diff --git a/qa/rpc-tests/pegging.py b/qa/rpc-tests/pegging.py
index c5e8af32fc..5f2c044d3f 100755
--- a/qa/rpc-tests/pegging.py
+++ b/qa/rpc-tests/pegging.py
@@ -50,28 +50,44 @@ sidechain_datadir = get_temp_dir('sidechain')
 sidechain_pass = get_pseudorandom_str()
 sidechain2_datadir = get_temp_dir('sidechain2')
 sidechain2_pass = get_pseudorandom_str()
+bitcoin2_datadir = get_temp_dir('bitcoin2')
+bitcoin2_rpccookiefile = bitcoin2_datadir + '/regtest/.cookie'
 
 bitcoin_port = 8000 + os.getpid()%999
 sidechain_port = bitcoin_port + 1
 sidechain2_port = bitcoin_port + 2
 sidechain1_p2p_port = bitcoin_port + 3
 sidechain2_p2p_port = bitcoin_port + 4
+bitcoin2_port = bitcoin_port + 5
+bitcoin2_p2p_port = bitcoin_port + 6
+bitcoin_p2p_port = bitcoin_port + 7
 
 os.makedirs(bitcoin_datadir)
 os.makedirs(sidechain_datadir)
 os.makedirs(sidechain2_datadir)
+os.makedirs(bitcoin2_datadir)
 
-with open(os.path.join(bitcoin_datadir, "bitcoin.conf"), 'w') as f:
+def write_bitcoin_conf(datadir, rpcport, rpcpass=None, p2p_port=None, connect_port=None):
+    with open(os.path.join(datadir, "bitcoin.conf"), 'w') as f:
         f.write("regtest=1\n")
-        f.write("rpcuser=bitcoinrpc\n")
-        f.write("rpcpassword="+bitcoin_pass+"\n")
-        f.write("rpcport="+str(bitcoin_port)+"\n")
+        if p2p_port:
+            f.write("port="+str(p2p_port)+"\n")
+        if rpcpass:
+            f.write("rpcuser=bitcoinrpc\n")
+            f.write("rpcpassword="+rpcpass+"\n")
+        f.write("rpcport="+str(rpcport)+"\n")
         f.write("discover=0\n")
-        f.write("listen=0\n")
         f.write("testnet=0\n")
         f.write("txindex=1\n")
         f.write("daemon=1\n")
-        f.write("listen=0\n")
+        if connect_port:
+            f.write("connect=localhost:"+str(connect_port)+"\n")
+            f.write("listen=1\n")
+        else:
+            f.write("listen=0\n")
+
+write_bitcoin_conf(bitcoin_datadir, bitcoin_port, bitcoin_pass, p2p_port=bitcoin_p2p_port, connect_port=bitcoin2_p2p_port)
+write_bitcoin_conf(bitcoin2_datadir, bitcoin2_port, rpcpass=None, p2p_port=bitcoin2_p2p_port, connect_port=bitcoin_p2p_port)
 
 with open(os.path.join(sidechain_datadir, "elements.conf"), 'w') as f:
         f.write("regtest=1\n")
@@ -104,9 +120,8 @@ with open(os.path.join(sidechain2_datadir, "elements.conf"), 'w') as f:
         f.write("fedpegscript="+fedpeg_pubkey+"\n")
         f.write("daemon=1\n")
         f.write("mainchainrpchost=127.0.0.1\n")
-        f.write("mainchainrpcport="+str(bitcoin_port)+"\n")
-        f.write("mainchainrpcuser=bitcoinrpc\n")
-        f.write("mainchainrpcpassword="+bitcoin_pass+"\n")
+        f.write("mainchainrpcport="+str(bitcoin2_port)+"\n")
+        f.write("mainchainrpccookiefile=%s\n" % bitcoin2_rpccookiefile)
         f.write("validatepegin=1\n")
         f.write("validatepegout=0\n")
         f.write("port="+str(sidechain2_p2p_port)+"\n")
@@ -120,10 +135,13 @@ try:
     sidechain_args = " -peginconfirmationdepth=10 "
 
     # Start daemons
-    print("Starting daemons at "+bitcoin_datadir+", "+sidechain_datadir+" and "+sidechain2_datadir)
+    print("Starting daemons at "+bitcoin_datadir+", "+bitcoin2_datadir+", "+sidechain_datadir+" and "+sidechain2_datadir)
     bitcoindstart = bitcoin_bin_path+"/bitcoind -datadir="+bitcoin_datadir
     subprocess.Popen(bitcoindstart.split(), stdout=subprocess.PIPE)
 
+    bitcoind2start = bitcoin_bin_path+"/bitcoind -datadir="+bitcoin2_datadir
+    subprocess.Popen(bitcoind2start.split(), stdout=subprocess.PIPE)
+
     sidechainstart = sidechain_bin_path+"/elementsd -datadir="+sidechain_datadir + sidechain_args
     subprocess.Popen(sidechainstart.split(), stdout=subprocess.PIPE)
 
@@ -133,7 +151,11 @@ try:
     print("Daemons started")
     time.sleep(3)
 
+    with open(bitcoin2_rpccookiefile, 'r') as f:
+        bitcoin2_rpccookie = f.readline()
+
     bitcoin = AuthServiceProxy("http://bitcoinrpc:"+bitcoin_pass+"@127.0.0.1:"+str(bitcoin_port))
+    bitcoin2 = AuthServiceProxy("http://"+ bitcoin2_rpccookie +"@127.0.0.1:"+str(bitcoin2_port))
     sidechain = AuthServiceProxy("http://sidechainrpc:"+sidechain_pass+"@127.0.0.1:"+str(sidechain_port))
     sidechain2 = AuthServiceProxy("http://sidechainrpc2:"+sidechain2_pass+"@127.0.0.1:"+str(sidechain2_port))
     print("Daemons started, making blocks to get funds")
@@ -173,6 +195,7 @@ try:
     pegtxid1 = sidechain.claimpegin(raw, proof)
 
     # Will invalidate the block that confirms this transaction later
+    sync_all(bitcoin, bitcoin2)
     blockhash = sync_all(sidechain, sidechain2)
     sidechain.generate(5)
 
@@ -215,6 +238,7 @@ try:
         raw = bitcoin.getrawtransaction(txid)
         pegtxs += [sidechain.claimpegin(raw, proof)]
 
+    sync_all(bitcoin, bitcoin2)
     sync_all(sidechain, sidechain2)
 
     sidechain2.generate(1)
@@ -234,11 +258,13 @@ except Exception as e:
 
 print("Stopping daemons and cleaning up")
 bitcoin.stop()
+bitcoin2.stop()
 sidechain.stop()
 sidechain2.stop()
 
 time.sleep(5)
 
+shutil.rmtree(bitcoin2_datadir)
 shutil.rmtree(sidechain2_datadir)
 shutil.rmtree(sidechain_datadir)
 shutil.rmtree(bitcoin_datadir)