diff --git a/aliasmgr/aliasmgr.go b/aliasmgr/aliasmgr.go
index 381476a73..f33eb391e 100644
--- a/aliasmgr/aliasmgr.go
+++ b/aliasmgr/aliasmgr.go
@@ -38,7 +38,7 @@ var (
 	lastAliasKey = []byte("last-alias-key")
 
 	// invoiceAliasBucket is a root-level bucket that stores the alias
-	// SCIDs that our peers send us in the funding_locked TLV. The keys are
+	// SCIDs that our peers send us in the channel_ready TLV. The keys are
 	// the ChannelID generated from the FundingOutpoint and the values are
 	// the remote peer's alias SCID.
 	invoiceAliasBucket = []byte("invoice-alias-bucket")
@@ -88,7 +88,7 @@ type Manager struct {
 	aliasToBase map[lnwire.ShortChannelID]lnwire.ShortChannelID
 
 	// peerAlias is a cache for the alias SCIDs that our peers send us in
-	// the funding_locked TLV. The keys are the ChannelID generated from
+	// the channel_ready TLV. The keys are the ChannelID generated from
 	// the FundingOutpoint and the values are the remote peer's alias SCID.
 	// The values should match the ones stored in the "invoice-alias-bucket"
 	// bucket.
@@ -341,7 +341,7 @@ func (m *Manager) DeleteSixConfs(baseScid lnwire.ShortChannelID) error {
 }
 
 // PutPeerAlias stores the peer's alias SCID once we learn of it in the
-// funding_locked message.
+// channel_ready message.
 func (m *Manager) PutPeerAlias(chanID lnwire.ChannelID,
 	alias lnwire.ShortChannelID) error {
 
diff --git a/channeldb/channel.go b/channeldb/channel.go
index d71f17047..b731028ee 100644
--- a/channeldb/channel.go
+++ b/channeldb/channel.go
@@ -1345,7 +1345,7 @@ func (c *OpenChannel) MarkBorked() error {
 }
 
 // SecondCommitmentPoint returns the second per-commitment-point for use in the
-// funding_locked message.
+// channel_ready message.
 func (c *OpenChannel) SecondCommitmentPoint() (*btcec.PublicKey, error) {
 	c.RLock()
 	defer c.RUnlock()
@@ -3770,7 +3770,7 @@ func putChanRevocationState(chanBucket kvdb.RwBucket, channel *OpenChannel) erro
 	// TODO(roasbeef): don't keep producer on disk
 
 	// If the next revocation is present, which is only the case after the
-	// FundingLocked message has been sent, then we'll write it to disk.
+	// ChannelReady message has been sent, then we'll write it to disk.
 	if channel.RemoteNextRevocation != nil {
 		err = WriteElements(&b, channel.RemoteNextRevocation)
 		if err != nil {
diff --git a/docs/release-notes/release-notes-0.16.1.md b/docs/release-notes/release-notes-0.16.1.md
index 790388eed..0265abc4c 100644
--- a/docs/release-notes/release-notes-0.16.1.md
+++ b/docs/release-notes/release-notes-0.16.1.md
@@ -42,6 +42,13 @@
   added to `lnrpc` so the node operator can know whether a certain request has
   happened or not.
 
+* Message `funding_locked` [has been
+  renamed](https://github.com/lightningnetwork/lnd/pull/7517) to
+  `channel_ready` internally to match the specs update. This should not change
+  anything for the users since the message type(36) stays unchanged, except in
+  the logging all the appearance of `funding_locked` replated experssion is
+  replaced with `channel_ready`.
+
 # Contributors (Alphabetical Order)
 
 * ardevd
diff --git a/funding/config_integration.go b/funding/config_integration.go
index 06bb6e173..f032a3338 100644
--- a/funding/config_integration.go
+++ b/funding/config_integration.go
@@ -7,5 +7,5 @@ import "time"
 func init() {
 	// For itest, we will use a much shorter checking interval here as
 	// local communications are very fast.
-	checkPeerFundingLockInterval = 10 * time.Millisecond
+	checkPeerChannelReadyInterval = 10 * time.Millisecond
 }
diff --git a/funding/interfaces.go b/funding/interfaces.go
index 09270d149..b87705424 100644
--- a/funding/interfaces.go
+++ b/funding/interfaces.go
@@ -23,15 +23,15 @@ type Controller interface {
 // aliasHandler is an interface that abstracts the managing of aliases.
 type aliasHandler interface {
 	// RequestAlias lets the funding manager request a unique SCID alias to
-	// use in the funding_locked message.
+	// use in the channel_ready message.
 	RequestAlias() (lnwire.ShortChannelID, error)
 
 	// PutPeerAlias lets the funding manager store the received alias SCID
-	// in the funding_locked message.
+	// in the channel_ready message.
 	PutPeerAlias(lnwire.ChannelID, lnwire.ShortChannelID) error
 
 	// GetPeerAlias lets the funding manager lookup the received alias SCID
-	// from the funding_locked message. This is not the same as GetAliases
+	// from the channel_ready message. This is not the same as GetAliases
 	// which retrieves OUR aliases for a given channel.
 	GetPeerAlias(lnwire.ChannelID) (lnwire.ShortChannelID, error)
 
diff --git a/funding/manager.go b/funding/manager.go
index 2d702ba48..83c9a1d21 100644
--- a/funding/manager.go
+++ b/funding/manager.go
@@ -40,12 +40,12 @@ var (
 	// buffers.
 	byteOrder = binary.BigEndian
 
-	// checkPeerFundingLockInterval is used when we are waiting for the
-	// peer to send us FundingLocked. We will check every 1 second to see
+	// checkPeerChannelReadyInterval is used when we are waiting for the
+	// peer to send us ChannelReady. We will check every 1 second to see
 	// if the message is received.
 	//
 	// NOTE: for itest, this value is changed to 10ms.
-	checkPeerFundingLockInterval = 1 * time.Second
+	checkPeerChannelReadyInterval = 1 * time.Second
 )
 
 // WriteOutpoint writes an outpoint to an io.Writer. This is not the same as
@@ -377,7 +377,7 @@ type Config struct {
 
 	// NotifyWhenOnline allows the FundingManager to register with a
 	// subsystem that will notify it when the peer comes online. This is
-	// used when sending the fundingLocked message, since it MUST be
+	// used when sending the channelReady message, since it MUST be
 	// delivered after the funding transaction is confirmed.
 	//
 	// NOTE: The peerChan channel must be buffered.
@@ -570,8 +570,8 @@ type Manager struct {
 	localDiscoveryMtx     sync.Mutex
 	localDiscoverySignals map[lnwire.ChannelID]chan struct{}
 
-	handleFundingLockedMtx      sync.RWMutex
-	handleFundingLockedBarriers map[lnwire.ChannelID]struct{}
+	handleChannelReadyMtx      sync.RWMutex
+	handleChannelReadyBarriers map[lnwire.ChannelID]struct{}
 
 	quit chan struct{}
 	wg   sync.WaitGroup
@@ -584,18 +584,18 @@ type channelOpeningState uint8
 
 const (
 	// markedOpen is the opening state of a channel if the funding
-	// transaction is confirmed on-chain, but fundingLocked is not yet
+	// transaction is confirmed on-chain, but channelReady is not yet
 	// successfully sent to the other peer.
 	markedOpen channelOpeningState = iota
 
-	// fundingLockedSent is the opening state of a channel if the
-	// fundingLocked message has successfully been sent to the other peer,
+	// channelReadySent is the opening state of a channel if the
+	// channelReady message has successfully been sent to the other peer,
 	// but we still haven't announced the channel to the network.
-	fundingLockedSent
+	channelReadySent
 
 	// addedToRouterGraph is the opening state of a channel if the
 	// channel has been successfully added to the router graph
-	// immediately after the fundingLocked message has been sent, but
+	// immediately after the channelReady message has been sent, but
 	// we still haven't announced the channel to the network.
 	addedToRouterGraph
 )
@@ -604,8 +604,8 @@ func (c channelOpeningState) String() string {
 	switch c {
 	case markedOpen:
 		return "markedOpen"
-	case fundingLockedSent:
-		return "fundingLocked"
+	case channelReadySent:
+		return "channelReady"
 	case addedToRouterGraph:
 		return "addedToRouterGraph"
 	default:
@@ -617,16 +617,30 @@ func (c channelOpeningState) String() string {
 // fundingManager.
 func NewFundingManager(cfg Config) (*Manager, error) {
 	return &Manager{
-		cfg:                         &cfg,
-		chanIDKey:                   cfg.TempChanIDSeed,
-		activeReservations:          make(map[serializedPubKey]pendingChannels),
-		signedReservations:          make(map[lnwire.ChannelID][32]byte),
-		newChanBarriers:             make(map[lnwire.ChannelID]chan struct{}),
-		fundingMsgs:                 make(chan *fundingMsg, msgBufferSize),
-		fundingRequests:             make(chan *InitFundingMsg, msgBufferSize),
-		localDiscoverySignals:       make(map[lnwire.ChannelID]chan struct{}),
-		handleFundingLockedBarriers: make(map[lnwire.ChannelID]struct{}),
-		quit:                        make(chan struct{}),
+		cfg:       &cfg,
+		chanIDKey: cfg.TempChanIDSeed,
+		activeReservations: make(
+			map[serializedPubKey]pendingChannels,
+		),
+		signedReservations: make(
+			map[lnwire.ChannelID][32]byte,
+		),
+		newChanBarriers: make(
+			map[lnwire.ChannelID]chan struct{},
+		),
+		fundingMsgs: make(
+			chan *fundingMsg, msgBufferSize,
+		),
+		fundingRequests: make(
+			chan *InitFundingMsg, msgBufferSize,
+		),
+		localDiscoverySignals: make(
+			map[lnwire.ChannelID]chan struct{},
+		),
+		handleChannelReadyBarriers: make(
+			map[lnwire.ChannelID]struct{},
+		),
+		quit: make(chan struct{}),
 	}, nil
 }
 
@@ -889,9 +903,9 @@ func (f *Manager) reservationCoordinator() {
 			case *lnwire.FundingSigned:
 				f.handleFundingSigned(fmsg.peer, msg)
 
-			case *lnwire.FundingLocked:
+			case *lnwire.ChannelReady:
 				f.wg.Add(1)
-				go f.handleFundingLocked(fmsg.peer, msg)
+				go f.handleChannelReady(fmsg.peer, msg)
 
 			case *lnwire.Warning:
 				f.handleWarningMsg(fmsg.peer, msg)
@@ -1000,38 +1014,38 @@ func (f *Manager) stateStep(channel *channeldb.OpenChannel,
 
 	switch channelState {
 	// The funding transaction was confirmed, but we did not successfully
-	// send the fundingLocked message to the peer, so let's do that now.
+	// send the channelReady message to the peer, so let's do that now.
 	case markedOpen:
-		err := f.sendFundingLocked(channel, lnChannel)
+		err := f.sendChannelReady(channel, lnChannel)
 		if err != nil {
-			return fmt.Errorf("failed sending fundingLocked: %v",
+			return fmt.Errorf("failed sending channelReady: %v",
 				err)
 		}
 
-		// As the fundingLocked message is now sent to the peer, the
+		// As the channelReady message is now sent to the peer, the
 		// channel is moved to the next state of the state machine. It
 		// will be moved to the last state (actually deleted from the
 		// database) after the channel is finally announced.
 		err = f.saveChannelOpeningState(
-			&channel.FundingOutpoint, fundingLockedSent,
+			&channel.FundingOutpoint, channelReadySent,
 			shortChanID,
 		)
 		if err != nil {
 			return fmt.Errorf("error setting channel state to"+
-				" fundingLockedSent: %v", err)
+				" channelReadySent: %v", err)
 		}
 
 		log.Debugf("Channel(%v) with ShortChanID %v: successfully "+
-			"sent FundingLocked", chanID, shortChanID)
+			"sent ChannelReady", chanID, shortChanID)
 
 		return nil
 
-	// fundingLocked was sent to peer, but the channel was not added to the
+	// channelReady was sent to peer, but the channel was not added to the
 	// router graph and the channel announcement was not sent.
-	case fundingLockedSent:
+	case channelReadySent:
 		// We must wait until we've received the peer's funding locked
 		// before sending a channel_update according to BOLT#07.
-		received, err := f.receivedFundingLocked(
+		received, err := f.receivedChannelReady(
 			channel.IdentityPub, chanID,
 		)
 		if err != nil {
@@ -1040,11 +1054,11 @@ func (f *Manager) stateStep(channel *channeldb.OpenChannel,
 		}
 
 		if !received {
-			// We haven't received FundingLocked, so we'll continue
+			// We haven't received ChannelReady, so we'll continue
 			// to the next iteration of the loop after sleeping for
-			// checkPeerFundingLockInterval.
+			// checkPeerChannelReadyInterval.
 			select {
-			case <-time.After(checkPeerFundingLockInterval):
+			case <-time.After(checkPeerChannelReadyInterval):
 			case <-f.quit:
 				return ErrFundingManagerShuttingDown
 			}
@@ -1054,7 +1068,7 @@ func (f *Manager) stateStep(channel *channeldb.OpenChannel,
 
 		var peerAlias *lnwire.ShortChannelID
 		if channel.IsZeroConf() {
-			// We'll need to wait until funding_locked has been
+			// We'll need to wait until channel_ready has been
 			// received and the peer lets us know the alias they
 			// want to use for the channel. With this information,
 			// we can then construct a ChannelUpdate for them.
@@ -1213,7 +1227,7 @@ func (f *Manager) advancePendingChannelState(
 		f.cfg.NotifyOpenChannelEvent(channel.FundingOutpoint)
 
 		// Find and close the discoverySignal for this channel such
-		// that FundingLocked messages will be processed.
+		// that ChannelReady messages will be processed.
 		chanID := lnwire.NewChanIDFromOutPoint(
 			&channel.FundingOutpoint,
 		)
@@ -2890,10 +2904,10 @@ func (f *Manager) handleFundingConfirmation(
 	return nil
 }
 
-// sendFundingLocked creates and sends the fundingLocked message.
+// sendChannelReady creates and sends the channelReady message.
 // This should be called after the funding transaction has been confirmed,
 // and the channelState is 'markedOpen'.
-func (f *Manager) sendFundingLocked(completeChan *channeldb.OpenChannel,
+func (f *Manager) sendChannelReady(completeChan *channeldb.OpenChannel,
 	channel *lnwallet.LightningChannel) error {
 
 	chanID := lnwire.NewChanIDFromOutPoint(&completeChan.FundingOutpoint)
@@ -2909,7 +2923,7 @@ func (f *Manager) sendFundingLocked(completeChan *channeldb.OpenChannel,
 	if err != nil {
 		return fmt.Errorf("unable to create next revocation: %v", err)
 	}
-	fundingLockedMsg := lnwire.NewFundingLocked(chanID, nextRevocation)
+	channelReadyMsg := lnwire.NewChannelReady(chanID, nextRevocation)
 
 	// If the channel negotiated the option-scid-alias feature bit, we'll
 	// send a TLV segment that includes an alias the peer can use in their
@@ -2926,19 +2940,19 @@ func (f *Manager) sendFundingLocked(completeChan *channeldb.OpenChannel,
 
 		// We can use a pointer to aliases since GetAliases returns a
 		// copy of the alias slice.
-		fundingLockedMsg.AliasScid = &aliases[0]
+		channelReadyMsg.AliasScid = &aliases[0]
 	}
 
 	// If the peer has disconnected before we reach this point, we will need
-	// to wait for him to come back online before sending the fundingLocked
-	// message. This is special for fundingLocked, since failing to send any
+	// to wait for him to come back online before sending the channelReady
+	// message. This is special for channelReady, since failing to send any
 	// of the previous messages in the funding flow just cancels the flow.
 	// But now the funding transaction is confirmed, the channel is open
-	// and we have to make sure the peer gets the fundingLocked message when
+	// and we have to make sure the peer gets the channelReady message when
 	// it comes back online. This is also crucial during restart of lnd,
-	// where we might try to resend the fundingLocked message before the
+	// where we might try to resend the channelReady message before the
 	// server has had the time to connect to the peer. We keep trying to
-	// send fundingLocked until we succeed, or the fundingManager is shut
+	// send channelReady until we succeed, or the fundingManager is shut
 	// down.
 	for {
 		peer, err := f.waitForPeerOnline(completeChan.IdentityPub)
@@ -2956,14 +2970,14 @@ func (f *Manager) sendFundingLocked(completeChan *channeldb.OpenChannel,
 		// We could also refresh the channel state instead of checking
 		// whether the feature was negotiated, but this saves us a
 		// database read.
-		if fundingLockedMsg.AliasScid == nil && localAlias &&
+		if channelReadyMsg.AliasScid == nil && localAlias &&
 			remoteAlias {
 
 			// If an alias was not assigned above and the scid
 			// alias feature was negotiated, check if we already
-			// have an alias stored in case handleFundingLocked was
+			// have an alias stored in case handleChannelReady was
 			// called before this. If an alias exists, use that in
-			// funding_locked. Otherwise, request and store an
+			// channel_ready. Otherwise, request and store an
 			// alias and use that.
 			aliases := f.cfg.AliasManager.GetAliases(
 				completeChan.ShortChannelID,
@@ -2983,31 +2997,31 @@ func (f *Manager) sendFundingLocked(completeChan *channeldb.OpenChannel,
 					return err
 				}
 
-				fundingLockedMsg.AliasScid = &alias
+				channelReadyMsg.AliasScid = &alias
 			} else {
-				fundingLockedMsg.AliasScid = &aliases[0]
+				channelReadyMsg.AliasScid = &aliases[0]
 			}
 		}
 
-		log.Infof("Peer(%x) is online, sending FundingLocked "+
+		log.Infof("Peer(%x) is online, sending ChannelReady "+
 			"for ChannelID(%v)", peerKey, chanID)
 
-		if err := peer.SendMessage(true, fundingLockedMsg); err == nil {
+		if err := peer.SendMessage(true, channelReadyMsg); err == nil {
 			// Sending succeeded, we can break out and continue the
 			// funding flow.
 			break
 		}
 
-		log.Warnf("Unable to send fundingLocked to peer %x: %v. "+
+		log.Warnf("Unable to send channelReady to peer %x: %v. "+
 			"Will retry when online", peerKey, err)
 	}
 
 	return nil
 }
 
-// receivedFundingLocked checks whether or not we've received a FundingLocked
+// receivedChannelReady checks whether or not we've received a ChannelReady
 // from the remote peer. If we have, RemoteNextRevocation will be set.
-func (f *Manager) receivedFundingLocked(node *btcec.PublicKey,
+func (f *Manager) receivedChannelReady(node *btcec.PublicKey,
 	chanID lnwire.ChannelID) (bool, error) {
 
 	// If the funding manager has exited, return an error to stop looping.
@@ -3028,7 +3042,7 @@ func (f *Manager) receivedFundingLocked(node *btcec.PublicKey,
 	channel, err := f.cfg.FindChannel(node, chanID)
 	if err != nil {
 		log.Errorf("Unable to locate ChannelID(%v) to determine if "+
-			"FundingLocked was received", chanID)
+			"ChannelReady was received", chanID)
 		return false, err
 	}
 
@@ -3140,7 +3154,7 @@ func (f *Manager) addToRouterGraph(completeChan *channeldb.OpenChannel,
 }
 
 // annAfterSixConfs broadcasts the necessary channel announcement messages to
-// the network after 6 confs. Should be called after the fundingLocked message
+// the network after 6 confs. Should be called after the channelReady message
 // is sent and the channel is added to the router graph (channelState is
 // 'addedToRouterGraph') and the channel is ready to be used. This is the last
 // step in the channel opening process, and the opening state will be deleted
@@ -3391,36 +3405,36 @@ func (f *Manager) waitForZeroConfChannel(c *channeldb.OpenChannel,
 	return nil
 }
 
-// handleFundingLocked finalizes the channel funding process and enables the
+// handleChannelReady finalizes the channel funding process and enables the
 // channel to enter normal operating mode.
-func (f *Manager) handleFundingLocked(peer lnpeer.Peer,
-	msg *lnwire.FundingLocked) {
+func (f *Manager) handleChannelReady(peer lnpeer.Peer,
+	msg *lnwire.ChannelReady) {
 
 	defer f.wg.Done()
-	log.Debugf("Received FundingLocked for ChannelID(%v) from "+
+	log.Debugf("Received ChannelReady for ChannelID(%v) from "+
 		"peer %x", msg.ChanID,
 		peer.IdentityKey().SerializeCompressed())
 
 	// If we are currently in the process of handling a funding locked
 	// message for this channel, ignore.
-	f.handleFundingLockedMtx.Lock()
-	_, ok := f.handleFundingLockedBarriers[msg.ChanID]
+	f.handleChannelReadyMtx.Lock()
+	_, ok := f.handleChannelReadyBarriers[msg.ChanID]
 	if ok {
-		log.Infof("Already handling fundingLocked for "+
+		log.Infof("Already handling channelReady for "+
 			"ChannelID(%v), ignoring.", msg.ChanID)
-		f.handleFundingLockedMtx.Unlock()
+		f.handleChannelReadyMtx.Unlock()
 		return
 	}
 
-	// If not already handling fundingLocked for this channel, set up
+	// If not already handling channelReady for this channel, set up
 	// barrier, and move on.
-	f.handleFundingLockedBarriers[msg.ChanID] = struct{}{}
-	f.handleFundingLockedMtx.Unlock()
+	f.handleChannelReadyBarriers[msg.ChanID] = struct{}{}
+	f.handleChannelReadyMtx.Unlock()
 
 	defer func() {
-		f.handleFundingLockedMtx.Lock()
-		delete(f.handleFundingLockedBarriers, msg.ChanID)
-		f.handleFundingLockedMtx.Unlock()
+		f.handleChannelReadyMtx.Lock()
+		delete(f.handleChannelReadyBarriers, msg.ChanID)
+		f.handleChannelReadyMtx.Unlock()
 	}()
 
 	f.localDiscoveryMtx.Lock()
@@ -3464,7 +3478,7 @@ func (f *Manager) handleFundingLocked(peer lnpeer.Peer,
 	// during invoice creation. In the zero-conf case, it is also used to
 	// provide a ChannelUpdate to the remote peer. This is done before the
 	// call to InsertNextRevocation in case the call to PutPeerAlias fails.
-	// If it were to fail on the first call to handleFundingLocked, we
+	// If it were to fail on the first call to handleChannelReady, we
 	// wouldn't want the channel to be usable yet.
 	if channel.NegotiatedAliasFeature() {
 		// If the AliasScid field is nil, we must fail out. We will
@@ -3487,14 +3501,14 @@ func (f *Manager) handleFundingLocked(peer lnpeer.Peer,
 		// If we do not have an alias stored, we'll create one now.
 		// This is only used in the upgrade case where a user toggles
 		// the option-scid-alias feature-bit to on. We'll also send the
-		// funding_locked message here in case the link is created
-		// before sendFundingLocked is called.
+		// channel_ready message here in case the link is created
+		// before sendChannelReady is called.
 		aliases := f.cfg.AliasManager.GetAliases(
 			channel.ShortChannelID,
 		)
 		if len(aliases) == 0 {
 			// No aliases were found so we'll request and store an
-			// alias and use it in the funding_locked message.
+			// alias and use it in the channel_ready message.
 			alias, err := f.cfg.AliasManager.RequestAlias()
 			if err != nil {
 				log.Errorf("unable to request alias: %v", err)
@@ -3517,12 +3531,12 @@ func (f *Manager) handleFundingLocked(peer lnpeer.Peer,
 				return
 			}
 
-			fundingLockedMsg := lnwire.NewFundingLocked(
+			channelReadyMsg := lnwire.NewChannelReady(
 				chanID, secondPoint,
 			)
-			fundingLockedMsg.AliasScid = &alias
+			channelReadyMsg.AliasScid = &alias
 
-			err = peer.SendMessage(true, fundingLockedMsg)
+			err = peer.SendMessage(true, channelReadyMsg)
 			if err != nil {
 				log.Errorf("unable to send funding locked: %v",
 					err)
@@ -3532,16 +3546,16 @@ func (f *Manager) handleFundingLocked(peer lnpeer.Peer,
 	}
 
 	// If the RemoteNextRevocation is non-nil, it means that we have
-	// already processed fundingLocked for this channel, so ignore. This
+	// already processed channelReady for this channel, so ignore. This
 	// check is after the alias logic so we store the peer's most recent
 	// alias. The spec requires us to validate that subsequent
-	// funding_locked messages use the same per commitment point (the
+	// channel_ready messages use the same per commitment point (the
 	// second), but it is not actually necessary since we'll just end up
 	// ignoring it. We are, however, required to *send* the same per
 	// commitment point, since another pedantic implementation might
 	// verify it.
 	if channel.RemoteNextRevocation != nil {
-		log.Infof("Received duplicate fundingLocked for "+
+		log.Infof("Received duplicate channelReady for "+
 			"ChannelID(%v), ignoring.", chanID)
 		return
 	}
diff --git a/funding/manager_test.go b/funding/manager_test.go
index f386e3de5..dc40c4d8f 100644
--- a/funding/manager_test.go
+++ b/funding/manager_test.go
@@ -900,8 +900,8 @@ func assertFundingMsgSent(t *testing.T, msgChan chan lnwire.Message,
 		sentMsg, ok = msg.(*lnwire.FundingCreated)
 	case "FundingSigned":
 		sentMsg, ok = msg.(*lnwire.FundingSigned)
-	case "FundingLocked":
-		sentMsg, ok = msg.(*lnwire.FundingLocked)
+	case "ChannelReady":
+		sentMsg, ok = msg.(*lnwire.ChannelReady)
 	case "Error":
 		sentMsg, ok = msg.(*lnwire.Error)
 	default:
@@ -1050,13 +1050,13 @@ func assertMarkedOpen(t *testing.T, alice, bob *testNode,
 	assertDatabaseState(t, bob, fundingOutPoint, markedOpen)
 }
 
-func assertFundingLockedSent(t *testing.T, alice, bob *testNode,
+func assertChannelReadySent(t *testing.T, alice, bob *testNode,
 	fundingOutPoint *wire.OutPoint) {
 
 	t.Helper()
 
-	assertDatabaseState(t, alice, fundingOutPoint, fundingLockedSent)
-	assertDatabaseState(t, bob, fundingOutPoint, fundingLockedSent)
+	assertDatabaseState(t, alice, fundingOutPoint, channelReadySent)
+	assertDatabaseState(t, bob, fundingOutPoint, channelReadySent)
 }
 
 func assertAddedToRouterGraph(t *testing.T, alice, bob *testNode,
@@ -1082,7 +1082,7 @@ func assertChannelAnnouncements(t *testing.T, alice, bob *testNode,
 
 	t.Helper()
 
-	// After the FundingLocked message is sent, Alice and Bob will each send
+	// After the ChannelReady message is sent, Alice and Bob will each send
 	// the following messages to their gossiper:
 	//	1) ChannelAnnouncement
 	//	2) ChannelUpdate
@@ -1222,7 +1222,7 @@ func assertChannelAnnouncements(t *testing.T, alice, bob *testNode,
 func assertAnnouncementSignatures(t *testing.T, alice, bob *testNode) {
 	t.Helper()
 
-	// After the FundingLocked message is sent and six confirmations have
+	// After the ChannelReady message is sent and six confirmations have
 	// been reached, the channel will be announced to the greater network
 	// by having the nodes exchange announcement signatures.
 	// Two distinct messages will be sent:
@@ -1347,7 +1347,7 @@ func assertInitialFwdingPolicyNotFound(t *testing.T, node *testNode,
 		fwdingPolicy)
 }
 
-func assertHandleFundingLocked(t *testing.T, alice, bob *testNode) {
+func assertHandleChannelReady(t *testing.T, alice, bob *testNode) {
 	t.Helper()
 
 	// They should both send the new channel state to their peer.
@@ -1405,26 +1405,28 @@ func TestFundingManagerNormalWorkflow(t *testing.T) {
 	assertMarkedOpen(t, alice, bob, fundingOutPoint)
 
 	// After the funding transaction is mined, Alice will send
-	// fundingLocked to Bob.
-	fundingLockedAlice := assertFundingMsgSent(
-		t, alice.msgChan, "FundingLocked",
-	).(*lnwire.FundingLocked)
+	// channelReady to Bob.
+	channelReadyAlice, ok := assertFundingMsgSent(
+		t, alice.msgChan, "ChannelReady",
+	).(*lnwire.ChannelReady)
+	require.True(t, ok)
 
 	// And similarly Bob will send funding locked to Alice.
-	fundingLockedBob := assertFundingMsgSent(
-		t, bob.msgChan, "FundingLocked",
-	).(*lnwire.FundingLocked)
+	channelReadyBob, ok := assertFundingMsgSent(
+		t, bob.msgChan, "ChannelReady",
+	).(*lnwire.ChannelReady)
+	require.True(t, ok)
 
 	// Check that the state machine is updated accordingly
-	assertFundingLockedSent(t, alice, bob, fundingOutPoint)
+	assertChannelReadySent(t, alice, bob, fundingOutPoint)
 
-	// Exchange the fundingLocked messages.
-	alice.fundingMgr.ProcessFundingMsg(fundingLockedBob, bob)
-	bob.fundingMgr.ProcessFundingMsg(fundingLockedAlice, alice)
+	// Exchange the channelReady messages.
+	alice.fundingMgr.ProcessFundingMsg(channelReadyBob, bob)
+	bob.fundingMgr.ProcessFundingMsg(channelReadyAlice, alice)
 
 	// Check that they notify the breach arbiter and peer about the new
 	// channel.
-	assertHandleFundingLocked(t, alice, bob)
+	assertHandleChannelReady(t, alice, bob)
 
 	// Make sure both fundingManagers send the expected channel
 	// announcements.
@@ -1635,7 +1637,7 @@ func TestFundingManagerRestartBehavior(t *testing.T) {
 	)
 
 	// After the funding transaction gets mined, both nodes will send the
-	// fundingLocked message to the other peer. If the funding node fails
+	// channelReady message to the other peer. If the funding node fails
 	// before this message has been successfully sent, it should retry
 	// sending it on restart. We mimic this behavior by letting the
 	// SendToPeer method return an error, as if the message was not
@@ -1666,7 +1668,7 @@ func TestFundingManagerRestartBehavior(t *testing.T) {
 	assertMarkedOpen(t, alice, bob, fundingOutPoint)
 
 	// After the funding transaction was mined, Bob should have successfully
-	// sent the fundingLocked message, while Alice failed sending it. In
+	// sent the channelReady message, while Alice failed sending it. In
 	// Alice's case this means that there should be no messages for Bob, and
 	// the channel should still be in state 'markedOpen'
 	select {
@@ -1677,18 +1679,19 @@ func TestFundingManagerRestartBehavior(t *testing.T) {
 	}
 
 	// Bob will send funding locked to Alice.
-	fundingLockedBob := assertFundingMsgSent(
-		t, bob.msgChan, "FundingLocked",
-	).(*lnwire.FundingLocked)
+	channelReadyBob, ok := assertFundingMsgSent(
+		t, bob.msgChan, "ChannelReady",
+	).(*lnwire.ChannelReady)
+	require.True(t, ok)
 
 	// Alice should still be markedOpen
 	assertDatabaseState(t, alice, fundingOutPoint, markedOpen)
 
-	// While Bob successfully sent fundingLocked.
-	assertDatabaseState(t, bob, fundingOutPoint, fundingLockedSent)
+	// While Bob successfully sent channelReady.
+	assertDatabaseState(t, bob, fundingOutPoint, channelReadySent)
 
 	// We now recreate Alice's fundingManager with the correct sendMessage
-	// implementation, and expect it to retry sending the fundingLocked
+	// implementation, and expect it to retry sending the channelReady
 	// message. We'll explicitly shut down Alice's funding manager to
 	// prevent a race when overriding the sendMessage implementation.
 	if err := alice.fundingMgr.Stop(); err != nil {
@@ -1706,12 +1709,13 @@ func TestFundingManagerRestartBehavior(t *testing.T) {
 		return errChan
 	}
 
-	fundingLockedAlice := assertFundingMsgSent(
-		t, alice.msgChan, "FundingLocked",
-	).(*lnwire.FundingLocked)
+	channelReadyAlice, ok := assertFundingMsgSent(
+		t, alice.msgChan, "ChannelReady",
+	).(*lnwire.ChannelReady)
+	require.True(t, ok)
 
-	// The state should now be fundingLockedSent
-	assertDatabaseState(t, alice, fundingOutPoint, fundingLockedSent)
+	// The state should now be channelReadySent
+	assertDatabaseState(t, alice, fundingOutPoint, channelReadySent)
 
 	// Check that the channel announcements were never sent
 	select {
@@ -1722,13 +1726,13 @@ func TestFundingManagerRestartBehavior(t *testing.T) {
 		// Expected
 	}
 
-	// Exchange the fundingLocked messages.
-	alice.fundingMgr.ProcessFundingMsg(fundingLockedBob, bob)
-	bob.fundingMgr.ProcessFundingMsg(fundingLockedAlice, alice)
+	// Exchange the channelReady messages.
+	alice.fundingMgr.ProcessFundingMsg(channelReadyBob, bob)
+	bob.fundingMgr.ProcessFundingMsg(channelReadyAlice, alice)
 
 	// Check that they notify the breach arbiter and peer about the new
 	// channel.
-	assertHandleFundingLocked(t, alice, bob)
+	assertHandleChannelReady(t, alice, bob)
 
 	// Next up, we check that Alice rebroadcasts the announcement
 	// messages on restart. Bob should as expected send announcements.
@@ -1771,7 +1775,7 @@ func TestFundingManagerRestartBehavior(t *testing.T) {
 
 // TestFundingManagerOfflinePeer checks that the fundingManager waits for the
 // server to notify when the peer comes online, in case sending the
-// fundingLocked message fails the first time.
+// channelReady message fails the first time.
 func TestFundingManagerOfflinePeer(t *testing.T) {
 	t.Parallel()
 
@@ -1791,8 +1795,8 @@ func TestFundingManagerOfflinePeer(t *testing.T) {
 	)
 
 	// After the funding transaction gets mined, both nodes will send the
-	// fundingLocked message to the other peer. If the funding node fails
-	// to send the fundingLocked message to the peer, it should wait for
+	// channelReady message to the other peer. If the funding node fails
+	// to send the channelReady message to the peer, it should wait for
 	// the server to notify it that the peer is back online, and try again.
 	// We'll save the current implementation of sendMessage to restore the
 	// original behavior later on.
@@ -1823,7 +1827,7 @@ func TestFundingManagerOfflinePeer(t *testing.T) {
 	assertMarkedOpen(t, alice, bob, fundingOutPoint)
 
 	// After the funding transaction was mined, Bob should have successfully
-	// sent the fundingLocked message, while Alice failed sending it. In
+	// sent the channelReady message, while Alice failed sending it. In
 	// Alice's case this means that there should be no messages for Bob, and
 	// the channel should still be in state 'markedOpen'
 	select {
@@ -1834,15 +1838,16 @@ func TestFundingManagerOfflinePeer(t *testing.T) {
 	}
 
 	// Bob will send funding locked to Alice
-	fundingLockedBob := assertFundingMsgSent(
-		t, bob.msgChan, "FundingLocked",
-	).(*lnwire.FundingLocked)
+	channelReadyBob, ok := assertFundingMsgSent(
+		t, bob.msgChan, "ChannelReady",
+	).(*lnwire.ChannelReady)
+	require.True(t, ok)
 
 	// Alice should still be markedOpen
 	assertDatabaseState(t, alice, fundingOutPoint, markedOpen)
 
-	// While Bob successfully sent fundingLocked.
-	assertDatabaseState(t, bob, fundingOutPoint, fundingLockedSent)
+	// While Bob successfully sent channelReady.
+	assertDatabaseState(t, bob, fundingOutPoint, channelReadySent)
 
 	// Alice should be waiting for the server to notify when Bob comes back
 	// online.
@@ -1868,7 +1873,7 @@ func TestFundingManagerOfflinePeer(t *testing.T) {
 	}
 
 	// Before sending on the con chan, update Alice's NotifyWhenOnline
-	// function so that the next invocation in receivedFundingLocked will
+	// function so that the next invocation in receivedChannelReady will
 	// use this new function.
 	alice.fundingMgr.cfg.NotifyWhenOnline = func(peer [33]byte,
 		connected chan<- lnpeer.Peer) {
@@ -1881,21 +1886,22 @@ func TestFundingManagerOfflinePeer(t *testing.T) {
 	bob.sendMessage = workingSendMessage
 	con <- bob
 
-	// This should make Alice send the fundingLocked.
-	fundingLockedAlice := assertFundingMsgSent(
-		t, alice.msgChan, "FundingLocked",
-	).(*lnwire.FundingLocked)
+	// This should make Alice send the channelReady.
+	channelReadyAlice, ok := assertFundingMsgSent(
+		t, alice.msgChan, "ChannelReady",
+	).(*lnwire.ChannelReady)
+	require.True(t, ok)
 
-	// The state should now be fundingLockedSent
-	assertDatabaseState(t, alice, fundingOutPoint, fundingLockedSent)
+	// The state should now be channelReadySent
+	assertDatabaseState(t, alice, fundingOutPoint, channelReadySent)
 
-	// Exchange the fundingLocked messages.
-	alice.fundingMgr.ProcessFundingMsg(fundingLockedBob, bob)
-	bob.fundingMgr.ProcessFundingMsg(fundingLockedAlice, alice)
+	// Exchange the channelReady messages.
+	alice.fundingMgr.ProcessFundingMsg(channelReadyBob, bob)
+	bob.fundingMgr.ProcessFundingMsg(channelReadyAlice, alice)
 
 	// Check that they notify the breach arbiter and peer about the new
 	// channel.
-	assertHandleFundingLocked(t, alice, bob)
+	assertHandleChannelReady(t, alice, bob)
 
 	// Make sure both fundingManagers send the expected channel
 	// announcements.
@@ -2272,10 +2278,10 @@ func TestFundingManagerFundingNotTimeoutInitiator(t *testing.T) {
 	assertNumPendingChannelsBecomes(t, bob, 0)
 }
 
-// TestFundingManagerReceiveFundingLockedTwice checks that the fundingManager
-// continues to operate as expected in case we receive a duplicate fundingLocked
+// TestFundingManagerReceiveChannelReadyTwice checks that the fundingManager
+// continues to operate as expected in case we receive a duplicate channelReady
 // message.
-func TestFundingManagerReceiveFundingLockedTwice(t *testing.T) {
+func TestFundingManagerReceiveChannelReadyTwice(t *testing.T) {
 	t.Parallel()
 
 	alice, bob := setupFundingManagers(t)
@@ -2310,27 +2316,29 @@ func TestFundingManagerReceiveFundingLockedTwice(t *testing.T) {
 	assertMarkedOpen(t, alice, bob, fundingOutPoint)
 
 	// After the funding transaction is mined, Alice will send
-	// fundingLocked to Bob.
-	fundingLockedAlice := assertFundingMsgSent(
-		t, alice.msgChan, "FundingLocked",
-	).(*lnwire.FundingLocked)
+	// channelReady to Bob.
+	channelReadyAlice, ok := assertFundingMsgSent(
+		t, alice.msgChan, "ChannelReady",
+	).(*lnwire.ChannelReady)
+	require.True(t, ok)
 
 	// And similarly Bob will send funding locked to Alice.
-	fundingLockedBob := assertFundingMsgSent(
-		t, bob.msgChan, "FundingLocked",
-	).(*lnwire.FundingLocked)
+	channelReadyBob, ok := assertFundingMsgSent(
+		t, bob.msgChan, "ChannelReady",
+	).(*lnwire.ChannelReady)
+	require.True(t, ok)
 
 	// Check that the state machine is updated accordingly
-	assertFundingLockedSent(t, alice, bob, fundingOutPoint)
+	assertChannelReadySent(t, alice, bob, fundingOutPoint)
 
-	// Send the fundingLocked message twice to Alice, and once to Bob.
-	alice.fundingMgr.ProcessFundingMsg(fundingLockedBob, bob)
-	alice.fundingMgr.ProcessFundingMsg(fundingLockedBob, bob)
-	bob.fundingMgr.ProcessFundingMsg(fundingLockedAlice, alice)
+	// Send the channelReady message twice to Alice, and once to Bob.
+	alice.fundingMgr.ProcessFundingMsg(channelReadyBob, bob)
+	alice.fundingMgr.ProcessFundingMsg(channelReadyBob, bob)
+	bob.fundingMgr.ProcessFundingMsg(channelReadyAlice, alice)
 
 	// Check that they notify the breach arbiter and peer about the new
 	// channel.
-	assertHandleFundingLocked(t, alice, bob)
+	assertHandleChannelReady(t, alice, bob)
 
 	// Alice should not send the channel state the second time, as the
 	// second funding locked should just be ignored.
@@ -2341,9 +2349,9 @@ func TestFundingManagerReceiveFundingLockedTwice(t *testing.T) {
 		// Expected
 	}
 
-	// Another fundingLocked should also be ignored, since Alice should
+	// Another channelReady should also be ignored, since Alice should
 	// have updated her database at this point.
-	alice.fundingMgr.ProcessFundingMsg(fundingLockedBob, bob)
+	alice.fundingMgr.ProcessFundingMsg(channelReadyBob, bob)
 	select {
 	case <-alice.newChannels:
 		t.Fatalf("alice sent new channel to peer a second time")
@@ -2384,7 +2392,7 @@ func TestFundingManagerReceiveFundingLockedTwice(t *testing.T) {
 }
 
 // TestFundingManagerRestartAfterChanAnn checks that the fundingManager properly
-// handles receiving a fundingLocked after the its own fundingLocked and channel
+// handles receiving a channelReady after the its own channelReady and channel
 // announcement is sent and gets restarted.
 func TestFundingManagerRestartAfterChanAnn(t *testing.T) {
 	t.Parallel()
@@ -2421,26 +2429,28 @@ func TestFundingManagerRestartAfterChanAnn(t *testing.T) {
 	assertMarkedOpen(t, alice, bob, fundingOutPoint)
 
 	// After the funding transaction is mined, Alice will send
-	// fundingLocked to Bob.
-	fundingLockedAlice := assertFundingMsgSent(
-		t, alice.msgChan, "FundingLocked",
-	).(*lnwire.FundingLocked)
+	// channelReady to Bob.
+	channelReadyAlice, ok := assertFundingMsgSent(
+		t, alice.msgChan, "ChannelReady",
+	).(*lnwire.ChannelReady)
+	require.True(t, ok)
 
 	// And similarly Bob will send funding locked to Alice.
-	fundingLockedBob := assertFundingMsgSent(
-		t, bob.msgChan, "FundingLocked",
-	).(*lnwire.FundingLocked)
+	channelReadyBob, ok := assertFundingMsgSent(
+		t, bob.msgChan, "ChannelReady",
+	).(*lnwire.ChannelReady)
+	require.True(t, ok)
 
 	// Check that the state machine is updated accordingly
-	assertFundingLockedSent(t, alice, bob, fundingOutPoint)
+	assertChannelReadySent(t, alice, bob, fundingOutPoint)
 
-	// Exchange the fundingLocked messages.
-	alice.fundingMgr.ProcessFundingMsg(fundingLockedBob, bob)
-	bob.fundingMgr.ProcessFundingMsg(fundingLockedAlice, alice)
+	// Exchange the channelReady messages.
+	alice.fundingMgr.ProcessFundingMsg(channelReadyBob, bob)
+	bob.fundingMgr.ProcessFundingMsg(channelReadyAlice, alice)
 
 	// Check that they notify the breach arbiter and peer about the new
 	// channel.
-	assertHandleFundingLocked(t, alice, bob)
+	assertHandleChannelReady(t, alice, bob)
 
 	// Make sure both fundingManagers send the expected channel
 	// announcements.
@@ -2454,7 +2464,7 @@ func TestFundingManagerRestartAfterChanAnn(t *testing.T) {
 	waitForOpenUpdate(t, updateChan)
 
 	// At this point we restart Alice's fundingManager, before she receives
-	// the fundingLocked message. After restart, she will receive it, and
+	// the channelReady message. After restart, she will receive it, and
 	// we expect her to be able to handle it correctly.
 	recreateAliceFundingManager(t, alice)
 
@@ -2480,10 +2490,10 @@ func TestFundingManagerRestartAfterChanAnn(t *testing.T) {
 	assertNoFwdingPolicy(t, alice, bob, fundingOutPoint)
 }
 
-// TestFundingManagerRestartAfterReceivingFundingLocked checks that the
+// TestFundingManagerRestartAfterReceivingChannelReady checks that the
 // fundingManager continues to operate as expected after it has received
-// fundingLocked and then gets restarted.
-func TestFundingManagerRestartAfterReceivingFundingLocked(t *testing.T) {
+// channelReady and then gets restarted.
+func TestFundingManagerRestartAfterReceivingChannelReady(t *testing.T) {
 	t.Parallel()
 
 	alice, bob := setupFundingManagers(t)
@@ -2518,28 +2528,30 @@ func TestFundingManagerRestartAfterReceivingFundingLocked(t *testing.T) {
 	assertMarkedOpen(t, alice, bob, fundingOutPoint)
 
 	// After the funding transaction is mined, Alice will send
-	// fundingLocked to Bob.
-	fundingLockedAlice := assertFundingMsgSent(
-		t, alice.msgChan, "FundingLocked",
-	).(*lnwire.FundingLocked)
+	// channelReady to Bob.
+	channelReadyAlice, ok := assertFundingMsgSent(
+		t, alice.msgChan, "ChannelReady",
+	).(*lnwire.ChannelReady)
+	require.True(t, ok)
 
 	// And similarly Bob will send funding locked to Alice.
-	fundingLockedBob := assertFundingMsgSent(
-		t, bob.msgChan, "FundingLocked",
-	).(*lnwire.FundingLocked)
+	channelReadyBob, ok := assertFundingMsgSent(
+		t, bob.msgChan, "ChannelReady",
+	).(*lnwire.ChannelReady)
+	require.True(t, ok)
 
 	// Check that the state machine is updated accordingly
-	assertFundingLockedSent(t, alice, bob, fundingOutPoint)
+	assertChannelReadySent(t, alice, bob, fundingOutPoint)
 
-	// Let Alice immediately get the fundingLocked message.
-	alice.fundingMgr.ProcessFundingMsg(fundingLockedBob, bob)
+	// Let Alice immediately get the channelReady message.
+	alice.fundingMgr.ProcessFundingMsg(channelReadyBob, bob)
 
-	// Also let Bob get the fundingLocked message.
-	bob.fundingMgr.ProcessFundingMsg(fundingLockedAlice, alice)
+	// Also let Bob get the channelReady message.
+	bob.fundingMgr.ProcessFundingMsg(channelReadyAlice, alice)
 
 	// Check that they notify the breach arbiter and peer about the new
 	// channel.
-	assertHandleFundingLocked(t, alice, bob)
+	assertHandleChannelReady(t, alice, bob)
 
 	// At this point we restart Alice's fundingManager.
 	recreateAliceFundingManager(t, alice)
@@ -2611,26 +2623,28 @@ func TestFundingManagerPrivateChannel(t *testing.T) {
 	assertMarkedOpen(t, alice, bob, fundingOutPoint)
 
 	// After the funding transaction is mined, Alice will send
-	// fundingLocked to Bob.
-	fundingLockedAlice := assertFundingMsgSent(
-		t, alice.msgChan, "FundingLocked",
-	).(*lnwire.FundingLocked)
+	// channelReady to Bob.
+	channelReadyAlice, ok := assertFundingMsgSent(
+		t, alice.msgChan, "ChannelReady",
+	).(*lnwire.ChannelReady)
+	require.True(t, ok)
 
 	// And similarly Bob will send funding locked to Alice.
-	fundingLockedBob := assertFundingMsgSent(
-		t, bob.msgChan, "FundingLocked",
-	).(*lnwire.FundingLocked)
+	channelReadyBob, ok := assertFundingMsgSent(
+		t, bob.msgChan, "ChannelReady",
+	).(*lnwire.ChannelReady)
+	require.True(t, ok)
 
 	// Check that the state machine is updated accordingly
-	assertFundingLockedSent(t, alice, bob, fundingOutPoint)
+	assertChannelReadySent(t, alice, bob, fundingOutPoint)
 
-	// Exchange the fundingLocked messages.
-	alice.fundingMgr.ProcessFundingMsg(fundingLockedBob, bob)
-	bob.fundingMgr.ProcessFundingMsg(fundingLockedAlice, alice)
+	// Exchange the channelReady messages.
+	alice.fundingMgr.ProcessFundingMsg(channelReadyBob, bob)
+	bob.fundingMgr.ProcessFundingMsg(channelReadyAlice, alice)
 
 	// Check that they notify the breach arbiter and peer about the new
 	// channel.
-	assertHandleFundingLocked(t, alice, bob)
+	assertHandleChannelReady(t, alice, bob)
 
 	// Make sure both fundingManagers send the expected channel
 	// announcements.
@@ -2734,26 +2748,28 @@ func TestFundingManagerPrivateRestart(t *testing.T) {
 	assertMarkedOpen(t, alice, bob, fundingOutPoint)
 
 	// After the funding transaction is mined, Alice will send
-	// fundingLocked to Bob.
-	fundingLockedAlice := assertFundingMsgSent(
-		t, alice.msgChan, "FundingLocked",
-	).(*lnwire.FundingLocked)
+	// channelReady to Bob.
+	channelReadyAlice, ok := assertFundingMsgSent(
+		t, alice.msgChan, "ChannelReady",
+	).(*lnwire.ChannelReady)
+	require.True(t, ok)
 
 	// And similarly Bob will send funding locked to Alice.
-	fundingLockedBob := assertFundingMsgSent(
-		t, bob.msgChan, "FundingLocked",
-	).(*lnwire.FundingLocked)
+	channelReadyBob, ok := assertFundingMsgSent(
+		t, bob.msgChan, "ChannelReady",
+	).(*lnwire.ChannelReady)
+	require.True(t, ok)
 
 	// Check that the state machine is updated accordingly
-	assertFundingLockedSent(t, alice, bob, fundingOutPoint)
+	assertChannelReadySent(t, alice, bob, fundingOutPoint)
 
-	// Exchange the fundingLocked messages.
-	alice.fundingMgr.ProcessFundingMsg(fundingLockedBob, bob)
-	bob.fundingMgr.ProcessFundingMsg(fundingLockedAlice, alice)
+	// Exchange the channelReady messages.
+	alice.fundingMgr.ProcessFundingMsg(channelReadyBob, bob)
+	bob.fundingMgr.ProcessFundingMsg(channelReadyAlice, alice)
 
 	// Check that they notify the breach arbiter and peer about the new
 	// channel.
-	assertHandleFundingLocked(t, alice, bob)
+	assertHandleChannelReady(t, alice, bob)
 
 	// Make sure both fundingManagers send the expected channel
 	// announcements.
@@ -3169,23 +3185,25 @@ func TestFundingManagerCustomChannelParameters(t *testing.T) {
 	}
 
 	// After the funding transaction is mined, Alice will send
-	// fundingLocked to Bob.
-	fundingLockedAlice := assertFundingMsgSent(
-		t, alice.msgChan, "FundingLocked",
-	).(*lnwire.FundingLocked)
+	// channelReady to Bob.
+	channelReadyAlice, ok := assertFundingMsgSent(
+		t, alice.msgChan, "ChannelReady",
+	).(*lnwire.ChannelReady)
+	require.True(t, ok)
 
 	// And similarly Bob will send funding locked to Alice.
-	fundingLockedBob := assertFundingMsgSent(
-		t, bob.msgChan, "FundingLocked",
-	).(*lnwire.FundingLocked)
+	channelReadyBob, ok := assertFundingMsgSent(
+		t, bob.msgChan, "ChannelReady",
+	).(*lnwire.ChannelReady)
+	require.True(t, ok)
 
-	// Exchange the fundingLocked messages.
-	alice.fundingMgr.ProcessFundingMsg(fundingLockedBob, bob)
-	bob.fundingMgr.ProcessFundingMsg(fundingLockedAlice, alice)
+	// Exchange the channelReady messages.
+	alice.fundingMgr.ProcessFundingMsg(channelReadyBob, bob)
+	bob.fundingMgr.ProcessFundingMsg(channelReadyAlice, alice)
 
 	// Check that they notify the breach arbiter and peer about the new
 	// channel.
-	assertHandleFundingLocked(t, alice, bob)
+	assertHandleChannelReady(t, alice, bob)
 
 	// Make sure both fundingManagers send the expected channel
 	// announcements.
@@ -3486,14 +3504,14 @@ func TestFundingManagerMaxPendingChannels(t *testing.T) {
 			Tx: txs[i],
 		}
 
-		// Expect both to be sending FundingLocked.
+		// Expect both to be sending ChannelReady.
 		_ = assertFundingMsgSent(
-			t, alice.msgChan, "FundingLocked",
-		).(*lnwire.FundingLocked)
+			t, alice.msgChan, "ChannelReady",
+		).(*lnwire.ChannelReady)
 
 		_ = assertFundingMsgSent(
-			t, bob.msgChan, "FundingLocked",
-		).(*lnwire.FundingLocked)
+			t, bob.msgChan, "ChannelReady",
+		).(*lnwire.ChannelReady)
 
 	}
 
@@ -4202,26 +4220,28 @@ func TestFundingManagerZeroConf(t *testing.T) {
 		Index: 0,
 	}
 
-	// Assert that Bob's funding_locked message has an AliasScid.
-	bobFundingLocked := assertFundingMsgSent(
-		t, bob.msgChan, "FundingLocked",
-	).(*lnwire.FundingLocked)
-	require.NotNil(t, bobFundingLocked.AliasScid)
-	require.Equal(t, *bobFundingLocked.AliasScid, alias)
+	// Assert that Bob's channel_ready message has an AliasScid.
+	bobChannelReady, ok := assertFundingMsgSent(
+		t, bob.msgChan, "ChannelReady",
+	).(*lnwire.ChannelReady)
+	require.True(t, ok)
+	require.NotNil(t, bobChannelReady.AliasScid)
+	require.Equal(t, *bobChannelReady.AliasScid, alias)
 
 	// Do the same for Alice as well.
-	aliceFundingLocked := assertFundingMsgSent(
-		t, alice.msgChan, "FundingLocked",
-	).(*lnwire.FundingLocked)
-	require.NotNil(t, aliceFundingLocked.AliasScid)
-	require.Equal(t, *aliceFundingLocked.AliasScid, alias)
+	aliceChannelReady, ok := assertFundingMsgSent(
+		t, alice.msgChan, "ChannelReady",
+	).(*lnwire.ChannelReady)
+	require.True(t, ok)
+	require.NotNil(t, aliceChannelReady.AliasScid)
+	require.Equal(t, *aliceChannelReady.AliasScid, alias)
 
-	// Exchange the funding_locked messages.
-	alice.fundingMgr.ProcessFundingMsg(bobFundingLocked, bob)
-	bob.fundingMgr.ProcessFundingMsg(aliceFundingLocked, alice)
+	// Exchange the channel_ready messages.
+	alice.fundingMgr.ProcessFundingMsg(bobChannelReady, bob)
+	bob.fundingMgr.ProcessFundingMsg(aliceChannelReady, alice)
 
 	// We'll assert that they both create new links.
-	assertHandleFundingLocked(t, alice, bob)
+	assertHandleChannelReady(t, alice, bob)
 
 	// We'll now assert that both sides send ChannelAnnouncement and
 	// ChannelUpdate messages.
diff --git a/htlcswitch/link.go b/htlcswitch/link.go
index 335ec351f..d2dfc20ab 100644
--- a/htlcswitch/link.go
+++ b/htlcswitch/link.go
@@ -724,12 +724,12 @@ func (l *channelLink) syncChanStates() error {
 		// done any state updates yet, then we'll retransmit the
 		// funding locked message first. We do this, as at this point
 		// we can't be sure if they've really received the
-		// FundingLocked message.
+		// ChannelReady message.
 		if remoteChanSyncMsg.NextLocalCommitHeight == 1 &&
 			localChanSyncMsg.NextLocalCommitHeight == 1 &&
 			!l.channel.IsPending() {
 
-			l.log.Infof("resending FundingLocked message to peer")
+			l.log.Infof("resending ChannelReady message to peer")
 
 			nextRevocation, err := l.channel.NextRevocationKey()
 			if err != nil {
@@ -737,13 +737,13 @@ func (l *channelLink) syncChanStates() error {
 					"revocation: %v", err)
 			}
 
-			fundingLockedMsg := lnwire.NewFundingLocked(
+			channelReadyMsg := lnwire.NewChannelReady(
 				l.ChanID(), nextRevocation,
 			)
 
 			// For channels that negotiated the option-scid-alias
 			// feature bit, ensure that we send over the alias in
-			// the funding_locked message. We'll send the first
+			// the channel_ready message. We'll send the first
 			// alias we find for the channel since it does not
 			// matter which alias we send. We'll error out if no
 			// aliases are found.
@@ -759,13 +759,13 @@ func (l *channelLink) syncChanStates() error {
 				// getAliases returns a copy of the alias slice
 				// so it is ok to use a pointer to the first
 				// entry.
-				fundingLockedMsg.AliasScid = &aliases[0]
+				channelReadyMsg.AliasScid = &aliases[0]
 			}
 
-			err = l.cfg.Peer.SendMessage(false, fundingLockedMsg)
+			err = l.cfg.Peer.SendMessage(false, channelReadyMsg)
 			if err != nil {
 				return fmt.Errorf("unable to re-send "+
-					"FundingLocked: %v", err)
+					"ChannelReady: %v", err)
 			}
 		}
 
diff --git a/htlcswitch/link_test.go b/htlcswitch/link_test.go
index b58c8a63b..72afa2ebb 100644
--- a/htlcswitch/link_test.go
+++ b/htlcswitch/link_test.go
@@ -1684,8 +1684,8 @@ func TestChannelLinkSingleHopMessageOrdering(t *testing.T) {
 		{"alice", "bob", &lnwire.ChannelReestablish{}, false},
 		{"bob", "alice", &lnwire.ChannelReestablish{}, false},
 
-		{"alice", "bob", &lnwire.FundingLocked{}, false},
-		{"bob", "alice", &lnwire.FundingLocked{}, false},
+		{"alice", "bob", &lnwire.ChannelReady{}, false},
+		{"bob", "alice", &lnwire.ChannelReady{}, false},
 
 		{"alice", "bob", &lnwire.UpdateAddHTLC{}, false},
 		{"alice", "bob", &lnwire.CommitSig{}, false},
@@ -3303,8 +3303,8 @@ func TestChannelRetransmission(t *testing.T) {
 				{"alice", "bob", &lnwire.ChannelReestablish{}, false},
 				{"bob", "alice", &lnwire.ChannelReestablish{}, false},
 
-				{"alice", "bob", &lnwire.FundingLocked{}, false},
-				{"bob", "alice", &lnwire.FundingLocked{}, false},
+				{"alice", "bob", &lnwire.ChannelReady{}, false},
+				{"bob", "alice", &lnwire.ChannelReady{}, false},
 
 				// Send payment from Alice to Bob and intercept
 				// the last revocation message, in this case
@@ -3343,8 +3343,8 @@ func TestChannelRetransmission(t *testing.T) {
 				{"alice", "bob", &lnwire.ChannelReestablish{}, false},
 				{"bob", "alice", &lnwire.ChannelReestablish{}, false},
 
-				{"alice", "bob", &lnwire.FundingLocked{}, false},
-				{"bob", "alice", &lnwire.FundingLocked{}, false},
+				{"alice", "bob", &lnwire.ChannelReady{}, false},
+				{"bob", "alice", &lnwire.ChannelReady{}, false},
 
 				// Send payment from Alice to Bob and intercept
 				// the last revocation message, in this case
@@ -3385,8 +3385,8 @@ func TestChannelRetransmission(t *testing.T) {
 				{"alice", "bob", &lnwire.ChannelReestablish{}, false},
 				{"bob", "alice", &lnwire.ChannelReestablish{}, false},
 
-				{"alice", "bob", &lnwire.FundingLocked{}, false},
-				{"bob", "alice", &lnwire.FundingLocked{}, false},
+				{"alice", "bob", &lnwire.ChannelReady{}, false},
+				{"bob", "alice", &lnwire.ChannelReady{}, false},
 
 				// Attempt make a payment from Alice to Bob,
 				// which is intercepted, emulating the Bob
@@ -3399,8 +3399,8 @@ func TestChannelRetransmission(t *testing.T) {
 				{"alice", "bob", &lnwire.ChannelReestablish{}, false},
 				{"bob", "alice", &lnwire.ChannelReestablish{}, false},
 
-				{"alice", "bob", &lnwire.FundingLocked{}, false},
-				{"bob", "alice", &lnwire.FundingLocked{}, false},
+				{"alice", "bob", &lnwire.ChannelReady{}, false},
+				{"bob", "alice", &lnwire.ChannelReady{}, false},
 
 				// After Bob has notified Alice that he didn't
 				// receive updates Alice should re-send them.
@@ -3816,8 +3816,8 @@ func TestChannelLinkUpdateCommitFee(t *testing.T) {
 		{"alice", "bob", &lnwire.ChannelReestablish{}, false},
 		{"bob", "alice", &lnwire.ChannelReestablish{}, false},
 
-		{"alice", "bob", &lnwire.FundingLocked{}, false},
-		{"bob", "alice", &lnwire.FundingLocked{}, false},
+		{"alice", "bob", &lnwire.ChannelReady{}, false},
+		{"bob", "alice", &lnwire.ChannelReady{}, false},
 
 		// First fee update.
 		{"alice", "bob", &lnwire.UpdateFee{}, false},
diff --git a/htlcswitch/mock.go b/htlcswitch/mock.go
index 866e7d36f..cec170a35 100644
--- a/htlcswitch/mock.go
+++ b/htlcswitch/mock.go
@@ -627,7 +627,7 @@ func (s *mockServer) readHandler(message lnwire.Message) error {
 		targetChan = msg.ChanID
 	case *lnwire.CommitSig:
 		targetChan = msg.ChanID
-	case *lnwire.FundingLocked:
+	case *lnwire.ChannelReady:
 		// Ignore
 		return nil
 	case *lnwire.ChannelReestablish:
diff --git a/htlcswitch/switch_test.go b/htlcswitch/switch_test.go
index b1e134954..099fdb8f6 100644
--- a/htlcswitch/switch_test.go
+++ b/htlcswitch/switch_test.go
@@ -82,7 +82,7 @@ func TestSwitchAddDuplicateLink(t *testing.T) {
 // TestSwitchHasActiveLink tests the behavior of HasActiveLink, and asserts that
 // it only returns true if a link's short channel id has confirmed (meaning the
 // channel is no longer pending) and it's EligibleToForward method returns true,
-// i.e. it has received FundingLocked from the remote peer.
+// i.e. it has received ChannelReady from the remote peer.
 func TestSwitchHasActiveLink(t *testing.T) {
 	t.Parallel()
 
diff --git a/htlcswitch/test_utils.go b/htlcswitch/test_utils.go
index e1bd6783a..c1bfb1f55 100644
--- a/htlcswitch/test_utils.go
+++ b/htlcswitch/test_utils.go
@@ -495,7 +495,7 @@ func getChanID(msg lnwire.Message) (lnwire.ChannelID, error) {
 		chanID = msg.ChanID
 	case *lnwire.ChannelReestablish:
 		chanID = msg.ChanID
-	case *lnwire.FundingLocked:
+	case *lnwire.ChannelReady:
 		chanID = msg.ChanID
 	case *lnwire.UpdateFee:
 		chanID = msg.ChanID
diff --git a/lntest/README.md b/lntest/README.md
index be28b218f..5752031ec 100644
--- a/lntest/README.md
+++ b/lntest/README.md
@@ -101,8 +101,8 @@ the real-world has. Aside from that, `lnd` has several places that use
 different code, which is triggered by the build flag `integration`, to speed up
 the tests. They are summarized as followings,
 
-1. `funding.checkPeerFundingLockInterval`, which is used when we wait for the
-   peer to send us `FundingLocked`. This value is 1 second in `lnd`, and 10
+1. `funding.checkPeerChannelReadyInterval`, which is used when we wait for the
+   peer to send us `ChannelReady`. This value is 1 second in `lnd`, and 10
    milliseconds in `lntest`.
 2. `lncfg.ProtocolOptions`, which is used to specify protocol flags. In `lnd`,
    anchor and script enforced lease are enabled by default, while in `lntest`,
diff --git a/lnwallet/channel.go b/lnwallet/channel.go
index 97b7ac44d..d715d5ed6 100644
--- a/lnwallet/channel.go
+++ b/lnwallet/channel.go
@@ -4063,7 +4063,7 @@ func (lc *LightningChannel) ProcessChanSyncMsg(
 
 			// If we get a failure due to not knowing their next
 			// point, then this is fine as they'll either send
-			// FundingLocked, or revoke their next state to allow
+			// ChannelReady, or revoke their next state to allow
 			// us to continue forwards.
 			case err == ErrNoWindow:
 
@@ -7220,7 +7220,7 @@ func (lc *LightningChannel) generateRevocation(height uint64) (*lnwire.RevokeAnd
 	// Along with this revocation, we'll also send the _next_ commitment
 	// point that the remote party should use to create our next commitment
 	// transaction. We use a +2 here as we already gave them a look ahead
-	// of size one after the FundingLocked message was sent:
+	// of size one after the ChannelReady message was sent:
 	//
 	// 0: current revocation, 1: their "next" revocation, 2: this revocation
 	//
diff --git a/lnwire/funding_locked.go b/lnwire/channel_ready.go
similarity index 73%
rename from lnwire/funding_locked.go
rename to lnwire/channel_ready.go
index fb47356ba..9027997de 100644
--- a/lnwire/funding_locked.go
+++ b/lnwire/channel_ready.go
@@ -8,12 +8,12 @@ import (
 	"github.com/lightningnetwork/lnd/tlv"
 )
 
-// FundingLocked is the message that both parties to a new channel creation
+// ChannelReady is the message that both parties to a new channel creation
 // send once they have observed the funding transaction being confirmed on the
-// blockchain. FundingLocked contains the signatures necessary for the channel
+// blockchain. ChannelReady contains the signatures necessary for the channel
 // participants to advertise the existence of the channel to the rest of the
 // network.
-type FundingLocked struct {
+type ChannelReady struct {
 	// ChanID is the outpoint of the channel's funding transaction. This
 	// can be used to query for the channel in the database.
 	ChanID ChannelID
@@ -33,26 +33,26 @@ type FundingLocked struct {
 	ExtraData ExtraOpaqueData
 }
 
-// NewFundingLocked creates a new FundingLocked message, populating it with the
+// NewChannelReady creates a new ChannelReady message, populating it with the
 // necessary IDs and revocation secret.
-func NewFundingLocked(cid ChannelID, npcp *btcec.PublicKey) *FundingLocked {
-	return &FundingLocked{
+func NewChannelReady(cid ChannelID, npcp *btcec.PublicKey) *ChannelReady {
+	return &ChannelReady{
 		ChanID:                 cid,
 		NextPerCommitmentPoint: npcp,
 		ExtraData:              make([]byte, 0),
 	}
 }
 
-// A compile time check to ensure FundingLocked implements the lnwire.Message
+// A compile time check to ensure ChannelReady implements the lnwire.Message
 // interface.
-var _ Message = (*FundingLocked)(nil)
+var _ Message = (*ChannelReady)(nil)
 
-// Decode deserializes the serialized FundingLocked message stored in the
-// passed io.Reader into the target FundingLocked using the deserialization
+// Decode deserializes the serialized ChannelReady message stored in the
+// passed io.Reader into the target ChannelReady using the deserialization
 // rules defined by the passed protocol version.
 //
 // This is part of the lnwire.Message interface.
-func (c *FundingLocked) Decode(r io.Reader, pver uint32) error {
+func (c *ChannelReady) Decode(r io.Reader, pver uint32) error {
 	// Read all the mandatory fields in the message.
 	err := ReadElements(r,
 		&c.ChanID,
@@ -80,12 +80,12 @@ func (c *FundingLocked) Decode(r io.Reader, pver uint32) error {
 	return nil
 }
 
-// Encode serializes the target FundingLocked message into the passed io.Writer
+// Encode serializes the target ChannelReady message into the passed io.Writer
 // implementation. Serialization will observe the rules defined by the passed
 // protocol version.
 //
 // This is part of the lnwire.Message interface.
-func (c *FundingLocked) Encode(w *bytes.Buffer, pver uint32) error {
+func (c *ChannelReady) Encode(w *bytes.Buffer, pver uint32) error {
 	if err := WriteChannelID(w, c.ChanID); err != nil {
 		return err
 	}
@@ -107,9 +107,9 @@ func (c *FundingLocked) Encode(w *bytes.Buffer, pver uint32) error {
 }
 
 // MsgType returns the uint32 code which uniquely identifies this message as a
-// FundingLocked message on the wire.
+// ChannelReady message on the wire.
 //
 // This is part of the lnwire.Message interface.
-func (c *FundingLocked) MsgType() MessageType {
-	return MsgFundingLocked
+func (c *ChannelReady) MsgType() MessageType {
+	return MsgChannelReady
 }
diff --git a/lnwire/features.go b/lnwire/features.go
index c386fd37b..76dab3b05 100644
--- a/lnwire/features.go
+++ b/lnwire/features.go
@@ -169,12 +169,12 @@ const (
 
 	// ScidAliasRequired is a required feature bit that signals that the
 	// node requires understanding of ShortChannelID aliases in the TLV
-	// segment of the funding_locked message.
+	// segment of the channel_ready message.
 	ScidAliasRequired FeatureBit = 46
 
 	// ScidAliasOptional is an optional feature bit that signals that the
 	// node understands ShortChannelID aliases in the TLV segment of the
-	// funding_locked message.
+	// channel_ready message.
 	ScidAliasOptional FeatureBit = 47
 
 	// PaymentMetadataRequired is a required bit that denotes that if an
diff --git a/lnwire/fuzz_test.go b/lnwire/fuzz_test.go
index 34d144c84..f578663a3 100644
--- a/lnwire/fuzz_test.go
+++ b/lnwire/fuzz_test.go
@@ -286,10 +286,10 @@ func FuzzFundingCreated(f *testing.F) {
 	})
 }
 
-func FuzzFundingLocked(f *testing.F) {
+func FuzzChannelReady(f *testing.F) {
 	f.Fuzz(func(t *testing.T, data []byte) {
-		// Prefix with MsgFundingLocked.
-		data = prefixWithMsgType(data, MsgFundingLocked)
+		// Prefix with MsgChannelReady.
+		data = prefixWithMsgType(data, MsgChannelReady)
 
 		// Pass the message into our general fuzz harness for wire
 		// messages!
diff --git a/lnwire/lnwire_test.go b/lnwire/lnwire_test.go
index 96d0c8ae5..1ad93c96b 100644
--- a/lnwire/lnwire_test.go
+++ b/lnwire/lnwire_test.go
@@ -566,8 +566,7 @@ func TestLightningWireProtocol(t *testing.T) {
 
 			v[0] = reflect.ValueOf(req)
 		},
-		MsgFundingLocked: func(v []reflect.Value, r *rand.Rand) {
-
+		MsgChannelReady: func(v []reflect.Value, r *rand.Rand) {
 			var c [32]byte
 			if _, err := r.Read(c[:]); err != nil {
 				t.Fatalf("unable to generate chan id: %v", err)
@@ -580,7 +579,7 @@ func TestLightningWireProtocol(t *testing.T) {
 				return
 			}
 
-			req := NewFundingLocked(ChannelID(c), pubKey)
+			req := NewChannelReady(ChannelID(c), pubKey)
 
 			v[0] = reflect.ValueOf(*req)
 		},
@@ -1013,8 +1012,8 @@ func TestLightningWireProtocol(t *testing.T) {
 			},
 		},
 		{
-			msgType: MsgFundingLocked,
-			scenario: func(m FundingLocked) bool {
+			msgType: MsgChannelReady,
+			scenario: func(m ChannelReady) bool {
 				return mainScenario(&m)
 			},
 		},
diff --git a/lnwire/message.go b/lnwire/message.go
index 2e71173e5..02447b806 100644
--- a/lnwire/message.go
+++ b/lnwire/message.go
@@ -31,7 +31,7 @@ const (
 	MsgAcceptChannel                       = 33
 	MsgFundingCreated                      = 34
 	MsgFundingSigned                       = 35
-	MsgFundingLocked                       = 36
+	MsgChannelReady                        = 36
 	MsgShutdown                            = 38
 	MsgClosingSigned                       = 39
 	MsgUpdateAddHTLC                       = 128
@@ -88,8 +88,8 @@ func (t MessageType) String() string {
 		return "MsgFundingCreated"
 	case MsgFundingSigned:
 		return "MsgFundingSigned"
-	case MsgFundingLocked:
-		return "FundingLocked"
+	case MsgChannelReady:
+		return "ChannelReady"
 	case MsgShutdown:
 		return "Shutdown"
 	case MsgClosingSigned:
@@ -190,8 +190,8 @@ func makeEmptyMessage(msgType MessageType) (Message, error) {
 		msg = &FundingCreated{}
 	case MsgFundingSigned:
 		msg = &FundingSigned{}
-	case MsgFundingLocked:
-		msg = &FundingLocked{}
+	case MsgChannelReady:
+		msg = &ChannelReady{}
 	case MsgShutdown:
 		msg = &Shutdown{}
 	case MsgClosingSigned:
diff --git a/lnwire/message_test.go b/lnwire/message_test.go
index 090978a74..f39a88995 100644
--- a/lnwire/message_test.go
+++ b/lnwire/message_test.go
@@ -268,7 +268,7 @@ func makeAllMessages(t testing.TB, r *rand.Rand) []lnwire.Message {
 	msgAll = append(msgAll, newMsgAcceptChannel(t, r))
 	msgAll = append(msgAll, newMsgFundingCreated(t, r))
 	msgAll = append(msgAll, newMsgFundingSigned(t, r))
-	msgAll = append(msgAll, newMsgFundingLocked(t, r))
+	msgAll = append(msgAll, newMsgChannelReady(t, r))
 	msgAll = append(msgAll, newMsgShutdown(t, r))
 	msgAll = append(msgAll, newMsgClosingSigned(t, r))
 	msgAll = append(msgAll, newMsgUpdateAddHTLC(t, r))
@@ -442,7 +442,7 @@ func newMsgFundingSigned(t testing.TB, r io.Reader) *lnwire.FundingSigned {
 	return msg
 }
 
-func newMsgFundingLocked(t testing.TB, r io.Reader) *lnwire.FundingLocked {
+func newMsgChannelReady(t testing.TB, r io.Reader) *lnwire.ChannelReady {
 	t.Helper()
 
 	var c [32]byte
@@ -452,7 +452,7 @@ func newMsgFundingLocked(t testing.TB, r io.Reader) *lnwire.FundingLocked {
 
 	pubKey := randPubKey(t)
 
-	msg := lnwire.NewFundingLocked(lnwire.ChannelID(c), pubKey)
+	msg := lnwire.NewChannelReady(lnwire.ChannelID(c), pubKey)
 	msg.ExtraData = createExtraData(t, r)
 
 	return msg
diff --git a/netann/chan_status_manager.go b/netann/chan_status_manager.go
index 8f29888e5..8340c202c 100644
--- a/netann/chan_status_manager.go
+++ b/netann/chan_status_manager.go
@@ -54,7 +54,7 @@ type ChanStatusConfig struct {
 	// IsChannelActive checks whether the channel identified by the provided
 	// ChannelID is considered active. This should only return true if the
 	// channel has been sufficiently confirmed, the channel has received
-	// FundingLocked, and the remote peer is online.
+	// ChannelReady, and the remote peer is online.
 	IsChannelActive func(lnwire.ChannelID) bool
 
 	// ApplyChannelUpdate processes new ChannelUpdates signed by our node by
diff --git a/peer/brontide.go b/peer/brontide.go
index 09f016851..edc6c6b51 100644
--- a/peer/brontide.go
+++ b/peer/brontide.go
@@ -717,11 +717,11 @@ func (p *Brontide) loadActiveChannels(chans []*channeldb.OpenChannel) (
 			// manager are not aware of each other's states and if
 			// we did not do this, we would accept alias channel
 			// updates after 6 confirmations, which would be buggy.
-			// We'll queue a funding_locked message with the new
+			// We'll queue a channel_ready message with the new
 			// alias. This should technically be done *after* the
 			// reestablish, but this behavior is pre-existing since
 			// the funding manager may already queue a
-			// funding_locked before the channel_reestablish.
+			// channel_ready before the channel_reestablish.
 			if !dbChan.IsPending {
 				aliasScid, err := p.cfg.RequestAlias()
 				if err != nil {
@@ -740,18 +740,18 @@ func (p *Brontide) loadActiveChannels(chans []*channeldb.OpenChannel) (
 				)
 
 				// Fetch the second commitment point to send in
-				// the funding_locked message.
+				// the channel_ready message.
 				second, err := dbChan.SecondCommitmentPoint()
 				if err != nil {
 					return nil, err
 				}
 
-				fundingLockedMsg := lnwire.NewFundingLocked(
+				channelReadyMsg := lnwire.NewChannelReady(
 					chanID, second,
 				)
-				fundingLockedMsg.AliasScid = &aliasScid
+				channelReadyMsg.AliasScid = &aliasScid
 
-				msgs = append(msgs, fundingLockedMsg)
+				msgs = append(msgs, channelReadyMsg)
 			}
 
 			// If we've negotiated the option-scid-alias feature
@@ -1549,7 +1549,7 @@ out:
 			*lnwire.AcceptChannel,
 			*lnwire.FundingCreated,
 			*lnwire.FundingSigned,
-			*lnwire.FundingLocked:
+			*lnwire.ChannelReady:
 
 			p.cfg.FundingManager.ProcessFundingMsg(msg, p)
 
@@ -1798,7 +1798,7 @@ func messageSummary(msg lnwire.Message) string {
 	case *lnwire.FundingSigned:
 		return fmt.Sprintf("chan_id=%v", msg.ChanID)
 
-	case *lnwire.FundingLocked:
+	case *lnwire.ChannelReady:
 		return fmt.Sprintf("chan_id=%v, next_point=%x",
 			msg.ChanID, msg.NextPerCommitmentPoint.SerializeCompressed())
 
@@ -2376,7 +2376,7 @@ out:
 				}
 
 				p.log.Infof("Processing retransmitted "+
-					"FundingLocked for ChannelPoint(%v)",
+					"ChannelReady for ChannelPoint(%v)",
 					chanPoint)
 
 				nextRevoke := newChan.RemoteNextRevocation