Nice work so far. Taking a blank and adding your own handles is a good way to start. As for the leather work, well if you are like me you will find yourself wishing you had done this or done that. That being said, your sheath looks good from what I can see.
Well heck, go ahead and make a traditional sheath for it too. That way you will have options and you will get to make another sheath. I have dabbled with Kydex and leather both and I have made more than one sheath or holster on a few different occasions. I would make what I thought was going to be a good design (at least on paper) but in reality - yeah, not so much.