diff --git a/loopd/daemon.go b/loopd/daemon.go
index 12e2c2192..f0882892d 100644
--- a/loopd/daemon.go
+++ b/loopd/daemon.go
@@ -21,6 +21,7 @@ import (
 	"github.com/lightninglabs/loop/loopd/perms"
 	"github.com/lightninglabs/loop/loopdb"
 	loop_looprpc "github.com/lightninglabs/loop/looprpc"
+	"github.com/lightninglabs/loop/notifications"
 	loop_swaprpc "github.com/lightninglabs/loop/swapserverrpc"
 	"github.com/lightninglabs/loop/sweepbatcher"
 	"github.com/lightningnetwork/lnd/clock"
@@ -498,21 +499,48 @@ func (d *Daemon) initialize(withMacaroonService bool) error {
 		}
 	}
 
+	// Start the notification manager.
+	notificationCfg := &notifications.Config{
+		Client: loop_swaprpc.NewSwapServerClient(swapClient.Conn),
+	}
+	notificationManager := notifications.NewManager(notificationCfg)
+
+	d.wg.Add(1)
+	notificationInitChan := make(chan struct{})
+	go func() {
+		defer d.wg.Done()
+		err = notificationManager.Run(d.mainCtx, notificationInitChan)
+		if err != nil {
+			d.internalErrChan <- err
+		}
+	}()
+
+	select {
+	case <-notificationInitChan:
+		break
+	case <-time.After(15 * time.Second):
+		return fmt.Errorf("notification manager not ready")
+	case <-d.mainCtx.Done():
+		return fmt.Errorf("notification manager not ready: %v", d.mainCtx.Err())
+	}
+
 	var (
 		reservationManager *reservation.Manager
 		instantOutManager  *instantout.Manager
 	)
+
 	// Create the reservation and instantout managers.
 	if d.cfg.EnableExperimental {
 		reservationStore := reservation.NewSQLStore(
 			loopdb.NewTypedStore[reservation.Querier](baseDb),
 		)
 		reservationConfig := &reservation.Config{
-			Store:             reservationStore,
-			Wallet:            d.lnd.WalletKit,
-			ChainNotifier:     d.lnd.ChainNotifier,
-			ReservationClient: reservationClient,
-			FetchL402:         swapClient.Server.FetchL402,
+			Store:               reservationStore,
+			Wallet:              d.lnd.WalletKit,
+			ChainNotifier:       d.lnd.ChainNotifier,
+			ReservationClient:   reservationClient,
+			FetchL402:           swapClient.Server.FetchL402,
+			NotificationManager: notificationManager,
 		}
 
 		reservationManager = reservation.NewManager(
diff --git a/loopd/log.go b/loopd/log.go
index 970bd806b..a4f433f01 100644
--- a/loopd/log.go
+++ b/loopd/log.go
@@ -10,6 +10,7 @@ import (
 	"github.com/lightninglabs/loop/instantout/reservation"
 	"github.com/lightninglabs/loop/liquidity"
 	"github.com/lightninglabs/loop/loopdb"
+	"github.com/lightninglabs/loop/notifications"
 	"github.com/lightninglabs/loop/sweepbatcher"
 	"github.com/lightningnetwork/lnd"
 	"github.com/lightningnetwork/lnd/build"
@@ -48,6 +49,9 @@ func SetupLoggers(root *build.RotatingLogWriter, intercept signal.Interceptor) {
 	lnd.AddSubLogger(
 		root, instantout.Subsystem, intercept, instantout.UseLogger,
 	)
+	lnd.AddSubLogger(
+		root, notifications.Subsystem, intercept, notifications.UseLogger,
+	)
 }
 
 // genSubLogger creates a logger for a subsystem. We provide an instance of