diff --git a/Cargo.lock b/Cargo.lock
index 59b444c6..da50b677 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -1084,7 +1084,7 @@ dependencies = [
 [[package]]
 name = "ibc"
 version = "0.43.1"
-source = "git+https://github.com/cosmos/ibc-rs.git?rev=12317a0#12317a08bc46c7ee9fb65127c70351c70bb445b4"
+source = "git+https://github.com/cosmos/ibc-rs.git?rev=4a69b49#4a69b49411957c4e1f6432d0bf32d4eac45e9b15"
 dependencies = [
  "bytes",
  "derive_more",
@@ -1112,8 +1112,7 @@ dependencies = [
 [[package]]
 name = "ibc-derive"
 version = "0.2.0"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "2628857829b03dc5d434d116a0ed865e6634bad684368f466bd1a0431f49d0a6"
+source = "git+https://github.com/cosmos/ibc-rs.git?rev=4a69b49#4a69b49411957c4e1f6432d0bf32d4eac45e9b15"
 dependencies = [
  "darling",
  "proc-macro2",
@@ -3108,8 +3107,3 @@ dependencies = [
  "quote",
  "syn 2.0.28",
 ]
-
-[[patch.unused]]
-name = "ibc-proto"
-version = "0.32.0"
-source = "git+https://github.com/cosmos/ibc-proto-rs?rev=e8b6d0e9#e8b6d0e9a6669a01fca2b15106bd054adcc9f2bd"
diff --git a/Cargo.toml b/Cargo.toml
index a6e2458e..396f7256 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -26,7 +26,7 @@ cosmrs = "0.14.0"
 displaydoc = { version = "0.2", default-features = false }
 derive_more = { version = "0.99.17", default-features = false, features = ["from", "into", "display"] }
 ed25519 = { version = "2.1.0", default-features = false }
-ibc = { git = "https://github.com/cosmos/ibc-rs.git", rev= "12317a0" }
+ibc = { git = "https://github.com/cosmos/ibc-rs.git", rev= "4a69b49" }
 ibc-proto = { version = "0.32.1", default-features = false, features = ["server", "proto-descriptor"] }
 ics23 = { version = "0.10.1", default-features = false, features = ["host-functions"] }
 primitive-types = { version = "0.12.0", default-features = false, features = ["serde_no_std"] }
@@ -54,6 +54,3 @@ bytes = "1.0.1"
 lazy_static = "1.4.0"
 proptest = "*"
 rand = "*"
-
-[patch.crates-io]
-ibc-proto = { git = "https://github.com/cosmos/ibc-proto-rs", rev = "e8b6d0e9" }
diff --git a/src/modules/ibc/impls.rs b/src/modules/ibc/impls.rs
index b8a72dd3..d42431ce 100644
--- a/src/modules/ibc/impls.rs
+++ b/src/modules/ibc/impls.rs
@@ -98,7 +98,7 @@ where
     S: 'static + ProvableStore + Default + Debug,
 {
     pub fn new(store: SharedStore<S>, bank_keeper: BankBalanceKeeper<S>) -> Self {
-        let transfer_module = IbcTransferModule::new(store.clone(), bank_keeper);
+        let transfer_module = IbcTransferModule::new(bank_keeper);
         let router = IbcRouter::new(transfer_module);
 
         Self {
@@ -120,90 +120,6 @@ where
     }
 }
 
-/// The IBC module
-///
-/// Implements all IBC-rs validation and execution contexts and gRPC endpoints
-/// required by `hermes` as well.
-#[derive(Clone)]
-pub struct IbcContext<S>
-where
-    S: Store + Send + Sync + Debug,
-{
-    /// Handle to store instance.
-    /// The module is guaranteed exclusive access to all paths in the store key-space.
-    pub store: SharedStore<S>,
-    /// Counter for clients
-    client_counter: u64,
-    /// Counter for connections
-    conn_counter: u64,
-    /// Counter for channels
-    channel_counter: u64,
-    /// Tracks the processed time for client updates
-    client_processed_times: HashMap<(ClientId, IbcHeight), Timestamp>,
-    /// Tracks the processed height for client updates
-    client_processed_heights: HashMap<(ClientId, IbcHeight), IbcHeight>,
-    /// Map of host consensus states
-    consensus_states: HashMap<u64, TmConsensusState>,
-    /// A typed-store for AnyClientState
-    pub client_state_store: ProtobufStore<SharedStore<S>, ClientStatePath, TmClientState, Any>,
-    /// A typed-store for AnyConsensusState
-    pub consensus_state_store:
-        ProtobufStore<SharedStore<S>, ClientConsensusStatePath, TmConsensusState, Any>,
-    /// A typed-store for ConnectionEnd
-    connection_end_store:
-        ProtobufStore<SharedStore<S>, ConnectionPath, ConnectionEnd, RawConnectionEnd>,
-    /// A typed-store for ConnectionIds
-    connection_ids_store: JsonStore<SharedStore<S>, ClientConnectionPath, Vec<ConnectionId>>,
-    /// A typed-store for ChannelEnd
-    channel_end_store: ProtobufStore<SharedStore<S>, ChannelEndPath, ChannelEnd, RawChannelEnd>,
-    /// A typed-store for send sequences
-    send_sequence_store: JsonStore<SharedStore<S>, SeqSendPath, Sequence>,
-    /// A typed-store for receive sequences
-    recv_sequence_store: JsonStore<SharedStore<S>, SeqRecvPath, Sequence>,
-    /// A typed-store for ack sequences
-    ack_sequence_store: JsonStore<SharedStore<S>, SeqAckPath, Sequence>,
-    /// A typed-store for packet commitments
-    packet_commitment_store: BinStore<SharedStore<S>, CommitmentPath, PacketCommitment>,
-    /// A typed-store for packet receipts
-    packet_receipt_store: TypedSet<SharedStore<S>, ReceiptPath>,
-    /// A typed-store for packet ack
-    packet_ack_store: BinStore<SharedStore<S>, AckPath, AcknowledgementCommitment>,
-    /// IBC Events
-    pub(crate) events: Vec<IbcEvent>,
-    /// message logs
-    logs: Vec<String>,
-}
-
-impl<S> IbcContext<S>
-where
-    S: 'static + ProvableStore + Default + Debug,
-{
-    pub fn new(store: SharedStore<S>) -> Self {
-        Self {
-            client_counter: 0,
-            conn_counter: 0,
-            channel_counter: 0,
-            client_processed_times: Default::default(),
-            client_processed_heights: Default::default(),
-            consensus_states: Default::default(),
-            client_state_store: TypedStore::new(store.clone()),
-            consensus_state_store: TypedStore::new(store.clone()),
-            connection_end_store: TypedStore::new(store.clone()),
-            connection_ids_store: TypedStore::new(store.clone()),
-            channel_end_store: TypedStore::new(store.clone()),
-            send_sequence_store: TypedStore::new(store.clone()),
-            recv_sequence_store: TypedStore::new(store.clone()),
-            ack_sequence_store: TypedStore::new(store.clone()),
-            packet_commitment_store: TypedStore::new(store.clone()),
-            packet_receipt_store: TypedStore::new(store.clone()),
-            packet_ack_store: TypedStore::new(store.clone()),
-            store,
-            events: Vec::new(),
-            logs: Vec::new(),
-        }
-    }
-}
-
 impl<S> Ibc<S>
 where
     S: ProvableStore + Debug,
@@ -246,8 +162,10 @@ where
                 .get_transfer_module_mut()
                 .expect("Failed to get the transfer module");
 
-            send_transfer(transfer_module, transfer_msg).map_err(|e| AppError::Custom {
-                reason: e.to_string(),
+            send_transfer(&mut self.ctx, transfer_module, transfer_msg).map_err(|e| {
+                AppError::Custom {
+                    reason: e.to_string(),
+                }
             })?;
 
             Ok(transfer_module
@@ -328,6 +246,90 @@ where
     }
 }
 
+/// The IBC module
+///
+/// Implements all IBC-rs validation and execution contexts and gRPC endpoints
+/// required by `hermes` as well.
+#[derive(Clone)]
+pub struct IbcContext<S>
+where
+    S: Store + Send + Sync + Debug,
+{
+    /// Handle to store instance.
+    /// The module is guaranteed exclusive access to all paths in the store key-space.
+    pub store: SharedStore<S>,
+    /// Counter for clients
+    client_counter: u64,
+    /// Counter for connections
+    conn_counter: u64,
+    /// Counter for channels
+    channel_counter: u64,
+    /// Tracks the processed time for client updates
+    client_processed_times: HashMap<(ClientId, IbcHeight), Timestamp>,
+    /// Tracks the processed height for client updates
+    client_processed_heights: HashMap<(ClientId, IbcHeight), IbcHeight>,
+    /// Map of host consensus states
+    consensus_states: HashMap<u64, TmConsensusState>,
+    /// A typed-store for AnyClientState
+    pub client_state_store: ProtobufStore<SharedStore<S>, ClientStatePath, TmClientState, Any>,
+    /// A typed-store for AnyConsensusState
+    pub consensus_state_store:
+        ProtobufStore<SharedStore<S>, ClientConsensusStatePath, TmConsensusState, Any>,
+    /// A typed-store for ConnectionEnd
+    connection_end_store:
+        ProtobufStore<SharedStore<S>, ConnectionPath, ConnectionEnd, RawConnectionEnd>,
+    /// A typed-store for ConnectionIds
+    connection_ids_store: JsonStore<SharedStore<S>, ClientConnectionPath, Vec<ConnectionId>>,
+    /// A typed-store for ChannelEnd
+    channel_end_store: ProtobufStore<SharedStore<S>, ChannelEndPath, ChannelEnd, RawChannelEnd>,
+    /// A typed-store for send sequences
+    send_sequence_store: JsonStore<SharedStore<S>, SeqSendPath, Sequence>,
+    /// A typed-store for receive sequences
+    recv_sequence_store: JsonStore<SharedStore<S>, SeqRecvPath, Sequence>,
+    /// A typed-store for ack sequences
+    ack_sequence_store: JsonStore<SharedStore<S>, SeqAckPath, Sequence>,
+    /// A typed-store for packet commitments
+    packet_commitment_store: BinStore<SharedStore<S>, CommitmentPath, PacketCommitment>,
+    /// A typed-store for packet receipts
+    packet_receipt_store: TypedSet<SharedStore<S>, ReceiptPath>,
+    /// A typed-store for packet ack
+    packet_ack_store: BinStore<SharedStore<S>, AckPath, AcknowledgementCommitment>,
+    /// IBC Events
+    pub(crate) events: Vec<IbcEvent>,
+    /// message logs
+    logs: Vec<String>,
+}
+
+impl<S> IbcContext<S>
+where
+    S: 'static + ProvableStore + Default + Debug,
+{
+    pub fn new(store: SharedStore<S>) -> Self {
+        Self {
+            client_counter: 0,
+            conn_counter: 0,
+            channel_counter: 0,
+            client_processed_times: Default::default(),
+            client_processed_heights: Default::default(),
+            consensus_states: Default::default(),
+            client_state_store: TypedStore::new(store.clone()),
+            consensus_state_store: TypedStore::new(store.clone()),
+            connection_end_store: TypedStore::new(store.clone()),
+            connection_ids_store: TypedStore::new(store.clone()),
+            channel_end_store: TypedStore::new(store.clone()),
+            send_sequence_store: TypedStore::new(store.clone()),
+            recv_sequence_store: TypedStore::new(store.clone()),
+            ack_sequence_store: TypedStore::new(store.clone()),
+            packet_commitment_store: TypedStore::new(store.clone()),
+            packet_receipt_store: TypedStore::new(store.clone()),
+            packet_ack_store: TypedStore::new(store.clone()),
+            store,
+            events: Vec::new(),
+            logs: Vec::new(),
+        }
+    }
+}
+
 pub(crate) struct TmEvent(pub TendermintEvent);
 
 impl From<TmEvent> for Event {
diff --git a/src/modules/ibc/router.rs b/src/modules/ibc/router.rs
index c379aa3e..ddb336b6 100644
--- a/src/modules/ibc/router.rs
+++ b/src/modules/ibc/router.rs
@@ -19,7 +19,7 @@ pub struct IbcRouter<S>
 where
     S: Store + Send + Sync + Debug,
 {
-    transfer: Arc<IbcTransferModule<S, BankBalanceKeeper<S>>>,
+    transfer: Arc<IbcTransferModule<BankBalanceKeeper<S>>>,
 
     /// Mapping of which IBC modules own which port
     port_to_module_map: BTreeMap<PortId, ModuleId>,
@@ -29,7 +29,7 @@ impl<S> IbcRouter<S>
 where
     S: 'static + Store + Send + Sync + Debug,
 {
-    pub fn new(transfer: IbcTransferModule<S, BankBalanceKeeper<S>>) -> Self {
+    pub fn new(transfer: IbcTransferModule<BankBalanceKeeper<S>>) -> Self {
         let mut port_to_module_map = BTreeMap::default();
         let transfer_module_id: ModuleId = ModuleId::new(IBC_TRANSFER_MODULE_ID.to_string());
         port_to_module_map.insert(PortId::transfer(), transfer_module_id);
@@ -42,7 +42,7 @@ where
 
     pub fn get_transfer_module_mut(
         &mut self,
-    ) -> Option<&mut IbcTransferModule<S, BankBalanceKeeper<S>>> {
+    ) -> Option<&mut IbcTransferModule<BankBalanceKeeper<S>>> {
         match Arc::get_mut(&mut self.transfer) {
             Some(m) => Some(m),
             None => None,
diff --git a/src/modules/ibc/transfer.rs b/src/modules/ibc/transfer.rs
index 1aeee067..d7a05705 100644
--- a/src/modules/ibc/transfer.rs
+++ b/src/modules/ibc/transfer.rs
@@ -1,17 +1,11 @@
-use crate::{
-    helper::Height,
-    modules::{
-        auth::account::ACCOUNT_PREFIX,
-        bank::context::BankKeeper,
-        bank::util::{Coin, Denom},
-    },
-    store::{
-        SharedStore, Store, {BinStore, JsonStore, ProtobufStore, TypedStore},
-    },
+use crate::modules::{
+    auth::account::ACCOUNT_PREFIX,
+    bank::context::BankKeeper,
+    bank::util::{Coin, Denom},
 };
 use core::fmt::Debug;
 use cosmrs::AccountId;
-use ibc::{applications::transfer::VERSION, core::ics24_host::path::SeqSendPath};
+use ibc::applications::transfer::VERSION;
 use ibc::{
     applications::transfer::{
         context::{
@@ -21,32 +15,16 @@ use ibc::{
         error::TokenTransferError,
         PrefixedCoin,
     },
-    clients::ics07_tendermint::{
-        client_state::ClientState as TmClientState,
-        consensus_state::ConsensusState as TmConsensusState,
-    },
     core::{
-        ics02_client::error::ClientError,
-        ics03_connection::{connection::ConnectionEnd, error::ConnectionError},
         ics04_channel::{
-            channel::{ChannelEnd, Counterparty, Order},
-            commitment::PacketCommitment,
-            context::{SendPacketExecutionContext, SendPacketValidationContext},
+            channel::{Counterparty, Order},
             error::{ChannelError, PacketError},
-            packet::{Packet, Sequence},
+            packet::Packet,
             Version as ChannelVersion,
         },
-        ics24_host::{
-            identifier::{ChannelId, ClientId, ConnectionId},
-            path::{
-                ChannelEndPath, ClientConsensusStatePath, ClientStatePath, CommitmentPath,
-                ConnectionPath,
-            },
-        },
+        ics24_host::identifier::{ChannelId, ConnectionId},
         router::{Module as IbcModule, ModuleExtras},
-        ContextError,
     },
-    Height as IbcHeight,
 };
 use ibc::{
     core::{
@@ -55,12 +33,6 @@ use ibc::{
     },
     Signer,
 };
-use ibc_proto::{
-    google::protobuf::Any,
-    ibc::core::{
-        channel::v1::Channel as RawChannelEnd, connection::v1::ConnectionEnd as RawConnectionEnd,
-    },
-};
 
 use ibc::applications::transfer::context::{
     on_acknowledgement_packet_validate, on_chan_open_ack_validate, on_chan_open_confirm_validate,
@@ -69,59 +41,31 @@ use ibc::applications::transfer::context::{
     on_timeout_packet_validate,
 };
 
-use super::impls::{AnyConsensusState, IbcContext};
-
 #[derive(Clone, Debug)]
-pub struct IbcTransferModule<S, BK>
+pub struct IbcTransferModule<BK>
 where
-    S: Send + Sync,
     BK: Send + Sync,
 {
     /// A bank keeper to enable sending, minting and burning of tokens
     bank_keeper: BK,
-    /// A typed-store for AnyClientState
-    client_state_store: ProtobufStore<SharedStore<S>, ClientStatePath, TmClientState, Any>,
-    /// A typed-store for AnyConsensusState
-    consensus_state_store:
-        ProtobufStore<SharedStore<S>, ClientConsensusStatePath, TmConsensusState, Any>,
-    /// A typed-store for ConnectionEnd
-    connection_end_store:
-        ProtobufStore<SharedStore<S>, ConnectionPath, ConnectionEnd, RawConnectionEnd>,
-    /// A typed-store for ChannelEnd
-    channel_end_store: ProtobufStore<SharedStore<S>, ChannelEndPath, ChannelEnd, RawChannelEnd>,
-    /// A typed-store for send sequences
-    send_sequence_store: JsonStore<SharedStore<S>, SeqSendPath, Sequence>,
-    /// A typed-store for packet commitments
-    packet_commitment_store: BinStore<SharedStore<S>, CommitmentPath, PacketCommitment>,
 
     pub events: Vec<IbcEvent>,
-
-    log: Vec<String>,
 }
 
-impl<S, BK> IbcTransferModule<S, BK>
+impl<BK> IbcTransferModule<BK>
 where
-    S: 'static + Store,
     BK: 'static + Send + Sync + BankKeeper<Coin = Coin>,
 {
-    pub fn new(store: SharedStore<S>, bank_keeper: BK) -> Self {
+    pub fn new(bank_keeper: BK) -> Self {
         Self {
             bank_keeper,
-            client_state_store: TypedStore::new(store.clone()),
-            consensus_state_store: TypedStore::new(store.clone()),
-            connection_end_store: TypedStore::new(store.clone()),
-            channel_end_store: TypedStore::new(store.clone()),
-            send_sequence_store: TypedStore::new(store.clone()),
-            packet_commitment_store: TypedStore::new(store),
             events: Vec::new(),
-            log: Vec::new(),
         }
     }
 }
 
-impl<S, BK> IbcModule for IbcTransferModule<S, BK>
+impl<BK> IbcModule for IbcTransferModule<BK>
 where
-    S: Store + Debug + 'static,
     BK: 'static + Send + Sync + Debug + BankKeeper<Coin = Coin>,
     Self: Send + Sync,
 {
@@ -353,9 +297,8 @@ where
     }
 }
 
-impl<S, BK> TokenTransferExecutionContext for IbcTransferModule<S, BK>
+impl<BK> TokenTransferExecutionContext for IbcTransferModule<BK>
 where
-    S: Store + Send + Sync + Debug + 'static,
     BK: BankKeeper<Coin = Coin> + Send + Sync,
 {
     fn send_coins_execute(
@@ -415,9 +358,8 @@ where
     }
 }
 
-impl<S, BK> TokenTransferValidationContext for IbcTransferModule<S, BK>
+impl<BK> TokenTransferValidationContext for IbcTransferModule<BK>
 where
-    S: Store + Send + Sync + Debug + 'static,
     BK: BankKeeper<Coin = Coin> + Send + Sync,
 {
     type AccountId = Signer;
@@ -485,108 +427,3 @@ where
         Ok(())
     }
 }
-
-impl<S, BK> SendPacketValidationContext for IbcTransferModule<S, BK>
-where
-    S: Store + Send + Sync + Debug + 'static,
-    BK: Send + Sync,
-{
-    type ClientValidationContext = IbcContext<S>;
-    type E = IbcContext<S>;
-    type AnyConsensusState = AnyConsensusState;
-    type AnyClientState = TmClientState;
-
-    fn channel_end(&self, channel_end_path: &ChannelEndPath) -> Result<ChannelEnd, ContextError> {
-        self.channel_end_store
-            .get(Height::Pending, channel_end_path)
-            .ok_or(ContextError::ChannelError(ChannelError::ChannelNotFound {
-                port_id: channel_end_path.0.clone(),
-                channel_id: channel_end_path.1.clone(),
-            }))
-    }
-
-    fn connection_end(&self, connection_id: &ConnectionId) -> Result<ConnectionEnd, ContextError> {
-        self.connection_end_store
-            .get(Height::Pending, &ConnectionPath::new(connection_id))
-            .ok_or(ContextError::ConnectionError(
-                ConnectionError::ConnectionNotFound {
-                    connection_id: connection_id.clone(),
-                },
-            ))
-    }
-
-    fn client_state(&self, client_id: &ClientId) -> Result<Self::AnyClientState, ContextError> {
-        self.client_state_store
-            .get(Height::Pending, &ClientStatePath::new(client_id))
-            .ok_or(ContextError::ClientError(
-                ClientError::ClientStateNotFound {
-                    client_id: client_id.clone(),
-                },
-            ))
-    }
-
-    fn client_consensus_state(
-        &self,
-        client_cons_state_path: &ClientConsensusStatePath,
-    ) -> Result<Self::AnyConsensusState, ContextError> {
-        let height = IbcHeight::new(client_cons_state_path.epoch, client_cons_state_path.height)
-            .map_err(|_| ContextError::ClientError(ClientError::InvalidHeight))?;
-        self.consensus_state_store
-            .get(Height::Pending, client_cons_state_path)
-            .ok_or(ContextError::ClientError(
-                ClientError::ConsensusStateNotFound {
-                    client_id: client_cons_state_path.client_id.clone(),
-                    height,
-                },
-            ))
-            .map(|cs| cs.into())
-    }
-
-    fn get_next_sequence_send(
-        &self,
-        seq_send_path: &SeqSendPath,
-    ) -> Result<Sequence, ContextError> {
-        self.send_sequence_store
-            .get(Height::Pending, seq_send_path)
-            .ok_or(ContextError::PacketError(PacketError::MissingNextSendSeq {
-                port_id: seq_send_path.0.clone(),
-                channel_id: seq_send_path.1.clone(),
-            }))
-    }
-}
-
-impl<S, BK> SendPacketExecutionContext for IbcTransferModule<S, BK>
-where
-    S: Store + Send + Sync + Debug + 'static,
-    BK: BankKeeper<Coin = Coin> + Send + Sync,
-{
-    fn store_packet_commitment(
-        &mut self,
-        commitment_path: &CommitmentPath,
-        commitment: PacketCommitment,
-    ) -> Result<(), ContextError> {
-        self.packet_commitment_store
-            .set(commitment_path.clone(), commitment)
-            .map_err(|_| PacketError::ImplementationSpecific)?;
-        Ok(())
-    }
-
-    fn store_next_sequence_send(
-        &mut self,
-        seq_send_path: &SeqSendPath,
-        seq: Sequence,
-    ) -> Result<(), ContextError> {
-        self.send_sequence_store
-            .set(seq_send_path.clone(), seq)
-            .map_err(|_| PacketError::ImplementationSpecific)?;
-        Ok(())
-    }
-
-    fn emit_ibc_event(&mut self, event: IbcEvent) {
-        self.events.push(event)
-    }
-
-    fn log_message(&mut self, message: String) {
-        self.log.push(message)
-    }
-}