diff --git a/app/boot_levels.go b/app/boot_levels.go
index 618cdfd4d..89d76ae34 100644
--- a/app/boot_levels.go
+++ b/app/boot_levels.go
@@ -4,10 +4,9 @@ import (
 	"context"
 	"crypto/tls"
 	"fmt"
-	"time"
-
 	cmpService "github.com/cortezaproject/corteza-server/compose/service"
 	cmpEvent "github.com/cortezaproject/corteza-server/compose/service/event"
+	fdrService "github.com/cortezaproject/corteza-server/federation/service"
 	msgService "github.com/cortezaproject/corteza-server/messaging/service"
 	msgEvent "github.com/cortezaproject/corteza-server/messaging/service/event"
 	"github.com/cortezaproject/corteza-server/messaging/websocket"
@@ -30,6 +29,7 @@ import (
 	sysEvent "github.com/cortezaproject/corteza-server/system/service/event"
 	"go.uber.org/zap"
 	gomail "gopkg.in/mail.v2"
+	"time"
 )
 
 const (
@@ -238,6 +238,21 @@ func (app *CortezaApp) InitServices(ctx context.Context) (err error) {
 		PingPeriod:  app.Opt.Websocket.PingPeriod,
 	})
 
+	// Initializes federation services
+	//
+	// Note: this is a legacy approach, all services from all 3 apps
+	// will most likely be merged in the future
+	err = fdrService.Initialize(ctx, app.Log, app.Store, fdrService.Config{
+		ActionLog: app.Opt.ActionLog,
+	})
+
+	if err != nil {
+		return
+	}
+
+	// Initialize external authentication (from default settings)
+	external.Init()
+
 	app.lvl = bootLevelServicesInitialized
 	return
 }
diff --git a/federation/service/service.go b/federation/service/service.go
new file mode 100644
index 000000000..546e9178d
--- /dev/null
+++ b/federation/service/service.go
@@ -0,0 +1,121 @@
+package service
+
+import (
+	"context"
+	"time"
+
+	"github.com/cortezaproject/corteza-server/pkg/actionlog"
+	"github.com/cortezaproject/corteza-server/pkg/healthcheck"
+	"github.com/cortezaproject/corteza-server/pkg/id"
+	"github.com/cortezaproject/corteza-server/pkg/options"
+	"github.com/cortezaproject/corteza-server/pkg/store"
+	"github.com/cortezaproject/corteza-server/pkg/store/minio"
+	"github.com/cortezaproject/corteza-server/pkg/store/plain"
+	ngStore "github.com/cortezaproject/corteza-server/store"
+	"github.com/cortezaproject/corteza-server/system/types"
+	"go.uber.org/zap"
+)
+
+type (
+	Config struct {
+		ActionLog options.ActionLogOpt
+		Storage   options.StorageOpt
+	}
+)
+
+var (
+	DefaultStore store.Store
+
+	// DefaultNgStore is an interface to storage backend(s)
+	// ng (next-gen) is a temporary prefix
+	// so that we can differentiate between it and the file-only store
+	DefaultNgStore ngStore.Storable
+
+	DefaultLogger *zap.Logger
+
+	// CurrentSettings represents current system settings
+	CurrentSettings = &types.AppSettings{}
+
+	DefaultActionlog actionlog.Recorder
+
+	// wrapper around time.Now() that will aid service testing
+	now = func() time.Time {
+		return time.Now()
+	}
+
+	// returns pointer to time.Time struct that is set to current time
+	nowPtr = func() *time.Time {
+		n := now()
+		return &n
+	}
+
+	// wrapper around id.Next() that will aid service testing
+	nextID = func() uint64 {
+		return id.Next()
+	}
+)
+
+func Initialize(ctx context.Context, log *zap.Logger, s ngStore.Storable, c Config) (err error) {
+	var (
+		hcd = healthcheck.Defaults()
+	)
+
+	// we're doing conversion to avoid having
+	// store interface exposed or generated inside app package
+	DefaultNgStore = s
+
+	DefaultLogger = log.Named("service")
+
+	{
+		tee := zap.NewNop()
+		policy := actionlog.MakeProductionPolicy()
+
+		if !c.ActionLog.Enabled {
+			policy = actionlog.MakeDisabledPolicy()
+		} else if c.ActionLog.Debug {
+			policy = actionlog.MakeDebugPolicy()
+			tee = log
+		}
+
+		DefaultActionlog = actionlog.NewService(DefaultNgStore, log, tee, policy)
+	}
+
+	if DefaultStore == nil {
+		const svcPath = "federation"
+		if c.Storage.MinioEndpoint != "" {
+			var bucket = svcPath
+			if c.Storage.MinioBucket != "" {
+				bucket = c.Storage.MinioBucket + "/" + svcPath
+			}
+
+			DefaultStore, err = minio.New(bucket, minio.Options{
+				Endpoint:        c.Storage.MinioEndpoint,
+				Secure:          c.Storage.MinioSecure,
+				Strict:          c.Storage.MinioStrict,
+				AccessKeyID:     c.Storage.MinioAccessKey,
+				SecretAccessKey: c.Storage.MinioSecretKey,
+
+				ServerSideEncryptKey: []byte(c.Storage.MinioSSECKey),
+			})
+
+			log.Info("initializing minio",
+				zap.String("bucket", bucket),
+				zap.String("endpoint", c.Storage.MinioEndpoint),
+				zap.Error(err))
+		} else {
+			path := c.Storage.Path + "/" + svcPath
+			DefaultStore, err = plain.New(path)
+			log.Info("initializing store",
+				zap.String("path", path),
+				zap.Error(err))
+		}
+
+		if err != nil {
+			return err
+		}
+	}
+
+	hcd.Add(store.Healthcheck(DefaultStore), "Store/Federation")
+
+	return
+}