diff --git a/PENDING.md b/PENDING.md
index 4828030dc5..96e8209a08 100644
--- a/PENDING.md
+++ b/PENDING.md
@@ -9,6 +9,11 @@ BREAKING CHANGES
 * Gaia
 
 * SDK
+ * \#3592 Drop deprecated keybase implementation's
+   New constructor in favor of a new
+   crypto/keys.New(string, string) implementation that
+   returns a lazy keybase instance. Remove client.MockKeyBase,
+   superseded by crypto/keys.NewInMemory()
 
 * Tendermint
 
diff --git a/client/keys.go b/client/keys.go
deleted file mode 100644
index 3e0b61d461..0000000000
--- a/client/keys.go
+++ /dev/null
@@ -1,14 +0,0 @@
-package client
-
-import (
-	dbm "github.com/tendermint/tendermint/libs/db"
-
-	"github.com/cosmos/cosmos-sdk/crypto/keys"
-)
-
-// MockKeyBase generates an in-memory keybase that will be discarded
-// useful for --dry-run to generate a seed phrase without
-// storing the key
-func MockKeyBase() keys.Keybase {
-	return keys.New(dbm.NewMemDB())
-}
diff --git a/client/keys/add.go b/client/keys/add.go
index 47b9a19a1f..9b437a340b 100644
--- a/client/keys/add.go
+++ b/client/keys/add.go
@@ -104,7 +104,7 @@ func runAddCmd(_ *cobra.Command, args []string) error {
 	if viper.GetBool(flagDryRun) {
 		// we throw this away, so don't enforce args,
 		// we want to get a new random seed phrase quickly
-		kb = client.MockKeyBase()
+		kb = keys.NewInMemory()
 		encryptPassword = app.DefaultKeyPass
 	} else {
 		kb, err = NewKeyBaseFromHomeFlag()
@@ -309,7 +309,7 @@ func printCreate(info keys.Info, showMnemonic bool, mnemonic string) error {
 
 // function to just create a new seed to display in the UI before actually persisting it in the keybase
 func generateMnemonic(algo keys.SigningAlgo) string {
-	kb := client.MockKeyBase()
+	kb := keys.NewInMemory()
 	pass := app.DefaultKeyPass
 	name := "inmemorykey"
 	_, seed, _ := kb.CreateMnemonic(name, keys.English, pass, algo)
diff --git a/client/keys/keys/keys.db/LOCK b/client/keys/keys/keys.db/LOCK
deleted file mode 100644
index e69de29bb2..0000000000
diff --git a/client/keys/utils.go b/client/keys/utils.go
index d772b81514..d5c2f2f55b 100644
--- a/client/keys/utils.go
+++ b/client/keys/utils.go
@@ -14,11 +14,13 @@ import (
 	sdk "github.com/cosmos/cosmos-sdk/types"
 )
 
-// KeyDBName is the directory under root where we store the keys
+// available output formats.
 const (
-	KeyDBName        = "keys"
 	OutputFormatText = "text"
 	OutputFormatJSON = "json"
+
+	// defaultKeyDBName is the client's subdirectory where keys are stored.
+	defaultKeyDBName = "keys"
 )
 
 type bechKeyOutFn func(keyInfo keys.Info) (KeyOutput, error)
@@ -87,7 +89,7 @@ func NewKeyBaseFromDir(rootDir string) (keys.Keybase, error) {
 func NewInMemoryKeyBase() keys.Keybase { return keys.NewInMemory() }
 
 func getLazyKeyBaseFromDir(rootDir string) (keys.Keybase, error) {
-	return keys.NewLazyKeybase(KeyDBName, filepath.Join(rootDir, "keys")), nil
+	return keys.New(defaultKeyDBName, filepath.Join(rootDir, "keys")), nil
 }
 
 // create a list of KeyOutput in bech32 format
diff --git a/client/lcd/test_helpers.go b/client/lcd/test_helpers.go
index 9e6f08fe9a..ae126ef1d5 100644
--- a/client/lcd/test_helpers.go
+++ b/client/lcd/test_helpers.go
@@ -682,7 +682,7 @@ func doTransferWithGas(
 ) (res *http.Response, body string, receiveAddr sdk.AccAddress) {
 
 	// create receive address
-	kb := client.MockKeyBase()
+	kb := crkeys.NewInMemory()
 
 	receiveInfo, _, err := kb.CreateMnemonic(
 		"receive_address", crkeys.English, gapp.DefaultKeyPass, crkeys.SigningAlgo("secp256k1"),
@@ -724,7 +724,7 @@ func doTransferWithGasAccAuto(
 ) (res *http.Response, body string, receiveAddr sdk.AccAddress) {
 
 	// create receive address
-	kb := client.MockKeyBase()
+	kb := crkeys.NewInMemory()
 
 	receiveInfo, _, err := kb.CreateMnemonic(
 		"receive_address", crkeys.English, gapp.DefaultKeyPass, crkeys.SigningAlgo("secp256k1"),
diff --git a/crypto/keys/keybase.go b/crypto/keys/keybase.go
index 5d911ea616..f79ed20253 100644
--- a/crypto/keys/keybase.go
+++ b/crypto/keys/keybase.go
@@ -77,14 +77,15 @@ type dbKeybase struct {
 	db dbm.DB
 }
 
-// New creates a new keybase instance using the passed DB for reading and writing keys.
-func New(db dbm.DB) Keybase {
+// newDbKeybase creates a new keybase instance using the passed DB for reading and writing keys.
+func newDbKeybase(db dbm.DB) Keybase {
 	return dbKeybase{
 		db: db,
 	}
 }
 
-// NewInMemory creates a new keybase on top of in-memory storage instance.
+// NewInMemory creates a transient keybase on top of in-memory storage
+// instance useful for testing purposes and on-the-fly key generation.
 func NewInMemory() Keybase { return dbKeybase{dbm.NewMemDB()} }
 
 // CreateMnemonic generates a new key and persists it to storage, encrypted
diff --git a/crypto/keys/keybase_test.go b/crypto/keys/keybase_test.go
index 6ccbcfb2a6..330cee4f3e 100644
--- a/crypto/keys/keybase_test.go
+++ b/crypto/keys/keybase_test.go
@@ -1,51 +1,34 @@
-package keys
+package keys_test
 
 import (
 	"fmt"
-	"io/ioutil"
 	"testing"
 
 	"github.com/stretchr/testify/assert"
 	"github.com/stretchr/testify/require"
 
+	. "github.com/cosmos/cosmos-sdk/crypto/keys"
 	"github.com/cosmos/cosmos-sdk/crypto/keys/hd"
 	"github.com/cosmos/cosmos-sdk/crypto/keys/mintkey"
 	"github.com/cosmos/cosmos-sdk/types"
 	sdk "github.com/cosmos/cosmos-sdk/types"
 	"github.com/tendermint/tendermint/crypto"
 	"github.com/tendermint/tendermint/crypto/ed25519"
-	dbm "github.com/tendermint/tendermint/libs/db"
 )
 
 func init() {
 	mintkey.BcryptSecurityParameter = 1
 }
 
-func TestKeybaseOpenClose(t *testing.T) {
-	dir, err := ioutil.TempDir("", "TestKeybaseOpenClose")
-	assert.Nil(t, err)
-
-	kb := New(dbm.NewDB("TestKeybaseOpenClose", dbm.LevelDBBackend, dir))
-	kb.CloseDB()
-
-	// The DB has been closed. At the moment, the expected behaviour is to panic
-	assert.Panics(t, func() {
-		_, _ = kb.CreateAccount(
-			"some_account",
-			"key pair crucial catch public canyon evil outer stage ten gym tornado",
-			"", "", 0, 1)
-	})
-}
-
 func TestLanguage(t *testing.T) {
-	kb := New(dbm.NewMemDB())
+	kb := NewInMemory()
 	_, _, err := kb.CreateMnemonic("something", Japanese, "no_pass", Secp256k1)
 	assert.Error(t, err)
 	assert.Equal(t, "unsupported language: only english is supported", err.Error())
 }
 
 func TestCreateAccountInvalidMnemonic(t *testing.T) {
-	kb := New(dbm.NewMemDB())
+	kb := NewInMemory()
 	_, err := kb.CreateAccount(
 		"some_account",
 		"malarkey pair crucial catch public canyon evil outer stage ten gym tornado",
@@ -55,14 +38,14 @@ func TestCreateAccountInvalidMnemonic(t *testing.T) {
 }
 
 func TestCreateLedgerUnsupportedAlgo(t *testing.T) {
-	kb := New(dbm.NewMemDB())
+	kb := NewInMemory()
 	_, err := kb.CreateLedger("some_account", Ed25519, 0, 1)
 	assert.Error(t, err)
 	assert.Equal(t, "unsupported signing algo: only secp256k1 is supported", err.Error())
 }
 
 func TestCreateLedger(t *testing.T) {
-	kb := New(dbm.NewMemDB())
+	kb := NewInMemory()
 
 	// test_cover and test_unit will result in different answers
 	// test_cover does not compile some dependencies so ledger is disabled
@@ -101,8 +84,7 @@ func TestCreateLedger(t *testing.T) {
 // TestKeyManagement makes sure we can manipulate these keys well
 func TestKeyManagement(t *testing.T) {
 	// make the storage with reasonable defaults
-	db := dbm.NewMemDB()
-	cstore := New(db)
+	cstore := NewInMemory()
 
 	algo := Secp256k1
 	n1, n2, n3 := "personal", "business", "other"
@@ -180,13 +162,12 @@ func TestKeyManagement(t *testing.T) {
 	// addr cache gets nuked - and test skip flag
 	err = cstore.Delete(n2, "", true)
 	require.NoError(t, err)
-	require.False(t, db.Has(addrKey(i2.GetAddress())))
 }
 
 // TestSignVerify does some detailed checks on how we sign and validate
 // signatures
 func TestSignVerify(t *testing.T) {
-	cstore := New(dbm.NewMemDB())
+	cstore := NewInMemory()
 	algo := Secp256k1
 
 	n1, n2, n3 := "some dude", "a dudette", "dude-ish"
@@ -268,12 +249,8 @@ func assertPassword(t *testing.T, cstore Keybase, name, pass, badpass string) {
 
 // TestExportImport tests exporting and importing
 func TestExportImport(t *testing.T) {
-
 	// make the storage with reasonable defaults
-	db := dbm.NewMemDB()
-	cstore := New(
-		db,
-	)
+	cstore := NewInMemory()
 
 	info, _, err := cstore.CreateMnemonic("john", English, "secretcpw", Secp256k1)
 	require.NoError(t, err)
@@ -301,10 +278,7 @@ func TestExportImport(t *testing.T) {
 //
 func TestExportImportPubKey(t *testing.T) {
 	// make the storage with reasonable defaults
-	db := dbm.NewMemDB()
-	cstore := New(
-		db,
-	)
+	cstore := NewInMemory()
 
 	// CreateMnemonic a private-public key pair and ensure consistency
 	notPasswd := "n9y25ah7"
@@ -342,11 +316,8 @@ func TestExportImportPubKey(t *testing.T) {
 
 // TestAdvancedKeyManagement verifies update, import, export functionality
 func TestAdvancedKeyManagement(t *testing.T) {
-
 	// make the storage with reasonable defaults
-	cstore := New(
-		dbm.NewMemDB(),
-	)
+	cstore := NewInMemory()
 
 	algo := Secp256k1
 	n1, n2 := "old-name", "new name"
@@ -394,9 +365,7 @@ func TestAdvancedKeyManagement(t *testing.T) {
 func TestSeedPhrase(t *testing.T) {
 
 	// make the storage with reasonable defaults
-	cstore := New(
-		dbm.NewMemDB(),
-	)
+	cstore := NewInMemory()
 
 	algo := Secp256k1
 	n1, n2 := "lost-key", "found-again"
@@ -425,9 +394,7 @@ func TestSeedPhrase(t *testing.T) {
 
 func ExampleNew() {
 	// Select the encryption and storage for your cryptostore
-	cstore := New(
-		dbm.NewMemDB(),
-	)
+	cstore := NewInMemory()
 
 	sec := Secp256k1
 
diff --git a/crypto/keys/lazy_keybase.go b/crypto/keys/lazy_keybase.go
index c260839722..ce3a371c8f 100644
--- a/crypto/keys/lazy_keybase.go
+++ b/crypto/keys/lazy_keybase.go
@@ -15,7 +15,8 @@ type lazyKeybase struct {
 	dir  string
 }
 
-func NewLazyKeybase(name, dir string) Keybase {
+// New creates a new instance of a lazy keybase.
+func New(name, dir string) Keybase {
 	return lazyKeybase{name: name, dir: dir}
 }
 
@@ -25,7 +26,7 @@ func (lkb lazyKeybase) List() ([]Info, error) {
 		return nil, err
 	}
 	defer db.Close()
-	return New(db).List()
+	return newDbKeybase(db).List()
 }
 
 func (lkb lazyKeybase) Get(name string) (Info, error) {
@@ -34,7 +35,7 @@ func (lkb lazyKeybase) Get(name string) (Info, error) {
 		return nil, err
 	}
 	defer db.Close()
-	return New(db).Get(name)
+	return newDbKeybase(db).Get(name)
 }
 
 func (lkb lazyKeybase) GetByAddress(address types.AccAddress) (Info, error) {
@@ -43,7 +44,7 @@ func (lkb lazyKeybase) GetByAddress(address types.AccAddress) (Info, error) {
 		return nil, err
 	}
 	defer db.Close()
-	return New(db).GetByAddress(address)
+	return newDbKeybase(db).GetByAddress(address)
 }
 
 func (lkb lazyKeybase) Delete(name, passphrase string, skipPass bool) error {
@@ -52,7 +53,7 @@ func (lkb lazyKeybase) Delete(name, passphrase string, skipPass bool) error {
 		return err
 	}
 	defer db.Close()
-	return New(db).Delete(name, passphrase, skipPass)
+	return newDbKeybase(db).Delete(name, passphrase, skipPass)
 }
 
 func (lkb lazyKeybase) Sign(name, passphrase string, msg []byte) ([]byte, crypto.PubKey, error) {
@@ -61,7 +62,7 @@ func (lkb lazyKeybase) Sign(name, passphrase string, msg []byte) ([]byte, crypto
 		return nil, nil, err
 	}
 	defer db.Close()
-	return New(db).Sign(name, passphrase, msg)
+	return newDbKeybase(db).Sign(name, passphrase, msg)
 }
 
 func (lkb lazyKeybase) CreateMnemonic(name string, language Language, passwd string, algo SigningAlgo) (info Info, seed string, err error) {
@@ -70,7 +71,7 @@ func (lkb lazyKeybase) CreateMnemonic(name string, language Language, passwd str
 		return nil, "", err
 	}
 	defer db.Close()
-	return New(db).CreateMnemonic(name, language, passwd, algo)
+	return newDbKeybase(db).CreateMnemonic(name, language, passwd, algo)
 }
 
 func (lkb lazyKeybase) CreateAccount(name, mnemonic, bip39Passwd, encryptPasswd string, account uint32, index uint32) (Info, error) {
@@ -79,7 +80,7 @@ func (lkb lazyKeybase) CreateAccount(name, mnemonic, bip39Passwd, encryptPasswd
 		return nil, err
 	}
 	defer db.Close()
-	return New(db).CreateAccount(name, mnemonic, bip39Passwd, encryptPasswd, account, index)
+	return newDbKeybase(db).CreateAccount(name, mnemonic, bip39Passwd, encryptPasswd, account, index)
 }
 
 func (lkb lazyKeybase) Derive(name, mnemonic, bip39Passwd, encryptPasswd string, params hd.BIP44Params) (Info, error) {
@@ -88,7 +89,7 @@ func (lkb lazyKeybase) Derive(name, mnemonic, bip39Passwd, encryptPasswd string,
 		return nil, err
 	}
 	defer db.Close()
-	return New(db).Derive(name, mnemonic, bip39Passwd, encryptPasswd, params)
+	return newDbKeybase(db).Derive(name, mnemonic, bip39Passwd, encryptPasswd, params)
 }
 
 func (lkb lazyKeybase) CreateLedger(name string, algo SigningAlgo, account uint32, index uint32) (info Info, err error) {
@@ -97,7 +98,7 @@ func (lkb lazyKeybase) CreateLedger(name string, algo SigningAlgo, account uint3
 		return nil, err
 	}
 	defer db.Close()
-	return New(db).CreateLedger(name, algo, account, index)
+	return newDbKeybase(db).CreateLedger(name, algo, account, index)
 }
 
 func (lkb lazyKeybase) CreateOffline(name string, pubkey crypto.PubKey) (info Info, err error) {
@@ -106,7 +107,7 @@ func (lkb lazyKeybase) CreateOffline(name string, pubkey crypto.PubKey) (info In
 		return nil, err
 	}
 	defer db.Close()
-	return New(db).CreateOffline(name, pubkey)
+	return newDbKeybase(db).CreateOffline(name, pubkey)
 }
 
 func (lkb lazyKeybase) Update(name, oldpass string, getNewpass func() (string, error)) error {
@@ -115,7 +116,7 @@ func (lkb lazyKeybase) Update(name, oldpass string, getNewpass func() (string, e
 		return err
 	}
 	defer db.Close()
-	return New(db).Update(name, oldpass, getNewpass)
+	return newDbKeybase(db).Update(name, oldpass, getNewpass)
 }
 
 func (lkb lazyKeybase) Import(name string, armor string) (err error) {
@@ -124,7 +125,7 @@ func (lkb lazyKeybase) Import(name string, armor string) (err error) {
 		return err
 	}
 	defer db.Close()
-	return New(db).Import(name, armor)
+	return newDbKeybase(db).Import(name, armor)
 }
 
 func (lkb lazyKeybase) ImportPubKey(name string, armor string) (err error) {
@@ -133,7 +134,7 @@ func (lkb lazyKeybase) ImportPubKey(name string, armor string) (err error) {
 		return err
 	}
 	defer db.Close()
-	return New(db).ImportPubKey(name, armor)
+	return newDbKeybase(db).ImportPubKey(name, armor)
 }
 
 func (lkb lazyKeybase) Export(name string) (armor string, err error) {
@@ -142,7 +143,7 @@ func (lkb lazyKeybase) Export(name string) (armor string, err error) {
 		return "", err
 	}
 	defer db.Close()
-	return New(db).Export(name)
+	return newDbKeybase(db).Export(name)
 }
 
 func (lkb lazyKeybase) ExportPubKey(name string) (armor string, err error) {
@@ -151,7 +152,7 @@ func (lkb lazyKeybase) ExportPubKey(name string) (armor string, err error) {
 		return "", err
 	}
 	defer db.Close()
-	return New(db).ExportPubKey(name)
+	return newDbKeybase(db).ExportPubKey(name)
 }
 
 func (lkb lazyKeybase) ExportPrivateKeyObject(name string, passphrase string) (crypto.PrivKey, error) {
@@ -160,7 +161,7 @@ func (lkb lazyKeybase) ExportPrivateKeyObject(name string, passphrase string) (c
 		return nil, err
 	}
 	defer db.Close()
-	return New(db).ExportPrivateKeyObject(name, passphrase)
+	return newDbKeybase(db).ExportPrivateKeyObject(name, passphrase)
 }
 
 func (lkb lazyKeybase) CloseDB() {}