diff --git a/app/controllers/lti/ims/authorization_controller.rb b/app/controllers/lti/ims/authorization_controller.rb
index 68262e7c486..e01c7423086 100644
--- a/app/controllers/lti/ims/authorization_controller.rb
+++ b/app/controllers/lti/ims/authorization_controller.rb
@@ -78,9 +78,9 @@ module Lti
         raise InvalidGrant if params[:grant_type] != JWT_GRANT_TYPE
         raise InvalidGrant if params[:assertion].blank?
         jwt_validator = Lti::Oauth2::AuthorizationValidator.new(jwt: params[:assertion], authorization_url: lti_oauth2_authorize_url)
-        jwt_validator.jwt
+        jwt_validator.validate!
         render json: {
-          access_token: SecureRandom.uuid,
+          access_token: Lti::Oauth2::AccessToken.create_jwt(aud: request.host, sub: jwt_validator.tool_proxy.guid).to_s,
           token_type: 'bearer',
           expires_in: Setting.get('lti.oauth2.access_token.expiration', 1.hour.to_s)
         }
diff --git a/lib/canvas/security.rb b/lib/canvas/security.rb
index cf216cf5d0a..fbf6d562899 100644
--- a/lib/canvas/security.rb
+++ b/lib/canvas/security.rb
@@ -326,7 +326,7 @@ module Canvas::Security
 
       if body[:nbf].present?
         if timestamp_is_future?(body[:nbf])
-          raise Canvas::Security::TokenInvalid
+          raise Canvas::Security::InvalidToken
         end
       end
     end
diff --git a/lib/lti/oauth2/access_token.rb b/lib/lti/oauth2/access_token.rb
new file mode 100644
index 00000000000..b3d7a0a176f
--- /dev/null
+++ b/lib/lti/oauth2/access_token.rb
@@ -0,0 +1,78 @@
+module Lti
+  module Oauth2
+    class AccessToken
+      private_class_method :new
+
+      ISS = 'Canvas'.freeze
+
+      attr_reader :aud, :sub
+
+      def self.create_jwt(aud:, sub:)
+        new(aud: aud, sub: sub)
+      end
+
+      def self.from_jwt(aud:, jwt:)
+        decoded_jwt = Canvas::Security.decode_jwt(jwt)
+        new(aud: aud, sub: decoded_jwt[:sub], jwt: jwt)
+      rescue Canvas::Security::TokenExpired => e
+        raise InvalidTokenError, 'token has expired', e.backtrace
+      rescue StandardError => e
+        raise InvalidTokenError, e
+      end
+
+      def initialize(aud:, sub:, jwt: nil)
+        @_jwt = jwt if jwt
+        @aud = aud
+        @sub = sub
+      end
+
+      def validate!
+        decoded_jwt = Canvas::Security.decode_jwt(jwt)
+        check_required_assertions(decoded_jwt.keys)
+        raise InvalidTokenError, 'invalid iss' if decoded_jwt['iss'] != ISS
+        raise InvalidTokenError, 'invalid aud' if decoded_jwt[:aud] != aud
+        raise InvalidTokenError, 'iat must be in the past' unless Time.zone.at(decoded_jwt['iat']) < Time.zone.now
+        true
+      rescue InvalidTokenError
+        raise
+      rescue Canvas::Security::TokenExpired => e
+        raise InvalidTokenError, 'token has expired', e.backtrace
+      rescue StandardError => e
+        raise InvalidTokenError, e
+      end
+
+      def to_s
+        jwt
+      end
+
+      private
+
+      def decoded_jwt
+        @_decoded_jwt ||= Canvas::Security.decode_jwt(jwt)
+      end
+
+      def jwt
+        @_jwt ||= begin
+          body = {
+            iss: ISS,
+            sub: sub,
+            exp: Setting.get('lti.oauth2.access_token.exp', 1.hour).to_i.seconds.from_now,
+            aud: aud,
+            iat: Time.zone.now.to_i,
+            nbf: Setting.get('lti.oauth2.access_token.nbf', 30.seconds).to_i.seconds.ago,
+            jti: SecureRandom.uuid
+          }
+          Canvas::Security.create_jwt(body)
+        end
+      end
+
+      def check_required_assertions(assertion_keys)
+        missing_assertions = (%w(iss sub exp aud iat nbf jti) - assertion_keys)
+        if missing_assertions.present?
+          raise InvalidTokenError, "the following assertions are missing: #{missing_assertions.join(',')}"
+        end
+      end
+
+    end
+  end
+end
diff --git a/lib/lti/oauth2/authorization_validator.rb b/lib/lti/oauth2/authorization_validator.rb
index 95f3ec61930..012565666de 100644
--- a/lib/lti/oauth2/authorization_validator.rb
+++ b/lib/lti/oauth2/authorization_validator.rb
@@ -38,6 +38,7 @@ module Lti
           validated_jwt
         end
       end
+      alias_method :validate!, :jwt
 
       def tool_proxy
         @_tool_proxy ||= begin
diff --git a/lib/lti/oauth2/invalid_token_error.rb b/lib/lti/oauth2/invalid_token_error.rb
new file mode 100644
index 00000000000..f2356414069
--- /dev/null
+++ b/lib/lti/oauth2/invalid_token_error.rb
@@ -0,0 +1,4 @@
+module Lti::Oauth2
+  class InvalidTokenError < StandardError
+  end
+end
diff --git a/spec/apis/lti/ims/authorization_api_spec.rb b/spec/apis/lti/ims/authorization_api_spec.rb
index a9d6426fb6e..924b18c1239 100644
--- a/spec/apis/lti/ims/authorization_api_spec.rb
+++ b/spec/apis/lti/ims/authorization_api_spec.rb
@@ -77,7 +77,8 @@ module Lti
 
         it 'returns an access_token' do
           post auth_endpoint, params
-          expect(JSON.parse(response.body)['access_token']).not_to be_nil
+          access_token = Lti::Oauth2::AccessToken.create_jwt(aud: @request.host, sub: tool_proxy.guid)
+          expect{access_token.validate!}.not_to raise_error
         end
 
         it "allows the use of the 'OAuth.splitSecret'" do
diff --git a/spec/lib/lti/oauth2/access_token_spec.rb b/spec/lib/lti/oauth2/access_token_spec.rb
new file mode 100644
index 00000000000..6dc3027bb2b
--- /dev/null
+++ b/spec/lib/lti/oauth2/access_token_spec.rb
@@ -0,0 +1,134 @@
+require File.expand_path(File.dirname(__FILE__) + '/../../../spec_helper')
+require 'json/jwt'
+
+module Lti
+  module Oauth2
+    describe AccessToken do
+
+      let(:aud){'http://example.com'}
+      let(:sub) {'12084434-0c58-4058-b8c0-4af2da9c2ef8'}
+      let(:body) do
+        {
+          iss: 'Canvas',
+          sub: sub,
+          exp: 5.minutes.from_now.to_i,
+          aud: aud,
+          iat: Time.zone.now.to_i,
+          nbf: 30.seconds.ago,
+          jti: '34084434-0c58-405a-b8c0-4af2da9c2efd'
+        }
+      end
+
+      describe "#to_s" do
+        let(:access_token) {Lti::Oauth2::AccessToken.create_jwt(aud: aud, sub: sub)}
+
+        it "is signed by the canvas secret" do
+          expect{Canvas::Security.decode_jwt(access_token.to_s)}.to_not raise_error
+        end
+
+        it "has an 'iss' set to 'Canvas'" do
+          expect(Canvas::Security.decode_jwt(access_token.to_s)['iss']).to eq('Canvas')
+        end
+
+        it "has an 'aud' set to the current domain" do
+          expect(Canvas::Security.decode_jwt(access_token.to_s)['aud']).to eq aud
+        end
+
+        it "has an 'exp' that is derived from the settings" do
+          Timecop.freeze do
+            Setting.set('lti.oauth2.access_token.exp', 2.hours)
+            expect(Canvas::Security.decode_jwt(access_token.to_s)['exp']).to eq 2.hours.from_now.to_i
+          end
+        end
+
+        it "has a default 'exp' of 1 hour" do
+          Timecop.freeze do
+            expect(Canvas::Security.decode_jwt(access_token.to_s)['exp']).to eq 1.hours.from_now.to_i
+          end
+        end
+
+        it "has an 'iat' set to the current time" do
+          Timecop.freeze do
+            expect(Canvas::Security.decode_jwt(access_token.to_s)['iat']).to eq Time.zone.now.to_i
+          end
+        end
+
+        it "has a 'nbf' derived from the settings" do
+          Timecop.freeze do
+            Setting.set('lti.oauth2.access_token.nbf', 2.minutes)
+            expect(Canvas::Security.decode_jwt(access_token.to_s)['nbf']).to eq 2.minutes.ago.to_i
+          end
+        end
+
+        it "has a default 'nbf' 30 seconds ago" do
+          Timecop.freeze do
+            expect(Canvas::Security.decode_jwt(access_token.to_s)['nbf']).to eq 30.seconds.ago.to_i
+          end
+        end
+
+        it "has a 'jti' that is uniquely generated" do
+          jti_1 = Canvas::Security.decode_jwt(access_token.to_s)['jti']
+          jti_2 = Canvas::Security.decode_jwt(AccessToken.create_jwt(aud: aud, sub: sub).to_s)['jti']
+          expect(jti_1).not_to eq jti_2
+        end
+
+        it "memoizes the jwt" do
+          expect(access_token.to_s).to eq access_token.to_s
+        end
+
+        it "has a 'sub' that is set to the ToolProxy guid" do
+          expect(Canvas::Security.decode_jwt(access_token.to_s)['sub']).to eq sub
+        end
+
+      end
+
+      describe ".from_jwt" do
+        it "raises an InvalidTokenError if not signed by the correct secret" do
+          invalid_token = Canvas::Security.create_jwt(body, nil, 'invalid')
+          expect{ Lti::Oauth2::AccessToken.from_jwt(aud: aud, jwt: invalid_token)}.to raise_error InvalidTokenError
+        end
+      end
+
+      describe "#validate!" do
+        let(:token) {Canvas::Security.create_jwt(body)}
+        let(:access_token) {Lti::Oauth2::AccessToken.from_jwt(aud: aud, jwt: token)}
+
+        it "returns true if there are no errors" do
+          expect(access_token.validate!).to eq true
+        end
+
+        it "raises InvalidTokenError if any of the assertions are missing" do
+          body.delete :jti
+          expect { access_token.validate! }.to raise_error InvalidTokenError, "the following assertions are missing: jti"
+        end
+
+        it "raises an InvalidTokenError if 'iss' is not 'Canvas'" do
+          body[:iss] = 'invalid iss'
+          expect{ access_token.validate! }.to raise_error InvalidTokenError, 'invalid iss'
+        end
+
+        it "raises an InvalidTokenError if the 'exp' is in the past" do
+          body[:exp] = 1.hour.ago
+          expect{ access_token.validate! }.to raise_error InvalidTokenError, 'token has expired'
+        end
+
+        it "raises an InvalidTokenError if the 'aud' is different than the passed in 'aud'" do
+          body[:aud] = 'invalid aud'
+          expect{ access_token.validate! }.to raise_error InvalidTokenError, 'invalid aud'
+        end
+
+        it "raises an InvalidTokenError if the 'iat' is in the future" do
+          body[:iat] = 1.hour.from_now
+          expect{ access_token.validate! }.to raise_error InvalidTokenError, 'iat must be in the past'
+        end
+
+        it "raises an InvalidTokenError if the 'nbf' is in the future" do
+          body[:nbf] = 1.hour.from_now
+          expect{ access_token.validate! }.to raise_error InvalidTokenError
+        end
+
+      end
+
+    end
+  end
+end