diff --git a/src/core/ddsi/include/dds/ddsi/ddsi_security_omg.h b/src/core/ddsi/include/dds/ddsi/ddsi_security_omg.h
index 7eaaee1..dc63d5a 100644
--- a/src/core/ddsi/include/dds/ddsi/ddsi_security_omg.h
+++ b/src/core/ddsi/include/dds/ddsi/ddsi_security_omg.h
@@ -64,6 +64,7 @@ struct security_entity_match {
   ddsrt_avl_node_t avlnode;
   struct guid_pair guids;
   bool matched;
+  bool tokens_sent;
   int64_t crypto_handle;
   DDS_Security_ParticipantCryptoTokenSeq *tokens;
 };
@@ -85,6 +86,7 @@ struct proxypp_pp_match {
   DDS_Security_ParticipantCryptoHandle pp_crypto_handle;
   DDS_Security_PermissionsHandle permissions_handle;
   DDS_Security_SharedSecretHandle shared_secret;
+  bool authenticated;
 };
 
 struct participant_sec_attributes {
@@ -558,6 +560,20 @@ bool q_omg_security_remote_participant_is_initialized(struct proxy_participant *
  */
 bool q_omg_security_register_remote_participant(struct participant *pp, struct proxy_participant *proxypp, int64_t shared_secret);
 
+/**
+ * @brief Sets the matching participant and proxy participant as authorized.
+ *
+ * When the authentication handshake has finished successfully and the
+ * volatile secure readers and writers are matched then with this function
+ * the matching local and remote participant are set to authenticated which
+ * allows the crypto tokens to be exchanged and the corresponding entities
+ * be matched.
+ *
+ * @param[in] pp                 The participant.
+ * @param[in] proxypp            The proxy participant.
+ */
+void q_omg_security_set_remote_participant_authenticated(struct participant *pp, struct proxy_participant *proxypp);
+
 /**
  * @brief Removes a registered proxy participant from administation of the authentication,
  *        access control and crypto plugins.
diff --git a/src/core/ddsi/src/ddsi_security_omg.c b/src/core/ddsi/src/ddsi_security_omg.c
index 40768d9..70b2b93 100644
--- a/src/core/ddsi/src/ddsi_security_omg.c
+++ b/src/core/ddsi/src/ddsi_security_omg.c
@@ -378,6 +378,7 @@ static struct proxypp_pp_match * proxypp_pp_match_new(struct participant *pp, DD
   pm->pp_crypto_handle = pp->sec_attr->crypto_handle;
   pm->permissions_handle = permissions_hdl;
   pm->shared_secret = shared_secret;
+  pm->authenticated = false;
 
   return pm;
 }
@@ -1753,6 +1754,37 @@ register_failed:
   return ret;
 }
 
+void q_omg_security_set_remote_participant_authenticated(struct participant *pp, struct proxy_participant *proxypp)
+{
+  struct proxypp_pp_match *pm;
+
+  ddsrt_mutex_lock(&proxypp->sec_attr->lock);
+  pm = ddsrt_avl_lookup(&proxypp_pp_treedef, &proxypp->sec_attr->participants, &pp->sec_attr->crypto_handle);
+  if (pm)
+    pm->authenticated = true;
+  ddsrt_mutex_unlock(&proxypp->sec_attr->lock);
+}
+
+static bool is_volatile_secure_endpoint(ddsi_entityid_t entityid)
+{
+  return ((entityid.u == NN_ENTITYID_P2P_BUILTIN_PARTICIPANT_VOLATILE_SECURE_WRITER) || (entityid.u == NN_ENTITYID_P2P_BUILTIN_PARTICIPANT_VOLATILE_SECURE_READER));
+}
+
+static struct proxypp_pp_match * get_pp_proxypp_match_if_authenticated(struct participant *pp, struct proxy_participant *proxypp, ddsi_entityid_t entityid)
+{
+  struct proxypp_pp_match *pm;
+
+  ddsrt_mutex_lock(&proxypp->sec_attr->lock);
+  pm = ddsrt_avl_lookup(&proxypp_pp_treedef, &proxypp->sec_attr->participants, &pp->sec_attr->crypto_handle);
+  if (pm)
+  {
+    if (!pm->authenticated && !is_volatile_secure_endpoint(entityid))
+      pm = NULL;
+  }
+  ddsrt_mutex_unlock(&proxypp->sec_attr->lock);
+  return pm;
+}
+
 void q_omg_security_deregister_remote_participant(struct proxy_participant *proxypp)
 {
   struct ddsi_domaingv *gv = proxypp->e.gv;
@@ -2028,11 +2060,9 @@ static bool q_omg_security_register_remote_writer_match(struct proxy_writer *pwr
   struct security_entity_match *match;
   bool send_tokens = false;
 
-  ddsrt_mutex_lock(&proxypp->sec_attr->lock);
-  pm = ddsrt_avl_lookup(&proxypp_pp_treedef, &proxypp->sec_attr->participants, &pp->sec_attr->crypto_handle);
-  ddsrt_mutex_unlock(&proxypp->sec_attr->lock);
+  *crypto_handle = 0;
 
-  if (!pm)
+  if ((pm = get_pp_proxypp_match_if_authenticated(pp, proxypp, pwr->e.guid.entityid)) == NULL)
     return false;
 
   /* TODO: the security_entity_match should be removed after the the received tokens are stored in the plugin.
@@ -2380,10 +2410,7 @@ static bool q_omg_security_register_remote_reader_match(struct proxy_reader *prd
 
   *crypto_handle = 0;
 
-  ddsrt_mutex_lock(&proxypp->sec_attr->lock);
-  pm = ddsrt_avl_lookup(&proxypp_pp_treedef, &proxypp->sec_attr->participants, &pp->sec_attr->crypto_handle);
-  ddsrt_mutex_unlock(&proxypp->sec_attr->lock);
-  if (!pm)
+  if ((pm = get_pp_proxypp_match_if_authenticated(pp, proxypp, prd->e.guid.entityid)) == NULL)
     return false;
 
   /* TODO: the security_entity_match should be removed after the the received tokens are stored in the plugin.
diff --git a/src/core/ddsi/src/q_entity.c b/src/core/ddsi/src/q_entity.c
index 242cb28..23a64a9 100644
--- a/src/core/ddsi/src/q_entity.c
+++ b/src/core/ddsi/src/q_entity.c
@@ -3620,7 +3620,7 @@ static void new_writer_guid_common_init (struct writer *wr, const struct ddsi_se
     assert ((wr->xqos->durability.kind == DDS_DURABILITY_TRANSIENT_LOCAL) ||
             (wr->e.guid.entityid.u == NN_ENTITYID_P2P_BUILTIN_PARTICIPANT_STATELESS_MESSAGE_WRITER));
   }
-  wr->handle_as_transient_local = (wr->xqos->durability.kind == DDS_DURABILITY_TRANSIENT_LOCAL);
+  wr->handle_as_transient_local = (wr->xqos->durability.kind == DDS_DURABILITY_TRANSIENT_LOCAL || wr->e.guid.entityid.u == NN_ENTITYID_P2P_BUILTIN_PARTICIPANT_VOLATILE_SECURE_WRITER);
   wr->include_keyhash =
     wr->e.gv->config.generate_keyhash &&
     ((wr->e.guid.entityid.u & NN_ENTITYID_KIND_MASK) == NN_ENTITYID_KIND_WRITER_WITH_KEY);
@@ -4773,6 +4773,7 @@ void handshake_end_cb(struct ddsi_handshake *handshake, struct participant *pp,
     DDS_CLOG (DDS_LC_DISCOVERY, &gv->logconfig, "handshake (lguid="PGUIDFMT" rguid="PGUIDFMT") processed\n", PGUID (pp->e.guid), PGUID (proxypp->e.guid));
     if (q_omg_security_register_remote_participant(pp, proxypp, shared_secret)) {
       match_volatile_secure_endpoints(pp, proxypp);
+      q_omg_security_set_remote_participant_authenticated(pp, proxypp);
     }
     break;
 
diff --git a/src/security/builtin_plugins/cryptographic/src/crypto_key_factory.c b/src/security/builtin_plugins/cryptographic/src/crypto_key_factory.c
index 02ba273..ab75a63 100644
--- a/src/security/builtin_plugins/cryptographic/src/crypto_key_factory.c
+++ b/src/security/builtin_plugins/cryptographic/src/crypto_key_factory.c
@@ -1998,3 +1998,27 @@ invalid_handle:
   CRYPTO_OBJECT_RELEASE(obj);
   return result;
 }
+
+master_key_material *
+crypto_factory_get_master_key_material_for_test(
+    const dds_security_crypto_key_factory *factory,
+    DDS_Security_ParticipantCryptoHandle local_id,
+    DDS_Security_ParticipantCryptoHandle remote_id)
+{
+  dds_security_crypto_key_factory_impl *impl = (dds_security_crypto_key_factory_impl *)factory;
+  remote_participant_crypto *rmt_cr = (remote_participant_crypto *)crypto_object_table_find(impl->crypto_objects, remote_id);
+  participant_key_material *keymat;
+  master_key_material *master_keymat = NULL;
+
+  if (rmt_cr)
+  {
+    keymat = crypto_remote_participant_lookup_keymat(rmt_cr, local_id);
+    if (keymat)
+    {
+      master_keymat = keymat->local_P2P_key_material;
+      CRYPTO_OBJECT_RELEASE(keymat);
+    }
+  }
+
+  return master_keymat;
+}
diff --git a/src/security/builtin_plugins/cryptographic/src/crypto_key_factory.h b/src/security/builtin_plugins/cryptographic/src/crypto_key_factory.h
index 3e49766..a908e2c 100644
--- a/src/security/builtin_plugins/cryptographic/src/crypto_key_factory.h
+++ b/src/security/builtin_plugins/cryptographic/src/crypto_key_factory.h
@@ -14,6 +14,7 @@
 
 #include "dds/security/dds_security_api.h"
 #include "crypto_objects.h"
+#include "dds/security/export.h"
 
 /**
  * @brief Allocation function for implementer structure (with internal variables) transparently.
@@ -158,4 +159,10 @@ crypto_factory_get_specific_keymat(
     uint32_t *index,
     master_key_material **key_mat);
 
+SECURITY_EXPORT master_key_material *
+crypto_factory_get_master_key_material_for_test(
+    const dds_security_crypto_key_factory *factory,
+    DDS_Security_ParticipantCryptoHandle local_id,
+    DDS_Security_ParticipantCryptoHandle remote_id);
+
 #endif /* CRYPTO_KEY_FACTORY_H */
diff --git a/src/security/builtin_plugins/tests/encode_rtps_message/src/encode_rtps_message_utests.c b/src/security/builtin_plugins/tests/encode_rtps_message/src/encode_rtps_message_utests.c
index cc6cd22..ea77f41 100644
--- a/src/security/builtin_plugins/tests/encode_rtps_message/src/encode_rtps_message_utests.c
+++ b/src/security/builtin_plugins/tests/encode_rtps_message/src/encode_rtps_message_utests.c
@@ -28,6 +28,7 @@
 #include "CUnit/Test.h"
 #include "common/src/loader.h"
 #include "common/src/crypto_helper.h"
+#include "crypto_key_factory.h"
 #include "crypto_objects.h"
 #include "crypto_utils.h"
 
@@ -571,18 +572,7 @@ static session_key_material * get_local_participant_session(DDS_Security_Partici
 
 static master_key_material * get_remote_participant_key_material(DDS_Security_ParticipantCryptoHandle participant_crypto)
 {
-  participant_key_material *key_material;
-  master_key_material * master_keymat = NULL;
-  remote_participant_crypto *participant_crypto_impl = (remote_participant_crypto *)participant_crypto;
-
-  key_material = crypto_remote_participant_lookup_keymat(participant_crypto_impl, local_particpant_crypto);
-  if (key_material)
-  {
-    master_keymat = key_material->local_P2P_key_material;
-    CRYPTO_OBJECT_RELEASE(key_material);
-  }
-
-  return master_keymat;
+  return crypto_factory_get_master_key_material_for_test(crypto->crypto_key_factory, local_particpant_crypto, participant_crypto);
 }
 
 static void set_protection_kind(DDS_Security_ParticipantCryptoHandle participant_crypto, DDS_Security_ProtectionKind protection_kind)