diff --git a/aries_cloudagent/wallet/askar.py b/aries_cloudagent/wallet/askar.py
index 1d08d528ff..69b5cb109e 100644
--- a/aries_cloudagent/wallet/askar.py
+++ b/aries_cloudagent/wallet/askar.py
@@ -258,6 +258,10 @@ async def create_local_did(
             verkey_bytes = keypair.get_public_bytes()
             verkey = bytes_to_b58(verkey_bytes)
 
+            did = did_validation.validate_or_derive_did(
+                method, key_type, verkey_bytes, did
+            )
+
             try:
                 await self._session.handle.insert_key(
                     verkey, keypair, metadata=json.dumps(metadata)
@@ -269,10 +273,6 @@ async def create_local_did(
                 else:
                     raise WalletError("Error inserting key") from err
 
-            did = did_validation.validate_or_derive_did(
-                method, key_type, verkey_bytes, did
-            )
-
             item = await self._session.handle.fetch(CATEGORY_DID, did, for_update=True)
             if item:
                 did_info = item.value_json