diff --git a/chainio/README.md b/chainio/README.md
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--- /dev/null
+++ b/chainio/README.md
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+# Chainio 
+
+`chainio` is a package designed to provide blockchain data access to various
+subsystems within `lnd`. When a new block is received, it is encapsulated in a
+`Blockbeat` object and disseminated to all registered consumers. Consumers may
+receive these updates either concurrently or sequentially, based on their
+registration configuration, ensuring that each subsystem maintains a
+synchronized view of the current block state.
+
+The main components include:
+
+- `Blockbeat`: An interface that provides information about the block.
+
+- `Consumer`: An interface that specifies how subsystems handle the blockbeat.
+
+- `BlockbeatDispatcher`: The core service responsible for receiving each block
+  and distributing it to all consumers.
+
+Additionally, the `BeatConsumer` struct provides a partial implementation of
+the `Consumer` interface. This struct helps reduce code duplication, allowing
+subsystems to avoid re-implementing the `ProcessBlock` method and provides a
+commonly used `NotifyBlockProcessed` method.
+
+
+### Register a Consumer
+
+Consumers within the same queue are notified **sequentially**, while all queues
+are notified **concurrently**. A queue consists of a slice of consumers, which
+are notified in left-to-right order. Developers are responsible for determining
+dependencies in block consumption across subsystems: independent subsystems
+should be notified concurrently, whereas dependent subsystems should be
+notified sequentially.
+
+To notify the consumers concurrently, put them in different queues,
+```go
+// consumer1 and consumer2 will be notified concurrently.
+queue1 := []chainio.Consumer{consumer1}
+blockbeatDispatcher.RegisterQueue(consumer1)
+
+queue2 := []chainio.Consumer{consumer2}
+blockbeatDispatcher.RegisterQueue(consumer2)
+```
+
+To notify the consumers sequentially, put them in the same queue,
+```go
+// consumers will be notified sequentially via,
+// consumer1 -> consumer2 -> consumer3
+queue := []chainio.Consumer{
+   consumer1,
+   consumer2,
+   consumer3,
+}
+blockbeatDispatcher.RegisterQueue(queue)
+```
+
+### Implement the `Consumer` Interface
+
+Implementing the `Consumer` interface is straightforward. Below is an example
+of how
+[`sweep.TxPublisher`](https://github.com/lightningnetwork/lnd/blob/5cec466fad44c582a64cfaeb91f6d5fd302fcf85/sweep/fee_bumper.go#L310)
+implements this interface.
+
+To start, embed the partial implementation `chainio.BeatConsumer`, which
+already provides the `ProcessBlock` implementation and commonly used
+`NotifyBlockProcessed` method,  and exposes `BlockbeatChan` for the consumer to
+receive blockbeats.
+
+```go
+type TxPublisher struct {
+   started atomic.Bool
+   stopped atomic.Bool
+
+   chainio.BeatConsumer
+
+   ...
+```
+
+We should also remember to initialize this `BeatConsumer`,
+
+```go
+...
+// Mount the block consumer.
+tp.BeatConsumer = chainio.NewBeatConsumer(tp.quit, tp.Name())
+```
+
+Finally, in the main event loop, read from `BlockbeatChan`, process the
+received blockbeat, and, crucially, call `tp.NotifyBlockProcessed` to inform
+the blockbeat dispatcher that processing is complete.
+
+```go
+for {
+      select {
+      case beat := <-tp.BlockbeatChan:
+         // Consume this blockbeat, usually it means updating the subsystem
+         // using the new block data.
+
+         // Notify we've processed the block.
+         tp.NotifyBlockProcessed(beat, nil)
+
+      ...
+```
+
+### Existing Queues
+
+Currently, we have a single queue of consumers dedicated to handling force
+closures. This queue includes `ChainArbitrator`, `UtxoSweeper`, and
+`TxPublisher`, with `ChainArbitrator` managing two internal consumers:
+`chainWatcher` and `ChannelArbitrator`. The blockbeat flows sequentially
+through the chain as follows: `ChainArbitrator => chainWatcher =>
+ChannelArbitrator => UtxoSweeper => TxPublisher`. The following diagram
+illustrates the flow within the public subsystems.
+
+```mermaid
+sequenceDiagram
+		autonumber
+		participant bb as BlockBeat
+		participant cc as ChainArb
+		participant us as UtxoSweeper
+		participant tp as TxPublisher
+		
+		note left of bb: 0. received block x,<br>dispatching...
+		
+    note over bb,cc: 1. send block x to ChainArb,<br>wait for its done signal
+		bb->>cc: block x
+		rect rgba(165, 0, 85, 0.8)
+      critical signal processed
+        cc->>bb: processed block
+      option Process error or timeout
+        bb->>bb: error and exit
+      end
+    end
+
+    note over bb,us: 2. send block x to UtxoSweeper, wait for its done signal
+		bb->>us: block x
+		rect rgba(165, 0, 85, 0.8)
+      critical signal processed
+        us->>bb: processed block
+      option Process error or timeout
+        bb->>bb: error and exit
+      end
+    end
+
+    note over bb,tp: 3. send block x to TxPublisher, wait for its done signal
+		bb->>tp: block x
+		rect rgba(165, 0, 85, 0.8)
+      critical signal processed
+        tp->>bb: processed block
+      option Process error or timeout
+        bb->>bb: error and exit
+      end
+    end
+```
diff --git a/chainio/interface.go b/chainio/interface.go
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index 000000000..70827f207
--- /dev/null
+++ b/chainio/interface.go
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+package chainio
+
+// Blockbeat defines an interface that can be used by subsystems to retrieve
+// block data. It is sent by the BlockbeatDispatcher whenever a new block is
+// received. Once the subsystem finishes processing the block, it must signal
+// it by calling NotifyBlockProcessed.
+//
+// The blockchain is a state machine - whenever there's a state change, it's
+// manifested in a block. The blockbeat is a way to notify subsystems of this
+// state change, and to provide them with the data they need to process it. In
+// other words, subsystems must react to this state change and should consider
+// being driven by the blockbeat in their own state machines.
+type Blockbeat interface {
+	// Height returns the current block height.
+	Height() int32
+}
+
+// Consumer defines a blockbeat consumer interface. Subsystems that need block
+// info must implement it.
+type Consumer interface {
+	// TODO(yy): We should also define the start methods used by the
+	// consumers such that when implementing the interface, the consumer
+	// will always be started with a blockbeat. This cannot be enforced at
+	// the moment as we need refactor all the start methods to only take a
+	// beat.
+	//
+	// Start(beat Blockbeat) error
+
+	// Name returns a human-readable string for this subsystem.
+	Name() string
+
+	// ProcessBlock takes a blockbeat and processes it. It should not
+	// return until the subsystem has updated its state based on the block
+	// data.
+	//
+	// NOTE: The consumer must try its best to NOT return an error. If an
+	// error is returned from processing the block, it means the subsystem
+	// cannot react to onchain state changes and lnd will shutdown.
+	ProcessBlock(b Blockbeat) error
+}
diff --git a/chainio/log.go b/chainio/log.go
new file mode 100644
index 000000000..2d8c26f7a
--- /dev/null
+++ b/chainio/log.go
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+package chainio
+
+import (
+	"github.com/btcsuite/btclog/v2"
+	"github.com/lightningnetwork/lnd/build"
+)
+
+// Subsystem defines the logging code for this subsystem.
+const Subsystem = "CHIO"
+
+// clog is a logger that is initialized with no output filters. This means the
+// package will not perform any logging by default until the caller requests
+// it.
+var clog btclog.Logger
+
+// The default amount of logging is none.
+func init() {
+	UseLogger(build.NewSubLogger(Subsystem, nil))
+}
+
+// DisableLog disables all library log output. Logging output is disabled by
+// default until UseLogger is called.
+func DisableLog() {
+	UseLogger(btclog.Disabled)
+}
+
+// UseLogger uses a specified Logger to output package logging info. This
+// should be used in preference to SetLogWriter if the caller is also using
+// btclog.
+func UseLogger(logger btclog.Logger) {
+	clog = logger
+}