diff --git a/core/src/apps/base.py b/core/src/apps/base.py
index 1bbcaaeb2..ae05cf044 100644
--- a/core/src/apps/base.py
+++ b/core/src/apps/base.py
@@ -65,12 +65,10 @@ def get_features() -> Features:
             Capability.PassphraseEntry,
         ]
     f.sd_card_present = sdcard.is_present()
+    f.initialized = storage.device.is_initialized()
 
     # private fields:
     if config.is_unlocked():
-        # While this is technically not private, we can't reliably find the value while
-        # locked. Instead of sending always False, we choose to not send it.
-        f.initialized = storage.is_initialized()
 
         f.needs_backup = storage.device.needs_backup()
         f.unfinished_backup = storage.device.unfinished_backup()
diff --git a/core/src/apps/cardano/seed.py b/core/src/apps/cardano/seed.py
index 96997d10f..9c87b4599 100644
--- a/core/src/apps/cardano/seed.py
+++ b/core/src/apps/cardano/seed.py
@@ -1,5 +1,4 @@
-import storage
-from storage import cache
+from storage import cache, device
 from trezor import wire
 from trezor.crypto import bip32
 
@@ -39,7 +38,7 @@ class Keychain:
 
 @cache.stored_async(cache.APP_CARDANO_ROOT)
 async def get_keychain(ctx: wire.Context) -> Keychain:
-    if not storage.is_initialized():
+    if not device.is_initialized():
         raise wire.NotInitialized("Device is not initialized")
 
     passphrase = await get_passphrase(ctx)
diff --git a/core/src/apps/common/seed.py b/core/src/apps/common/seed.py
index bcf4d2417..988899dbf 100644
--- a/core/src/apps/common/seed.py
+++ b/core/src/apps/common/seed.py
@@ -1,5 +1,4 @@
-import storage
-from storage import cache
+from storage import cache, device
 from trezor import wire
 from trezor.crypto import bip32, hashlib, hmac
 
@@ -113,7 +112,7 @@ class Keychain:
 
 @cache.stored_async(cache.APP_COMMON_SEED)
 async def _get_seed(ctx: wire.Context) -> bytes:
-    if not storage.is_initialized():
+    if not device.is_initialized():
         raise wire.NotInitialized("Device is not initialized")
     passphrase = await get_passphrase(ctx)
     return mnemonic.get_seed(passphrase)
@@ -121,7 +120,7 @@ async def _get_seed(ctx: wire.Context) -> bytes:
 
 @cache.stored(cache.APP_COMMON_SEED_WITHOUT_PASSPHRASE)
 def _get_seed_without_passphrase() -> bytes:
-    if not storage.is_initialized():
+    if not device.is_initialized():
         raise Exception("Device is not initialized")
     return mnemonic.get_seed(progress_bar=False)
 
diff --git a/core/src/apps/debug/load_device.py b/core/src/apps/debug/load_device.py
index e47b9cc09..9a8000224 100644
--- a/core/src/apps/debug/load_device.py
+++ b/core/src/apps/debug/load_device.py
@@ -54,7 +54,7 @@ async def load_device(ctx, msg):
 
 
 def _validate(msg) -> int:
-    if storage.is_initialized():
+    if storage.device.is_initialized():
         raise wire.UnexpectedMessage("Already initialized")
 
     if not msg.mnemonics:
diff --git a/core/src/apps/homescreen/homescreen.py b/core/src/apps/homescreen/homescreen.py
index 5bca10549..7bc74a0a3 100644
--- a/core/src/apps/homescreen/homescreen.py
+++ b/core/src/apps/homescreen/homescreen.py
@@ -12,18 +12,18 @@ async def homescreen() -> None:
 class Homescreen(HomescreenBase):
     def __init__(self) -> None:
         super().__init__()
-        if not storage.is_initialized():
+        if not storage.device.is_initialized():
             self.label = "Go to trezor.io/start"
 
     def on_render(self) -> None:
         # warning bar on top
-        if storage.is_initialized() and storage.device.no_backup():
+        if storage.device.is_initialized() and storage.device.no_backup():
             ui.header_error("SEEDLESS")
-        elif storage.is_initialized() and storage.device.unfinished_backup():
+        elif storage.device.is_initialized() and storage.device.unfinished_backup():
             ui.header_error("BACKUP FAILED!")
-        elif storage.is_initialized() and storage.device.needs_backup():
+        elif storage.device.is_initialized() and storage.device.needs_backup():
             ui.header_warning("NEEDS BACKUP!")
-        elif storage.is_initialized() and not config.has_pin():
+        elif storage.device.is_initialized() and not config.has_pin():
             ui.header_warning("PIN NOT SET!")
         else:
             ui.display.bar(0, 0, ui.WIDTH, ui.HEIGHT, ui.BG)
diff --git a/core/src/apps/management/apply_flags.py b/core/src/apps/management/apply_flags.py
index 0f7b48b2d..679826a71 100644
--- a/core/src/apps/management/apply_flags.py
+++ b/core/src/apps/management/apply_flags.py
@@ -1,12 +1,11 @@
 import storage.device
 from storage.device import set_flags
+from trezor import wire
 from trezor.messages.Success import Success
 
-import wire
-
 
 async def apply_flags(ctx, msg):
-    if not storage.is_initialized():
+    if not storage.device.is_initialized():
         raise wire.NotInitialized("Device is not initialized")
     set_flags(msg.flags)
     return Success(message="Flags applied")
diff --git a/core/src/apps/management/apply_settings.py b/core/src/apps/management/apply_settings.py
index 4f2aa88f4..434315be9 100644
--- a/core/src/apps/management/apply_settings.py
+++ b/core/src/apps/management/apply_settings.py
@@ -12,7 +12,7 @@ if False:
 
 
 async def apply_settings(ctx: wire.Context, msg: ApplySettings):
-    if not storage.is_initialized():
+    if not storage.device.is_initialized():
         raise wire.NotInitialized("Device is not initialized")
     if (
         msg.homescreen is None
diff --git a/core/src/apps/management/backup_device.py b/core/src/apps/management/backup_device.py
index 5de5db95d..d7f2c4c28 100644
--- a/core/src/apps/management/backup_device.py
+++ b/core/src/apps/management/backup_device.py
@@ -8,7 +8,7 @@ from apps.management.reset_device import backup_seed, layout
 
 
 async def backup_device(ctx, msg):
-    if not storage.is_initialized():
+    if not storage.device.is_initialized():
         raise wire.NotInitialized("Device is not initialized")
     if not storage.device.needs_backup():
         raise wire.ProcessError("Seed already backed up")
diff --git a/core/src/apps/management/change_pin.py b/core/src/apps/management/change_pin.py
index 1858d9457..1b47f2cdc 100644
--- a/core/src/apps/management/change_pin.py
+++ b/core/src/apps/management/change_pin.py
@@ -1,4 +1,4 @@
-from storage import is_initialized
+from storage.device import is_initialized
 from trezor import config, ui, wire
 from trezor.messages.Success import Success
 from trezor.pin import pin_to_int
diff --git a/core/src/apps/management/change_wipe_code.py b/core/src/apps/management/change_wipe_code.py
index 9ac59114f..4c4877812 100644
--- a/core/src/apps/management/change_wipe_code.py
+++ b/core/src/apps/management/change_wipe_code.py
@@ -1,4 +1,4 @@
-from storage import is_initialized
+from storage.device import is_initialized
 from trezor import config, ui, wire
 from trezor.messages.Success import Success
 from trezor.pin import pin_to_int
diff --git a/core/src/apps/management/get_next_u2f_counter.py b/core/src/apps/management/get_next_u2f_counter.py
index 0389bb9ab..c7d842dc1 100644
--- a/core/src/apps/management/get_next_u2f_counter.py
+++ b/core/src/apps/management/get_next_u2f_counter.py
@@ -11,7 +11,7 @@ from apps.common.confirm import require_confirm
 async def get_next_u2f_counter(
     ctx: wire.Context, msg: GetNextU2FCounter
 ) -> NextU2FCounter:
-    if not storage.is_initialized():
+    if not storage.device.is_initialized():
         raise wire.NotInitialized("Device is not initialized")
     text = Text("Get next U2F counter", ui.ICON_CONFIG)
     text.normal("Do you really want to")
diff --git a/core/src/apps/management/recovery_device/__init__.py b/core/src/apps/management/recovery_device/__init__.py
index 0aba6736e..0757c2c1a 100644
--- a/core/src/apps/management/recovery_device/__init__.py
+++ b/core/src/apps/management/recovery_device/__init__.py
@@ -42,6 +42,10 @@ async def recovery_device(ctx: wire.Context, msg: RecoveryDevice) -> Success:
 
     await _continue_dialog(ctx, msg)
 
+    if not msg.dry_run:
+        # wipe storage to make sure the device is in a clear state
+        storage.reset()
+
     # for dry run pin needs to be entered
     if msg.dry_run:
         curpin, salt = await request_pin_and_sd_salt(ctx, "Enter PIN")
@@ -68,9 +72,9 @@ async def recovery_device(ctx: wire.Context, msg: RecoveryDevice) -> Success:
 
 
 def _validate(msg: RecoveryDevice) -> None:
-    if not msg.dry_run and storage.is_initialized():
+    if not msg.dry_run and storage.device.is_initialized():
         raise wire.UnexpectedMessage("Already initialized")
-    if msg.dry_run and not storage.is_initialized():
+    if msg.dry_run and not storage.device.is_initialized():
         raise wire.NotInitialized("Device is not initialized")
 
     if msg.enforce_wordlist is False:
diff --git a/core/src/apps/management/reset_device/__init__.py b/core/src/apps/management/reset_device/__init__.py
index e15c848d6..8f2328752 100644
--- a/core/src/apps/management/reset_device/__init__.py
+++ b/core/src/apps/management/reset_device/__init__.py
@@ -28,6 +28,9 @@ async def reset_device(ctx: wire.Context, msg: ResetDevice) -> Success:
     # make sure user knows they're setting up a new wallet
     await layout.show_reset_device_warning(ctx, msg.backup_type)
 
+    # wipe storage to make sure the device is in a clear state
+    storage.reset()
+
     # request and set new PIN
     if msg.pin_protection:
         newpin = await request_pin_confirm(ctx)
@@ -164,7 +167,7 @@ def _validate_reset_device(msg: ResetDevice) -> None:
             raise wire.ProcessError("Invalid strength (has to be 128, 192 or 256 bits)")
     if msg.display_random and (msg.skip_backup or msg.no_backup):
         raise wire.ProcessError("Can't show internal entropy when backup is skipped")
-    if storage.is_initialized():
+    if storage.device.is_initialized():
         raise wire.UnexpectedMessage("Already initialized")
 
 
diff --git a/core/src/apps/management/sd_protect.py b/core/src/apps/management/sd_protect.py
index 877a75c2e..8da0deab9 100644
--- a/core/src/apps/management/sd_protect.py
+++ b/core/src/apps/management/sd_protect.py
@@ -41,7 +41,7 @@ async def _set_salt(
 
 
 async def sd_protect(ctx: wire.Context, msg: SdProtect) -> Success:
-    if not storage.is_initialized():
+    if not storage.device.is_initialized():
         raise wire.NotInitialized("Device is not initialized")
 
     if msg.operation == SdProtectOperationType.ENABLE:
diff --git a/core/src/apps/management/set_u2f_counter.py b/core/src/apps/management/set_u2f_counter.py
index e4f9cc339..2e43a1409 100644
--- a/core/src/apps/management/set_u2f_counter.py
+++ b/core/src/apps/management/set_u2f_counter.py
@@ -9,7 +9,7 @@ from apps.common.confirm import require_confirm
 
 
 async def set_u2f_counter(ctx: wire.Context, msg: SetU2FCounter) -> Success:
-    if not storage.is_initialized():
+    if not storage.device.is_initialized():
         raise wire.NotInitialized("Device is not initialized")
     if msg.u2f_counter is None:
         raise wire.ProcessError("No value provided")
diff --git a/core/src/apps/webauthn/add_resident_credential.py b/core/src/apps/webauthn/add_resident_credential.py
index 8fe1b0d54..acbc72360 100644
--- a/core/src/apps/webauthn/add_resident_credential.py
+++ b/core/src/apps/webauthn/add_resident_credential.py
@@ -1,4 +1,4 @@
-import storage
+import storage.device
 from trezor import ui, wire
 from trezor.messages.Success import Success
 from trezor.messages.WebAuthnAddResidentCredential import WebAuthnAddResidentCredential
@@ -31,7 +31,7 @@ class ConfirmAddCredential(ConfirmInfo):
 async def add_resident_credential(
     ctx: wire.Context, msg: WebAuthnAddResidentCredential
 ) -> Success:
-    if not storage.is_initialized():
+    if not storage.device.is_initialized():
         raise wire.NotInitialized("Device is not initialized")
     if not msg.credential_id:
         raise wire.ProcessError("Missing credential ID parameter.")
diff --git a/core/src/apps/webauthn/fido2.py b/core/src/apps/webauthn/fido2.py
index aef8d20e0..1bce26113 100644
--- a/core/src/apps/webauthn/fido2.py
+++ b/core/src/apps/webauthn/fido2.py
@@ -1221,7 +1221,7 @@ def msg_register(req: Msg, dialog_mgr: DialogManager) -> Cmd:
         dialog_mgr.set_state(new_state)
         return msg_error(req.cid, _SW_CONDITIONS_NOT_SATISFIED)
 
-    if not storage.is_initialized():
+    if not storage.device.is_initialized():
         if __debug__:
             log.warning(__name__, "not initialized")
         # There is no standard way to decline a U2F request, but responding with ERR_CHANNEL_BUSY
@@ -1302,7 +1302,7 @@ def msg_authenticate(req: Msg, dialog_mgr: DialogManager) -> Cmd:
         dialog_mgr.set_state(new_state)
         return msg_error(req.cid, _SW_CONDITIONS_NOT_SATISFIED)
 
-    if not storage.is_initialized():
+    if not storage.device.is_initialized():
         if __debug__:
             log.warning(__name__, "not initialized")
         # Device is not registered with the RP.
@@ -1483,7 +1483,7 @@ def cbor_make_credential_process(
 ) -> Union[State, Cmd]:
     from apps.webauthn import knownapps
 
-    if not storage.is_initialized():
+    if not storage.device.is_initialized():
         if __debug__:
             log.warning(__name__, "not initialized")
         return cbor_error(req.cid, _ERR_OTHER)
@@ -1663,7 +1663,7 @@ def cbor_get_assertion(req: Cmd, dialog_mgr: DialogManager) -> Optional[Cmd]:
 def cbor_get_assertion_process(
     req: Cmd, dialog_mgr: DialogManager
 ) -> Union[State, Cmd]:
-    if not storage.is_initialized():
+    if not storage.device.is_initialized():
         if __debug__:
             log.warning(__name__, "not initialized")
         return cbor_error(req.cid, _ERR_OTHER)
@@ -1924,7 +1924,7 @@ def cbor_client_pin(req: Cmd) -> Cmd:
 
 
 def cbor_reset(req: Cmd, dialog_mgr: DialogManager) -> Optional[Cmd]:
-    if not storage.is_initialized():
+    if not storage.device.is_initialized():
         if __debug__:
             log.warning(__name__, "not initialized")
         # Return success, because the authenticator is already in factory default state.
diff --git a/core/src/apps/webauthn/remove_resident_credential.py b/core/src/apps/webauthn/remove_resident_credential.py
index e03c23756..5d55e8f72 100644
--- a/core/src/apps/webauthn/remove_resident_credential.py
+++ b/core/src/apps/webauthn/remove_resident_credential.py
@@ -1,3 +1,4 @@
+import storage.device
 import storage.resident_credentials
 from trezor import wire
 from trezor.messages.Success import Success
@@ -32,7 +33,7 @@ class ConfirmRemoveCredential(ConfirmInfo):
 async def remove_resident_credential(
     ctx: wire.Context, msg: WebAuthnRemoveResidentCredential
 ) -> Success:
-    if not storage.is_initialized():
+    if not storage.device.is_initialized():
         raise wire.NotInitialized("Device is not initialized")
     if msg.index is None:
         raise wire.ProcessError("Missing credential index parameter.")
diff --git a/core/src/storage/__init__.py b/core/src/storage/__init__.py
index df4888bd4..2539c2f6d 100644
--- a/core/src/storage/__init__.py
+++ b/core/src/storage/__init__.py
@@ -6,10 +6,6 @@ def set_current_version() -> None:
     device.set_version(common.STORAGE_VERSION_CURRENT)
 
 
-def is_initialized() -> bool:
-    return device.is_version_stored()
-
-
 def wipe() -> None:
     config.wipe()
     cache.clear_all()
@@ -21,6 +17,20 @@ def init_unlocked() -> None:
     if version == common.STORAGE_VERSION_01:
         _migrate_from_version_01()
 
+    # In FWs <= 2.3.1 'version' denoted whether the device is initialized or not.
+    # In 2.3.2 we have introduced a new field 'initialized' for that.
+    if device.is_version_stored() and not device.is_initialized():
+        common.set_bool(common.APP_DEVICE, device.INITIALIZED, True, public=True)
+
+
+def reset() -> None:
+    """
+    Wipes storage but keeps the device id unchanged.
+    """
+    device_id = device.get_device_id()
+    wipe()
+    common.set(common.APP_DEVICE, device.DEVICE_ID, device_id.encode(), public=True)
+
 
 def _migrate_from_version_01() -> None:
     # Make the U2F counter public and writable even when storage is locked.
diff --git a/core/src/storage/device.py b/core/src/storage/device.py
index 0c6040d4d..6a66de9c7 100644
--- a/core/src/storage/device.py
+++ b/core/src/storage/device.py
@@ -14,7 +14,7 @@ _NAMESPACE = common.APP_DEVICE
 
 # fmt: off
 # Keys:
-_DEVICE_ID                 = const(0x00)  # bytes
+DEVICE_ID                  = const(0x00)  # bytes
 _VERSION                   = const(0x01)  # int
 _MNEMONIC_SECRET           = const(0x02)  # bytes
 _LANGUAGE                  = const(0x03)  # str
@@ -33,6 +33,7 @@ _ROTATION                  = const(0x0F)  # int
 _SLIP39_IDENTIFIER         = const(0x10)  # bool
 _SLIP39_ITERATION_EXPONENT = const(0x11)  # int
 _SD_SALT_AUTH_KEY          = const(0x12)  # bytes
+INITIALIZED                = const(0x13)  # bool (0x01 or empty)
 
 _DEFAULT_BACKUP_TYPE       = BackupType.Bip39
 # fmt: on
@@ -60,15 +61,19 @@ def set_version(version: bytes) -> None:
     common.set(_NAMESPACE, _VERSION, version)
 
 
+def is_initialized() -> bool:
+    return common.get_bool(_NAMESPACE, INITIALIZED, public=True)
+
+
 def _new_device_id() -> str:
     return hexlify(random.bytes(12)).decode().upper()
 
 
 def get_device_id() -> str:
-    dev_id = common.get(_NAMESPACE, _DEVICE_ID, True)  # public
+    dev_id = common.get(_NAMESPACE, DEVICE_ID, public=True)
     if not dev_id:
         dev_id = _new_device_id().encode()
-        common.set(_NAMESPACE, _DEVICE_ID, dev_id, True)  # public
+        common.set(_NAMESPACE, DEVICE_ID, dev_id, public=True)
     return dev_id.decode()
 
 
@@ -123,6 +128,7 @@ def store_mnemonic_secret(
     common.set(_NAMESPACE, _MNEMONIC_SECRET, secret)
     common.set_uint8(_NAMESPACE, _BACKUP_TYPE, backup_type)
     common.set_true_or_delete(_NAMESPACE, _NO_BACKUP, no_backup)
+    common.set_bool(_NAMESPACE, INITIALIZED, True, public=True)
     if not no_backup:
         common.set_true_or_delete(_NAMESPACE, _NEEDS_BACKUP, needs_backup)
 
diff --git a/core/src1/main.py b/core/src1/main.py
index d53c22c0f..14c85bc8b 100644
--- a/core/src1/main.py
+++ b/core/src1/main.py
@@ -17,7 +17,7 @@ salt = None
 config.unlock(1, salt)
 storage.init_unlocked()
 storage.cache.start_session()
-print("is_initialized: ", storage.is_initialized())
+print("is_initialized: ", storage.device.is_initialized())
 print("version: ", storage.device.is_version_stored())
 print("version: ", storage.device.get_version())
 print("needs backup: ", storage.device.needs_backup())
diff --git a/core/tests/test_apps.webauthn.credential.py b/core/tests/test_apps.webauthn.credential.py
index 78085d5ba..70800099e 100644
--- a/core/tests/test_apps.webauthn.credential.py
+++ b/core/tests/test_apps.webauthn.credential.py
@@ -1,5 +1,6 @@
 from common import *
 import storage
+import storage.device
 from apps.common import mnemonic
 from apps.webauthn.credential import Fido2Credential, U2fCredential, NAME_MAX_LENGTH
 from apps.webauthn.fido2 import distinguishable_cred_list
@@ -11,7 +12,7 @@ class TestCredential(unittest.TestCase):
     def test_fido2_credential_decode(self):
         mnemonic_secret = b"all all all all all all all all all all all all"
         mnemonic.get_secret = lambda: mnemonic_secret
-        storage.is_initialized = lambda: True
+        storage.device.is_initialized = lambda: True
 
         cred_id = (
             b"f1d0020013e65c865634ad8abddf7a66df56ae7d8c3afd356f76426801508b2e"
diff --git a/tests/ui_tests/fixtures.json b/tests/ui_tests/fixtures.json
index 99eeb8fe0..3b28bc939 100644
--- a/tests/ui_tests/fixtures.json
+++ b/tests/ui_tests/fixtures.json
@@ -169,38 +169,38 @@
 "test_msg_recoverydevice_bip39_dryrun.py::test_seed_mismatch": "85c61f5304a32e8b84a37ef80d035cfdcbf89a8631bde53409b1ec7f1013740c",
 "test_msg_recoverydevice_bip39_dryrun.py::test_uninitialized": "14fcdd2ded299ca099a35966cc9f21204b31de8d6bab9ec91cb64537bd70440c",
 "test_msg_recoverydevice_bip39_t2.py::test_already_initialized": "5a80508a71a9ef64f94762b07636f90e464832f0f4a3102af8fa1a8c69e94586",
-"test_msg_recoverydevice_bip39_t2.py::test_tt_nopin_nopassphrase": "48e9e30277913b9c2a7a2bfcb51cadad20a888e31d08208e87ad1f5e90c0d807",
-"test_msg_recoverydevice_bip39_t2.py::test_tt_pin_passphrase": "f0106d33287cd438298c8b56b08cfc8593a442b90e9414c59af6a1cff8efbd5a",
-"test_msg_recoverydevice_slip39_advanced.py::test_abort": "793dde7fb47e9c4ad36369be396da20332560f29083d7f9a2b0582173371c9ed",
-"test_msg_recoverydevice_slip39_advanced.py::test_extra_share_entered": "00a94e20b786346c45f987860b2465f299075d7c6de4971f42a4749e1cc8bfc0",
-"test_msg_recoverydevice_slip39_advanced.py::test_group_threshold_reached": "3b075a276c4e0d53fbc51ce1f29594bbd474d25f47c0f6a32caac41ba0ba2138",
-"test_msg_recoverydevice_slip39_advanced.py::test_noabort": "d2d17674ec4bbfdc922570148281903abfd57f0354f21eae21079253fb301bf8",
-"test_msg_recoverydevice_slip39_advanced.py::test_same_share": "de288365352fc0676b94df3e2c78b28893b1821c505b36f9c1a28dc117af2954",
-"test_msg_recoverydevice_slip39_advanced.py::test_secret[shares0-c2d2e26ad06023c60145f150abe2dd2b]": "3a0803601280ca9eb72bccabc0328637ce4b7c20323ffcdde82341b09e170763",
-"test_msg_recoverydevice_slip39_advanced.py::test_secret[shares1-c41d5cf80fed71a008a3a0ae0458ff0c6d62": "147fe87091f2b1a1e2cca6bd96432273a2ee98fd73bcd0f8503c578c1d101e5b",
+"test_msg_recoverydevice_bip39_t2.py::test_tt_nopin_nopassphrase": "86e52bb95d0f53193cc83e828f6e6baea59ebcaa26e06784bbb4f6873ee442ac",
+"test_msg_recoverydevice_bip39_t2.py::test_tt_pin_passphrase": "7a7b9d20cc5b2d6fcdf0e35d90cfcd46bfe536067becdea5568fd7f3d102306f",
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