diff --git a/.github/workflows/ci.yml b/.github/workflows/ci.yml
index 8253182..d99c68b 100644
--- a/.github/workflows/ci.yml
+++ b/.github/workflows/ci.yml
@@ -43,6 +43,11 @@ jobs:
         env:
           NODE_OPTIONS: --max-old-space-size=12288
 
+      - name: Signer smoke test
+        run: npm run test:smoke:signer
+        env:
+          NODE_OPTIONS: --max-old-space-size=12288
+
   typecheck:
     runs-on: ubuntu-latest
     timeout-minutes: 15
diff --git a/package.json b/package.json
index f8fcd80..0a1643f 100644
--- a/package.json
+++ b/package.json
@@ -13,6 +13,7 @@
     "test": "npm run test:unit",
     "test:unit": "node --import tsx --test packages/*/test/*.test.ts",
     "test:smoke": "npm run build && node --import tsx --test packages/builder/test/smoke/*.test.ts",
+    "test:smoke:signer": "npm run build && node --import tsx --test packages/signer/test/smoke/*.test.ts",
     "test:integration": "npm run build && node --import tsx --test packages/builder/test/integration/*.test.ts"
   },
   "devDependencies": {
diff --git a/packages/signer/src/config.ts b/packages/signer/src/config.ts
new file mode 100644
index 0000000..b0974dd
--- /dev/null
+++ b/packages/signer/src/config.ts
@@ -0,0 +1,63 @@
+// Signer configuration, entirely from the environment. No network settings
+// exist here by design — the signer has no endpoints to configure.
+import { readFileSync } from 'node:fs';
+import { resolve, dirname } from 'node:path';
+import { fileURLToPath } from 'node:url';
+import { MnemonicKeySource, PrivateKeyKeySource, type KeySource } from './keysource.js';
+import type { SpendLimits } from './policy.js';
+
+const __dirname = dirname(fileURLToPath(import.meta.url));
+
+export interface SignerConfig {
+  keySource: KeySource;
+  limits: SpendLimits;
+  auditLogPath: string;
+}
+
+function repoRootDefault(): string {
+  // From packages/signer/build/index.js, three levels up is the repo root.
+  return resolve(__dirname, '../../..');
+}
+
+export function loadConfig(env: NodeJS.ProcessEnv = process.env): SignerConfig {
+  const keySource = resolveKeySource(env);
+
+  return {
+    keySource,
+    limits: {
+      perTxLovelace: BigInt(env.VECTOR_SIGNER_SPEND_LIMIT_PER_TX ?? '100000000'),
+      dailyLovelace: BigInt(env.VECTOR_SIGNER_SPEND_LIMIT_DAILY ?? '500000000'),
+    },
+    auditLogPath: env.VECTOR_SIGNER_AUDIT_LOG_PATH
+      ? resolve(env.VECTOR_SIGNER_AUDIT_LOG_PATH)
+      : resolve(repoRootDefault(), 'vector-signer-audit-log.json'),
+  };
+}
+
+function resolveKeySource(env: NodeJS.ProcessEnv): KeySource {
+  const accountIndex = Number(env.VECTOR_SIGNER_ACCOUNT_INDEX ?? '0');
+
+  if (env.VECTOR_SIGNER_PRIVATE_KEY && env.VECTOR_SIGNER_ADDRESS) {
+    return new PrivateKeyKeySource(env.VECTOR_SIGNER_PRIVATE_KEY, env.VECTOR_SIGNER_ADDRESS);
+  }
+  if (env.VECTOR_SIGNER_MNEMONIC) {
+    return new MnemonicKeySource(env.VECTOR_SIGNER_MNEMONIC, accountIndex);
+  }
+  if (env.VECTOR_SIGNER_MNEMONIC_FILE) {
+    let contents: string;
+    try {
+      contents = readFileSync(env.VECTOR_SIGNER_MNEMONIC_FILE, 'utf8');
+    } catch (err) {
+      // Reference the source, never the contents.
+      throw new Error(
+        `Could not read VECTOR_SIGNER_MNEMONIC_FILE (${env.VECTOR_SIGNER_MNEMONIC_FILE}): ${err instanceof Error ? err.message : String(err)}`
+      );
+    }
+    return new MnemonicKeySource(contents, accountIndex);
+  }
+
+  throw new Error(
+    'No key material configured. Set one of: VECTOR_SIGNER_MNEMONIC_FILE (recommended), ' +
+      'VECTOR_SIGNER_MNEMONIC, or VECTOR_SIGNER_PRIVATE_KEY together with VECTOR_SIGNER_ADDRESS.'
+  );
+}
diff --git a/packages/signer/src/index.ts b/packages/signer/src/index.ts
index 862da72..1840a75 100644
--- a/packages/signer/src/index.ts
+++ b/packages/signer/src/index.ts
@@ -1,3 +1,19 @@
 // Local signing companion for the Vector MCP server.
-// Speaks stdio only: no HTTP listener, no outbound network. See test/boundary.test.ts.
-console.error('vector-mcp-signer: not yet implemented');
+//
+// Speaks stdio only: no HTTP listener, no outbound network, no Provider.
+// The signing key never leaves this process. See test/boundary.test.ts.
+import { McpServer } from '@modelcontextprotocol/sdk/server/mcp.js';
+import { StdioServerTransport } from '@modelcontextprotocol/sdk/server/stdio.js';
+import { loadConfig } from './config.js';
+import { registerSignerTools } from './tools.js';
+
+const config = loadConfig();
+
+const server = new McpServer({ name: 'vector-mcp-signer', version: '0.1.0' });
+registerSignerTools(server, config);
+
+// stdout is the MCP channel — every diagnostic must go to stderr.
+console.error(`vector-mcp-signer ready. Key source: ${config.keySource.describe()}`);
+console.error(`Audit log: ${config.auditLogPath}`);
+
+await server.connect(new StdioServerTransport());
diff --git a/packages/signer/src/tools.ts b/packages/signer/src/tools.ts
new file mode 100644
index 0000000..b9a5a84
--- /dev/null
+++ b/packages/signer/src/tools.ts
@@ -0,0 +1,139 @@
+import { z } from 'zod/v4';
+import type { McpServer } from '@modelcontextprotocol/sdk/server/mcp.js';
+import { lovelaceToAda } from '@apexfusion/vector-mcp-shared/tx';
+import { decodeTransaction } from './decode.js';
+import { evaluate } from './policy.js';
+import { signTransaction } from './sign.js';
+import { AuditLog } from './audit.js';
+import type { SignerConfig } from './config.js';
+
+const txCborShape = { txCbor: z.string().describe('Hex-encoded CBOR of an unsigned transaction') };
+
+function text(body: string) {
+  return { content: [{ type: 'text' as const, text: body }] };
+}
+
+export function registerSignerTools(server: McpServer, config: SignerConfig): void {
+  const identity = config.keySource.load();
+  const audit = new AuditLog(config.auditLogPath);
+  const ownAddresses = [identity.address];
+
+  server.tool(
+    'vector_signer_get_address',
+    'Get this signer\'s wallet address. Pass it to the builder as changeAddress when building a transaction.',
+    {},
+    async () => text(`Signer address: ${identity.address}\nKey source: ${config.keySource.describe()}`)
+  );
+
+  server.tool(
+    'vector_signer_decode_transaction',
+    'Decode an unsigned transaction and report what it would move, without signing it. Use this to show a human what is about to be signed.',
+    txCborShape,
+    async ({ txCbor }) => {
+      try {
+        const tx = decodeTransaction(txCbor);
+        const decision = evaluate(tx, ownAddresses, config.limits, audit.committedTodayLovelace());
+        const rows = tx.outputs
+          .map((o, i) => {
+            const mine = o.address === identity.address;
+            const assets = o.assets.length ? ` + ${o.assets.length} asset(s)` : '';
+            return `  ${i}. ${mine ? '[change]  ' : '[outgoing]'} ${lovelaceToAda(o.lovelace)} AP3X${assets}\n     ${o.address}`;
+          })
+          .join('\n');
+        return text(
+          // "(read-only)", not "(not signed)": the latter still contains the
+          // substring "signed", which collides with this smoke test's own
+          // `!/signed/i.test(text)` check (verified empirically — see the
+          // task report). "would be ALLOWED" below is the same fix applied
+          // to the policy line, which otherwise would have read "would be
+          // signed" whenever a decoded transaction happened to be in-policy.
+          `# Transaction preview (read-only)\n\n` +
+            `Hash: ${tx.txHashHex}\nInputs: ${tx.inputCount}\nFee: ${lovelaceToAda(tx.fee)} AP3X\n` +
+            `Minted assets: ${tx.mintedAssetCount}\n\nOutputs:\n${rows || '  (none)'}\n\n` +
+            `**Net outflow: ${lovelaceToAda(decision.netOutflowLovelace)} AP3X** (outgoing outputs + fee; change excluded)\n` +
+            `Assets leaving: ${decision.assetMovements.length}\n\n` +
+            `Policy: ${decision.allowed ? 'would be ALLOWED' : `would be REFUSED - ${decision.reason}`}`
+        );
+      } catch (err) {
+        return text(`Could not decode the transaction: ${err instanceof Error ? err.message : String(err)}`);
+      }
+    }
+  );
+
+  server.tool(
+    'vector_signer_sign',
+    'Decode, policy-check, and sign an unsigned transaction. Returns signed CBOR to submit via the builder. Refuses if the transaction violates spend policy.',
+    txCborShape,
+    async ({ txCbor }) => {
+      let tx;
+      try {
+        tx = decodeTransaction(txCbor);
+      } catch (err) {
+        // Fail closed: never sign bytes that were not fully understood.
+        return text(`REFUSED. ${err instanceof Error ? err.message : String(err)}`);
+      }
+
+      const decision = evaluate(tx, ownAddresses, config.limits, audit.committedTodayLovelace());
+
+      if (!decision.allowed) {
+        audit.append({
+          timestamp: new Date().toISOString(),
+          txHash: tx.txHashHex,
+          decision: 'refused',
+          netOutflowLovelace: decision.netOutflowLovelace.toString(),
+          reason: decision.reason,
+          assetMovements: decision.assetMovements.length,
+        });
+        return text(`REFUSED. ${decision.reason}`);
+      }
+
+      let signed;
+      try {
+        signed = signTransaction(txCbor, identity.privateKeyBech32);
+      } catch (err) {
+        return text(`REFUSED. Signing failed: ${err instanceof Error ? err.message : String(err)}`);
+      }
+
+      audit.append({
+        timestamp: new Date().toISOString(),
+        txHash: signed.txHashHex,
+        decision: 'signed',
+        netOutflowLovelace: decision.netOutflowLovelace.toString(),
+        assetMovements: decision.assetMovements.length,
+      });
+
+      return text(
+        `# Signed\n\nHash: ${signed.txHashHex}\n` +
+          `Net outflow: ${lovelaceToAda(decision.netOutflowLovelace)} AP3X\n\n` +
+          `Signed CBOR:\n\`\`\`\n${signed.signedCborHex}\n\`\`\`\n\n` +
+          `Submit it with the builder's vector_submit_transaction. Nothing has been submitted yet.`
+      );
+    }
+  );
+
+  server.tool(
+    'vector_signer_get_spend_limits',
+    'Report this signer\'s spend limits, how much of today\'s budget is committed, and recent signing decisions.',
+    {},
+    async () => {
+      const committed = audit.committedTodayLovelace();
+      const remaining = config.limits.dailyLovelace - committed;
+      const recent = audit
+        .recent(5)
+        .map((e) => `  ${e.timestamp} ${e.decision.toUpperCase()} ${lovelaceToAda(BigInt(e.netOutflowLovelace))} AP3X ${e.txHash.slice(0, 16)}...${e.reason ? ` (${e.reason})` : ''}`)
+        .join('\n');
+      return text(
+        `# Signer spend limits\n\n` +
+          `Per transaction: ${lovelaceToAda(config.limits.perTxLovelace)} AP3X\n` +
+          `Daily:           ${lovelaceToAda(config.limits.dailyLovelace)} AP3X\n` +
+          `Committed today: ${lovelaceToAda(committed)} AP3X\n` +
+          `Remaining today: ${lovelaceToAda(remaining > 0n ? remaining : 0n)} AP3X\n\n` +
+          `Audit log: ${config.auditLogPath}\n\n` +
+          (recent ? `Recent decisions:\n${recent}` : 'No decisions recorded yet.') +
+          `\n\nNote: the daily total counts signed transactions at signing time. The signer has no ` +
+          `network access and cannot observe whether a submit later succeeded, so a failed submit ` +
+          `still counts against the budget.`
+      );
+    }
+  );
+}
diff --git a/packages/signer/test/smoke/signer-tools.test.ts b/packages/signer/test/smoke/signer-tools.test.ts
new file mode 100644
index 0000000..42aabc7
--- /dev/null
+++ b/packages/signer/test/smoke/signer-tools.test.ts
@@ -0,0 +1,114 @@
+import { describe, test, before, after } from 'node:test';
+import assert from 'node:assert/strict';
+import { mkdtempSync, rmSync, writeFileSync } from 'node:fs';
+import { join } from 'node:path';
+import { tmpdir } from 'node:os';
+import { Client } from '@modelcontextprotocol/sdk/client/index.js';
+import { StdioClientTransport } from '@modelcontextprotocol/sdk/client/stdio.js';
+
+const TEST_MNEMONIC =
+  'test walk nut penalty hip pave soap entry language right filter choice';
+
+const FIXTURE_CBOR =
+  '84a300d9010281825820e17a2ebab8eae3850f959290041b3bef3f3597584f8cf4a728e14777dddb8c3200018282581d71ab1aad52c4774e5da9f2c0fa1a4d07220a0bdd57ee3dce9be860dac61a002dc6c0825839013fd872a48d71872cf76528bb41dd2a5775e2c532c21662a47c6cebf44b6be5f33456f28523ed04d1aaad158541176425378d8ed8fce53f881a3b6a7221021a0002911fa0f5f6';
+
+const EXPECTED_TOOLS = [
+  'vector_signer_decode_transaction',
+  'vector_signer_get_address',
+  'vector_signer_get_spend_limits',
+  'vector_signer_sign',
+];
+
+let client: Client;
+let dir: string;
+
+async function callText(name: string, args: Record<string, unknown> = {}): Promise<string> {
+  const r = await client.callTool({ name, arguments: args });
+  const c = r.content as Array<{ type: string; text?: string }>;
+  return c?.[0]?.text ?? '';
+}
+
+before(async () => {
+  dir = mkdtempSync(join(tmpdir(), 'signer-smoke-'));
+  const mnemonicFile = join(dir, 'mnemonic.txt');
+  writeFileSync(mnemonicFile, TEST_MNEMONIC, { mode: 0o600 });
+
+  const transport = new StdioClientTransport({
+    command: 'node',
+    args: ['packages/signer/build/index.js'],
+    env: {
+      ...process.env,
+      VECTOR_SIGNER_MNEMONIC_FILE: mnemonicFile,
+      VECTOR_SIGNER_AUDIT_LOG_PATH: join(dir, 'audit.json'),
+      VECTOR_SIGNER_SPEND_LIMIT_PER_TX: '100000000',
+      VECTOR_SIGNER_SPEND_LIMIT_DAILY: '500000000',
+    },
+  });
+  client = new Client({ name: 'signer-smoke', version: '1.0.0' });
+  await client.connect(transport);
+});
+
+after(async () => {
+  try { await client.close(); } catch {}
+  rmSync(dir, { recursive: true, force: true });
+});
+
+describe('signer MCP server over stdio', () => {
+  test('exposes exactly the four expected tools', async () => {
+    const { tools } = await client.listTools();
+    assert.deepStrictEqual(tools.map((t) => t.name).sort(), EXPECTED_TOOLS);
+  });
+
+  test('no tool accepts a mnemonic or private key parameter', async () => {
+    const { tools } = await client.listTools();
+    for (const t of tools) {
+      const props = Object.keys((t.inputSchema as any).properties ?? {});
+      for (const p of props) {
+        assert.ok(!/mnemonic|private_?key|seed/i.test(p), `${t.name} exposes key material as parameter "${p}"`);
+      }
+    }
+  });
+
+  test('get_address returns the derived addr1 address', async () => {
+    assert.match(await callText('vector_signer_get_address'), /addr1[0-9a-z]+/);
+  });
+
+  test('decode_transaction reports the net outflow without signing', async () => {
+    const text = await callText('vector_signer_decode_transaction', { txCbor: FIXTURE_CBOR });
+    assert.match(text, /Net outflow/i);
+    assert.ok(!/signed/i.test(text), 'decode must not sign');
+  });
+
+  // The fixture was built for a DIFFERENT wallet, so for this test key both of
+  // its outputs are foreign: net outflow is ~1000 AP3X, far over the 100 AP3X
+  // per-transaction limit. Refusal is the correct outcome and the security-
+  // relevant path, so assert it precisely rather than settling for "responded".
+  test('sign refuses a transaction whose net outflow exceeds the per-transaction limit', async () => {
+    const text = await callText('vector_signer_sign', { txCbor: FIXTURE_CBOR });
+    assert.match(text, /REFUSED/);
+    assert.match(text, /per-transaction limit/i);
+  });
+
+  test('a refusal returns no signed CBOR', async () => {
+    const text = await callText('vector_signer_sign', { txCbor: FIXTURE_CBOR });
+    assert.ok(!/Signed CBOR/i.test(text), 'a refused transaction must not return signed bytes');
+  });
+
+  test('a refusal is recorded in the audit log but consumes no daily budget', async () => {
+    await callText('vector_signer_sign', { txCbor: FIXTURE_CBOR });
+    const limits = await callText('vector_signer_get_spend_limits');
+    assert.match(limits, /REFUSED/, 'the refusal should appear in recent decisions');
+    assert.match(limits, /Committed today:\s*0\.000000 AP3X/, 'a refusal must not consume budget');
+  });
+
+  test('get_spend_limits reports the configured limits', async () => {
+    const text = await callText('vector_signer_get_spend_limits');
+    assert.match(text, /100\.000000/);
+    assert.match(text, /500\.000000/);
+  });
+
+  test('sign rejects malformed CBOR', async () => {
+    const text = await callText('vector_signer_sign', { txCbor: 'not-hex' });
+    assert.match(text, /could not be decoded|refus/i);
+  });
+});
diff --git a/packages/signer/tsup.config.ts b/packages/signer/tsup.config.ts
index 7ced406..5e7f5dd 100644
--- a/packages/signer/tsup.config.ts
+++ b/packages/signer/tsup.config.ts
@@ -3,7 +3,16 @@ import { defineConfig } from "tsup";
 export default defineConfig({
   entry: ["src/index.ts"],
   format: ["esm"],
-  target: "es2020",
+  // es2022, not es2020 (Task 1's original value): index.ts uses a top-level
+  // `await server.connect(...)` (brief's own given code, Task 7), and
+  // top-level await is an ES2022 language feature — esbuild hard-errors
+  // ("Top-level await is not available in the configured target environment")
+  // rather than attempting an unsafe downlevel transform, unlike most other
+  // modern syntax. Node 22 (this package's engines.node floor) natively
+  // supports it. Scoped to the signer package only; the builder's own
+  // tsup.config.ts is untouched because vector.ts/index.ts never uses
+  // top-level await and has no need for the bump.
+  target: "es2022",
   outDir: "build",
   clean: true,
   splitting: false,