diff --git a/src/Makefile.am b/src/Makefile.am
index 5d7eafb3f..1dd202085 100644
--- a/src/Makefile.am
+++ b/src/Makefile.am
@@ -139,6 +139,7 @@ BITCOIN_CORE_H = \
   netbase.h \
   netmessagemaker.h \
   noui.h \
+  outputtype.h \
   policy/feerate.h \
   policy/fees.h \
   policy/policy.h \
@@ -230,6 +231,7 @@ libbitcoin_server_a_SOURCES = \
   net.cpp \
   net_processing.cpp \
   noui.cpp \
+  outputtype.cpp \
   policy/fees.cpp \
   policy/policy.cpp \
   policy/rbf.cpp \
diff --git a/src/outputtype.cpp b/src/outputtype.cpp
new file mode 100644
index 000000000..3ff28bf9c
--- /dev/null
+++ b/src/outputtype.cpp
@@ -0,0 +1,101 @@
+// Copyright (c) 2009-2010 Satoshi Nakamoto
+// Copyright (c) 2009-2017 The Bitcoin Core developers
+// Distributed under the MIT software license, see the accompanying
+// file COPYING or http://www.opensource.org/licenses/mit-license.php.
+
+#include <outputtype.h>
+
+#include <keystore.h>
+#include <pubkey.h>
+#include <script/script.h>
+#include <script/standard.h>
+
+#include <assert.h>
+#include <string>
+
+static const std::string OUTPUT_TYPE_STRING_LEGACY = "legacy";
+static const std::string OUTPUT_TYPE_STRING_P2SH_SEGWIT = "p2sh-segwit";
+static const std::string OUTPUT_TYPE_STRING_BECH32 = "bech32";
+
+bool ParseOutputType(const std::string& type, OutputType& output_type)
+{
+    if (type == OUTPUT_TYPE_STRING_LEGACY) {
+        output_type = OutputType::LEGACY;
+        return true;
+    } else if (type == OUTPUT_TYPE_STRING_P2SH_SEGWIT) {
+        output_type = OutputType::P2SH_SEGWIT;
+        return true;
+    } else if (type == OUTPUT_TYPE_STRING_BECH32) {
+        output_type = OutputType::BECH32;
+        return true;
+    }
+    return false;
+}
+
+const std::string& FormatOutputType(OutputType type)
+{
+    switch (type) {
+    case OutputType::LEGACY: return OUTPUT_TYPE_STRING_LEGACY;
+    case OutputType::P2SH_SEGWIT: return OUTPUT_TYPE_STRING_P2SH_SEGWIT;
+    case OutputType::BECH32: return OUTPUT_TYPE_STRING_BECH32;
+    default: assert(false);
+    }
+}
+
+CTxDestination GetDestinationForKey(const CPubKey& key, OutputType type)
+{
+    switch (type) {
+    case OutputType::LEGACY: return key.GetID();
+    case OutputType::P2SH_SEGWIT:
+    case OutputType::BECH32: {
+        if (!key.IsCompressed()) return key.GetID();
+        CTxDestination witdest = WitnessV0KeyHash(key.GetID());
+        CScript witprog = GetScriptForDestination(witdest);
+        if (type == OutputType::P2SH_SEGWIT) {
+            return CScriptID(witprog);
+        } else {
+            return witdest;
+        }
+    }
+    default: assert(false);
+    }
+}
+
+std::vector<CTxDestination> GetAllDestinationsForKey(const CPubKey& key)
+{
+    CKeyID keyid = key.GetID();
+    if (key.IsCompressed()) {
+        CTxDestination segwit = WitnessV0KeyHash(keyid);
+        CTxDestination p2sh = CScriptID(GetScriptForDestination(segwit));
+        return std::vector<CTxDestination>{std::move(keyid), std::move(p2sh), std::move(segwit)};
+    } else {
+        return std::vector<CTxDestination>{std::move(keyid)};
+    }
+}
+
+CTxDestination AddAndGetDestinationForScript(CKeyStore& keystore, const CScript& script, OutputType type)
+{
+    // Add script to keystore
+    keystore.AddCScript(script);
+    // Note that scripts over 520 bytes are not yet supported.
+    switch (type) {
+    case OutputType::LEGACY:
+        return CScriptID(script);
+    case OutputType::P2SH_SEGWIT:
+    case OutputType::BECH32: {
+        CTxDestination witdest = WitnessV0ScriptHash(script);
+        CScript witprog = GetScriptForDestination(witdest);
+        // Check if the resulting program is solvable (i.e. doesn't use an uncompressed key)
+        if (!IsSolvable(keystore, witprog)) return CScriptID(script);
+        // Add the redeemscript, so that P2WSH and P2SH-P2WSH outputs are recognized as ours.
+        keystore.AddCScript(witprog);
+        if (type == OutputType::BECH32) {
+            return witdest;
+        } else {
+            return CScriptID(witprog);
+        }
+    }
+    default: assert(false);
+    }
+}
+
diff --git a/src/outputtype.h b/src/outputtype.h
new file mode 100644
index 000000000..21623e3b4
--- /dev/null
+++ b/src/outputtype.h
@@ -0,0 +1,49 @@
+// Copyright (c) 2009-2010 Satoshi Nakamoto
+// Copyright (c) 2009-2017 The Bitcoin Core developers
+// Distributed under the MIT software license, see the accompanying
+// file COPYING or http://www.opensource.org/licenses/mit-license.php.
+
+#ifndef BITCOIN_OUTPUTTYPE_H
+#define BITCOIN_OUTPUTTYPE_H
+
+#include <keystore.h>
+#include <script/standard.h>
+
+#include <string>
+#include <vector>
+
+enum class OutputType {
+    LEGACY,
+    P2SH_SEGWIT,
+    BECH32,
+
+    /**
+     * Special output type for change outputs only. Automatically choose type
+     * based on address type setting and the types other of non-change outputs
+     * (see -changetype option documentation and implementation in
+     * CWallet::TransactionChangeType for details).
+     */
+    CHANGE_AUTO,
+};
+
+bool ParseOutputType(const std::string& str, OutputType& output_type);
+const std::string& FormatOutputType(OutputType type);
+
+/**
+ * Get a destination of the requested type (if possible) to the specified key.
+ * The caller must make sure LearnRelatedScripts has been called beforehand.
+ */
+CTxDestination GetDestinationForKey(const CPubKey& key, OutputType);
+
+/** Get all destinations (potentially) supported by the wallet for the given key. */
+std::vector<CTxDestination> GetAllDestinationsForKey(const CPubKey& key);
+
+/**
+ * Get a destination of the requested type (if possible) to the specified script.
+ * This function will automatically add the script (and any other
+ * necessary scripts) to the keystore.
+ */
+CTxDestination AddAndGetDestinationForScript(CKeyStore& keystore, const CScript& script, OutputType);
+
+#endif // BITCOIN_OUTPUTTYPE_H
+
diff --git a/src/rpc/misc.cpp b/src/rpc/misc.cpp
index 4eeb7f29d..09812bb98 100644
--- a/src/rpc/misc.cpp
+++ b/src/rpc/misc.cpp
@@ -12,6 +12,7 @@
 #include <httpserver.h>
 #include <net.h>
 #include <netbase.h>
+#include <outputtype.h>
 #include <rpc/blockchain.h>
 #include <rpc/server.h>
 #include <rpc/util.h>
@@ -91,9 +92,9 @@ class CWallet;
 
 static UniValue createmultisig(const JSONRPCRequest& request)
 {
-    if (request.fHelp || request.params.size() < 2 || request.params.size() > 2)
+    if (request.fHelp || request.params.size() < 2 || request.params.size() > 3)
     {
-        std::string msg = "createmultisig nrequired [\"key\",...]\n"
+        std::string msg = "createmultisig nrequired [\"key\",...] ( \"address_type\" )\n"
             "\nCreates a multi-signature address with n signature of m keys required.\n"
             "It returns a json object with the address and redeemScript.\n"
             "\nArguments:\n"
@@ -103,6 +104,7 @@ static UniValue createmultisig(const JSONRPCRequest& request)
             "       \"key\"                    (string) The hex-encoded public key\n"
             "       ,...\n"
             "     ]\n"
+            "3. \"address_type\"               (string, optional) The address type to use. Options are \"legacy\", \"p2sh-segwit\", and \"bech32\". Default is legacy.\n"
 
             "\nResult:\n"
             "{\n"
@@ -133,12 +135,21 @@ static UniValue createmultisig(const JSONRPCRequest& request)
         }
     }
 
+    // Get the output type
+    OutputType output_type = OutputType::LEGACY;
+    if (!request.params[2].isNull()) {
+        if (!ParseOutputType(request.params[2].get_str(), output_type)) {
+            throw JSONRPCError(RPC_INVALID_ADDRESS_OR_KEY, strprintf("Unknown address type '%s'", request.params[2].get_str()));
+        }
+    }
+
     // Construct using pay-to-script-hash:
-    CScript inner = CreateMultisigRedeemscript(required, pubkeys);
-    CScriptID innerID(inner);
+    const CScript inner = CreateMultisigRedeemscript(required, pubkeys);
+    CBasicKeyStore keystore;
+    const CTxDestination dest = AddAndGetDestinationForScript(keystore, inner, output_type);
 
     UniValue result(UniValue::VOBJ);
-    result.pushKV("address", EncodeDestination(innerID));
+    result.pushKV("address", EncodeDestination(dest));
     result.pushKV("redeemScript", HexStr(inner.begin(), inner.end()));
 
     return result;
diff --git a/src/wallet/init.cpp b/src/wallet/init.cpp
index 74312b712..076134cdd 100644
--- a/src/wallet/init.cpp
+++ b/src/wallet/init.cpp
@@ -7,6 +7,7 @@
 #include <init.h>
 #include <net.h>
 #include <scheduler.h>
+#include <outputtype.h>
 #include <util.h>
 #include <utilmoneystr.h>
 #include <validation.h>
diff --git a/src/wallet/rpcwallet.cpp b/src/wallet/rpcwallet.cpp
index 3530030e3..893310cf2 100644
--- a/src/wallet/rpcwallet.cpp
+++ b/src/wallet/rpcwallet.cpp
@@ -11,6 +11,7 @@
 #include <validation.h>
 #include <key_io.h>
 #include <net.h>
+#include <outputtype.h>
 #include <policy/feerate.h>
 #include <policy/fees.h>
 #include <policy/policy.h>
@@ -1369,8 +1370,7 @@ static UniValue addmultisigaddress(const JSONRPCRequest& request)
 
     // Construct using pay-to-script-hash:
     CScript inner = CreateMultisigRedeemscript(required, pubkeys);
-    pwallet->AddCScript(inner);
-    CTxDestination dest = pwallet->AddAndGetDestinationForScript(inner, output_type);
+    CTxDestination dest = AddAndGetDestinationForScript(*pwallet, inner, output_type);
     pwallet->SetAddressBook(dest, label, "send");
 
     UniValue result(UniValue::VOBJ);
diff --git a/src/wallet/wallet.cpp b/src/wallet/wallet.cpp
index c9553d0d0..38f4de963 100644
--- a/src/wallet/wallet.cpp
+++ b/src/wallet/wallet.cpp
@@ -4362,35 +4362,6 @@ bool CWalletTx::AcceptToMemoryPool(const CAmount& nAbsurdFee, CValidationState&
     return ret;
 }
 
-static const std::string OUTPUT_TYPE_STRING_LEGACY = "legacy";
-static const std::string OUTPUT_TYPE_STRING_P2SH_SEGWIT = "p2sh-segwit";
-static const std::string OUTPUT_TYPE_STRING_BECH32 = "bech32";
-
-bool ParseOutputType(const std::string& type, OutputType& output_type)
-{
-    if (type == OUTPUT_TYPE_STRING_LEGACY) {
-        output_type = OutputType::LEGACY;
-        return true;
-    } else if (type == OUTPUT_TYPE_STRING_P2SH_SEGWIT) {
-        output_type = OutputType::P2SH_SEGWIT;
-        return true;
-    } else if (type == OUTPUT_TYPE_STRING_BECH32) {
-        output_type = OutputType::BECH32;
-        return true;
-    }
-    return false;
-}
-
-const std::string& FormatOutputType(OutputType type)
-{
-    switch (type) {
-    case OutputType::LEGACY: return OUTPUT_TYPE_STRING_LEGACY;
-    case OutputType::P2SH_SEGWIT: return OUTPUT_TYPE_STRING_P2SH_SEGWIT;
-    case OutputType::BECH32: return OUTPUT_TYPE_STRING_BECH32;
-    default: assert(false);
-    }
-}
-
 void CWallet::LearnRelatedScripts(const CPubKey& key, OutputType type)
 {
     if (key.IsCompressed() && (type == OutputType::P2SH_SEGWIT || type == OutputType::BECH32)) {
@@ -4408,57 +4379,3 @@ void CWallet::LearnAllRelatedScripts(const CPubKey& key)
     LearnRelatedScripts(key, OutputType::P2SH_SEGWIT);
 }
 
-CTxDestination GetDestinationForKey(const CPubKey& key, OutputType type)
-{
-    switch (type) {
-    case OutputType::LEGACY: return key.GetID();
-    case OutputType::P2SH_SEGWIT:
-    case OutputType::BECH32: {
-        if (!key.IsCompressed()) return key.GetID();
-        CTxDestination witdest = WitnessV0KeyHash(key.GetID());
-        CScript witprog = GetScriptForDestination(witdest);
-        if (type == OutputType::P2SH_SEGWIT) {
-            return CScriptID(witprog);
-        } else {
-            return witdest;
-        }
-    }
-    default: assert(false);
-    }
-}
-
-std::vector<CTxDestination> GetAllDestinationsForKey(const CPubKey& key)
-{
-    CKeyID keyid = key.GetID();
-    if (key.IsCompressed()) {
-        CTxDestination segwit = WitnessV0KeyHash(keyid);
-        CTxDestination p2sh = CScriptID(GetScriptForDestination(segwit));
-        return std::vector<CTxDestination>{std::move(keyid), std::move(p2sh), std::move(segwit)};
-    } else {
-        return std::vector<CTxDestination>{std::move(keyid)};
-    }
-}
-
-CTxDestination CWallet::AddAndGetDestinationForScript(const CScript& script, OutputType type)
-{
-    // Note that scripts over 520 bytes are not yet supported.
-    switch (type) {
-    case OutputType::LEGACY:
-        return CScriptID(script);
-    case OutputType::P2SH_SEGWIT:
-    case OutputType::BECH32: {
-        CTxDestination witdest = WitnessV0ScriptHash(script);
-        CScript witprog = GetScriptForDestination(witdest);
-        // Check if the resulting program is solvable (i.e. doesn't use an uncompressed key)
-        if (!IsSolvable(*this, witprog)) return CScriptID(script);
-        // Add the redeemscript, so that P2WSH and P2SH-P2WSH outputs are recognized as ours.
-        AddCScript(witprog);
-        if (type == OutputType::BECH32) {
-            return witdest;
-        } else {
-            return CScriptID(witprog);
-        }
-    }
-    default: assert(false);
-    }
-}
diff --git a/src/wallet/wallet.h b/src/wallet/wallet.h
index 3cb396d7d..2e53ca0c5 100644
--- a/src/wallet/wallet.h
+++ b/src/wallet/wallet.h
@@ -7,6 +7,7 @@
 #define BITCOIN_WALLET_WALLET_H
 
 #include <amount.h>
+#include <outputtype.h>
 #include <policy/feerate.h>
 #include <streams.h>
 #include <tinyformat.h>
@@ -93,20 +94,6 @@ enum WalletFeature
     FEATURE_LATEST = FEATURE_PRE_SPLIT_KEYPOOL
 };
 
-enum class OutputType {
-    LEGACY,
-    P2SH_SEGWIT,
-    BECH32,
-
-    /**
-     * Special output type for change outputs only. Automatically choose type
-     * based on address type setting and the types other of non-change outputs
-     * (see -changetype option documentation and implementation in
-     * CWallet::TransactionChangeType for details).
-     */
-    CHANGE_AUTO,
-};
-
 //! Default for -addresstype
 constexpr OutputType DEFAULT_ADDRESS_TYPE{OutputType::P2SH_SEGWIT};
 
@@ -1196,12 +1183,6 @@ public:
      */
     void LearnAllRelatedScripts(const CPubKey& key);
 
-    /**
-     * Get a destination of the requested type (if possible) to the specified script.
-     * This function will automatically add the necessary scripts to the wallet.
-     */
-    CTxDestination AddAndGetDestinationForScript(const CScript& script, OutputType);
-
     /** Whether a given output is spendable by this wallet */
     bool OutputEligibleForSpending(const COutput& output, const CoinEligibilityFilter& eligibility_filter) const;
 };
@@ -1268,18 +1249,6 @@ public:
     }
 };
 
-bool ParseOutputType(const std::string& str, OutputType& output_type);
-const std::string& FormatOutputType(OutputType type);
-
-/**
- * Get a destination of the requested type (if possible) to the specified key.
- * The caller must make sure LearnRelatedScripts has been called beforehand.
- */
-CTxDestination GetDestinationForKey(const CPubKey& key, OutputType);
-
-/** Get all destinations (potentially) supported by the wallet for the given key. */
-std::vector<CTxDestination> GetAllDestinationsForKey(const CPubKey& key);
-
 /** RAII object to check and reserve a wallet rescan */
 class WalletRescanReserver
 {
diff --git a/test/functional/rpc_createmultisig.py b/test/functional/rpc_createmultisig.py
new file mode 100755
index 000000000..97e614c88
--- /dev/null
+++ b/test/functional/rpc_createmultisig.py
@@ -0,0 +1,98 @@
+#!/usr/bin/env python3
+# Copyright (c) 2015-2017 The Bitcoin Core developers
+# Distributed under the MIT software license, see the accompanying
+# file COPYING or http://www.opensource.org/licenses/mit-license.php.
+"""Test transaction signing using the signrawtransaction* RPCs."""
+
+from test_framework.test_framework import BitcoinTestFramework
+import decimal
+
+class RpcCreateMultiSigTest(BitcoinTestFramework):
+    def set_test_params(self):
+        self.setup_clean_chain = True
+        self.num_nodes = 3
+
+    def get_keys(self):
+        node0,node1,node2 = self.nodes
+        self.add = [node1.getnewaddress() for _ in range(self.nkeys)]
+        self.pub = [node1.getaddressinfo(a)["pubkey"] for a in self.add]
+        self.priv = [node1.dumpprivkey(a) for a in self.add]
+        self.final = node2.getnewaddress()
+
+    def run_test(self):
+        node0,node1,node2 = self.nodes
+
+        # 50 BTC each, rest will be 25 BTC each
+        node0.generate(149)
+        self.sync_all()
+
+        self.moved = 0
+        for self.nkeys in [3,5]:
+            for self.nsigs in [2,3]:
+                for self.output_type in ["bech32", "p2sh-segwit", "legacy"]:
+                    self.get_keys()
+                    self.do_multisig()
+
+        self.checkbalances()
+
+    def checkbalances(self):
+        node0,node1,node2 = self.nodes
+        node0.generate(100)
+        self.sync_all()
+
+        bal0 = node0.getbalance()
+        bal1 = node1.getbalance()
+        bal2 = node2.getbalance()
+
+        height = node0.getblockchaininfo()["blocks"]
+        assert 150 < height < 350
+        total = 149*50 + (height-149-100)*25
+        assert bal1 == 0
+        assert bal2 == self.moved
+        assert bal0+bal1+bal2 == total
+
+    def do_multisig(self):
+        node0,node1,node2 = self.nodes
+
+        msig = node2.createmultisig(self.nsigs, self.pub, self.output_type)
+        madd = msig["address"]
+        mredeem = msig["redeemScript"]
+        if self.output_type == 'bech32':
+            assert madd[0:4] == "bcrt"  # actually a bech32 address
+
+        # compare against addmultisigaddress
+        msigw = node1.addmultisigaddress(self.nsigs, self.pub, None, self.output_type)
+        maddw = msigw["address"]
+        mredeemw = msigw["redeemScript"]
+        # addmultisigiaddress and createmultisig work the same
+        assert maddw == madd
+        assert mredeemw == mredeem
+
+        txid = node0.sendtoaddress(madd, 40)
+
+        tx = node0.getrawtransaction(txid, True)
+        vout = [v["n"] for v in tx["vout"] if madd in v["scriptPubKey"].get("addresses",[])]
+        assert len(vout) == 1
+        vout = vout[0]
+        scriptPubKey = tx["vout"][vout]["scriptPubKey"]["hex"]
+        value = tx["vout"][vout]["value"]
+        prevtxs = [{"txid": txid, "vout": vout, "scriptPubKey": scriptPubKey, "redeemScript": mredeem, "amount": value}]
+
+        node0.generate(1)
+
+        outval = value - decimal.Decimal("0.00001000")
+        rawtx = node2.createrawtransaction([{"txid": txid, "vout": vout}], [{self.final: outval}])
+
+        rawtx2 = node2.signrawtransactionwithkey(rawtx, self.priv[0:self.nsigs-1], prevtxs)
+        rawtx3 = node2.signrawtransactionwithkey(rawtx2["hex"], [self.priv[-1]], prevtxs)
+
+        self.moved += outval
+        tx = node0.sendrawtransaction(rawtx3["hex"], True)
+        blk = node0.generate(1)[0]
+        assert tx in node0.getblock(blk)["tx"]
+
+        txinfo = node0.getrawtransaction(tx, True, blk)
+        self.log.info("n/m=%d/%d %s size=%d vsize=%d weight=%d" % (self.nsigs, self.nkeys, self.output_type, txinfo["size"], txinfo["vsize"], txinfo["weight"]))
+
+if __name__ == '__main__':
+    RpcCreateMultiSigTest().main()
diff --git a/test/functional/test_runner.py b/test/functional/test_runner.py
index c3a546829..49833e5dd 100755
--- a/test/functional/test_runner.py
+++ b/test/functional/test_runner.py
@@ -113,6 +113,7 @@ BASE_SCRIPTS = [
     'mining_prioritisetransaction.py',
     'p2p_invalid_block.py',
     'p2p_invalid_tx.py',
+    'rpc_createmultisig.py',
     'feature_versionbits_warning.py',
     'rpc_preciousblock.py',
     'wallet_importprunedfunds.py',