
@@ -134,7 +134,7 @@ export async function importProvidedOrGeneratedKey(
   if (privateKeyHex) {
     return context.agent.keyManagerImport({
       ...key,
-      kms: args.kms ?? '',
+      kms: args.kms,
       type,
       privateKeyHex: privateKeyHex!,
     })
@@ -142,7 +142,7 @@ export async function importProvidedOrGeneratedKey(
 
   return context.agent.keyManagerCreate({
     type,
-    kms: args.kms ?? '',
+    kms: args.kms,
     meta: {
       ...key?.meta,
       algorithms: keyMetaAlgorithmsFromKeyType(type),