diff --git a/backend/src/db/seed-data.ts b/backend/src/db/seed-data.ts
index 63821e15e..6406e44ab 100644
--- a/backend/src/db/seed-data.ts
+++ b/backend/src/db/seed-data.ts
@@ -1,3 +1,4 @@
+/* eslint-disable import/no-mutable-exports */
 import crypto from "node:crypto";
 
 import argon2, { argon2id } from "argon2";
@@ -15,9 +16,12 @@ import {
 
 import { TSecrets, TUserEncryptionKeys } from "./schemas";
 
+export let userPrivateKey: string | undefined;
+export let userPublicKey: string | undefined;
+
 export const seedData1 = {
   id: "3dafd81d-4388-432b-a4c5-f735616868c1",
-  email: "test@localhost.local",
+  email: process.env.TEST_USER_EMAIL || "test@localhost.local",
   password: process.env.TEST_USER_PASSWORD || "testInfisical@1",
   organization: {
     id: "180870b7-f464-4740-8ffe-9d11c9245ea7",
@@ -42,6 +46,12 @@ export const seedData1 = {
   },
   token: {
     id: "a9dfafba-a3b7-42e3-8618-91abb702fd36"
+  },
+
+  // We set these values during user creation, and later re-use them during project seeding.
+  encryptionKeys: {
+    publicKey: "",
+    privateKey: ""
   }
 };
 
diff --git a/backend/src/db/seeds/1-user.ts b/backend/src/db/seeds/1-user.ts
index af40dbbbc..5f9fcd509 100644
--- a/backend/src/db/seeds/1-user.ts
+++ b/backend/src/db/seeds/1-user.ts
@@ -3,9 +3,12 @@
 
 import { Knex } from "knex";
 
+// eslint-disable-next-line @typescript-eslint/no-unused-vars
+import { generateUserSrpKeys } from "@app/lib/crypto/srp";
+
 import { AuthMethod } from "../../services/auth/auth-type";
 import { TableName } from "../schemas";
-import { generateUserSrpKeys, seedData1 } from "../seed-data";
+import { seedData1 } from "../seed-data";
 
 export async function seed(knex: Knex): Promise<void> {
   // Deletes ALL existing entries
@@ -34,7 +37,7 @@ export async function seed(knex: Knex): Promise<void> {
     ])
     .returning("*");
 
-  const encKeys = await generateUserSrpKeys(seedData1.password);
+  const encKeys = await generateUserSrpKeys(seedData1.email, seedData1.password);
   // password: testInfisical@1
   await knex(TableName.UserEncryptionKey).insert([
     {
@@ -64,4 +67,9 @@ export async function seed(knex: Knex): Promise<void> {
     refreshVersion: 1,
     lastUsed: new Date()
   });
+
+  seedData1.encryptionKeys = {
+    publicKey: encKeys.publicKey,
+    privateKey: encKeys.plainPrivateKey
+  };
 }
diff --git a/backend/src/db/seeds/3-project.ts b/backend/src/db/seeds/3-project.ts
index fea71b557..af74140dc 100644
--- a/backend/src/db/seeds/3-project.ts
+++ b/backend/src/db/seeds/3-project.ts
@@ -2,7 +2,9 @@ import crypto from "node:crypto";
 
 import { Knex } from "knex";
 
-import { encryptSymmetric128BitHexKeyUTF8 } from "@app/lib/crypto";
+import { getConfig, initEnvConfig } from "@app/lib/config/env";
+import { createSecretBlindIndex, encryptAsymmetric, encryptSymmetric128BitHexKeyUTF8 } from "@app/lib/crypto";
+import { initLogger } from "@app/lib/logger";
 
 import { OrgMembershipRole, SecretEncryptionAlgo, SecretKeyEncoding, TableName } from "../schemas";
 import { buildUserProjectKey, getUserPrivateKey, seedData1 } from "../seed-data";
@@ -14,6 +16,8 @@ export const DEFAULT_PROJECT_ENVS = [
 ];
 
 export async function seed(knex: Knex): Promise<void> {
+  initEnvConfig(await initLogger());
+  const appCfg = getConfig();
   // Deletes ALL existing entries
   await knex(TableName.Project).del();
   await knex(TableName.Environment).del();
@@ -24,12 +28,40 @@ export async function seed(knex: Knex): Promise<void> {
       name: seedData1.project.name,
       orgId: seedData1.organization.id,
       slug: "first-project",
-      // eslint-disable-next-line
-      // @ts-ignore
-      id: seedData1.project.id
+      // @ts-expect-error exluded type id needs to be inserted here to keep it testable
+      id: seedData1.project.id,
+      version: "v1"
     })
     .returning("*");
 
+  const blindIndex = createSecretBlindIndex(appCfg.ROOT_ENCRYPTION_KEY, appCfg.ENCRYPTION_KEY);
+
+  await knex(TableName.SecretBlindIndex).insert({
+    projectId: project.id,
+    algorithm: blindIndex.algorithm,
+    keyEncoding: blindIndex.keyEncoding,
+    saltIV: blindIndex.iv,
+    encryptedSaltCipherText: blindIndex.ciphertext,
+    saltTag: blindIndex.tag
+  });
+
+  const randomBytes = crypto.randomBytes(16).toString("hex"); // Project key
+  // const encKeys = await generateUserSrpKeys(seedData1.email, seedData1.password); // User keys
+
+  const { ciphertext: encryptedProjectKey, nonce: encryptedProjectKeyIv } = encryptAsymmetric(
+    randomBytes,
+    seedData1.encryptionKeys.publicKey,
+    seedData1.encryptionKeys.privateKey
+  );
+
+  await knex(TableName.ProjectKeys).insert({
+    projectId: project.id,
+    senderId: seedData1.id,
+    receiverId: seedData1.id,
+    encryptedKey: encryptedProjectKey,
+    nonce: encryptedProjectKeyIv
+  });
+
   await knex(TableName.ProjectMembership).insert({
     projectId: project.id,
     role: OrgMembershipRole.Admin,