diff --git a/modules/light-clients/08-wasm/Dockerfile b/modules/light-clients/08-wasm/Dockerfile
index 2877f026ef3..4c6055eb20c 100644
--- a/modules/light-clients/08-wasm/Dockerfile
+++ b/modules/light-clients/08-wasm/Dockerfile
@@ -1,4 +1,4 @@
-FROM golang:1.23.4-alpine as builder
+FROM golang:1.23.4-alpine as builder-base
 
 ARG LIBWASM_VERSION
 ARG TARGETARCH
@@ -23,12 +23,12 @@ RUN go mod download
 
 # Since it is not easy to fully cache a RUN script download of libwasmvm, we use two different stages
 # and copy the correct file in the final stage. The multistage setup also helps speed up the build process
-FROM alpine:3.18 AS amd64-stage
+FROM alpine:3.21 AS amd64-stage
 ARG LIBWASM_VERSION
 ADD https://github.com/CosmWasm/wasmvm/releases/download/${LIBWASM_VERSION}/libwasmvm_muslc.x86_64.a /lib/libwasmvm_muslc.x86_64.a
 
 
-FROM alpine:3.18 AS arm64-stage
+FROM alpine:3.21 AS arm64-stage
 ARG LIBWASM_VERSION
 ADD https://github.com/CosmWasm/wasmvm/releases/download/${LIBWASM_VERSION}/libwasmvm_muslc.aarch64.a /lib/libwasmvm_muslc.aarch64.a
 
@@ -44,6 +44,6 @@ COPY --from=libwasm-stage /lib/libwasmvm_muslc.* /lib/
 RUN go build -mod=readonly -tags "netgo ledger muslc" -ldflags '-X github.com/cosmos/cosmos-sdk/version.Name=sim -X github.com/cosmos/cosmos-sdk/version.AppName=simd -X github.com/cosmos/cosmos-sdk/version.Version= -X github.com/cosmos/cosmos-sdk/version.Commit= -X "github.com/cosmos/cosmos-sdk/version.BuildTags=netgo ledger muslc," -w -s -linkmode=external -extldflags "-Wl,-z,muldefs -static"' -trimpath -o /go/build/ ./...
 
 
-FROM alpine:3.18
+FROM alpine:3.21
 COPY --from=builder /go/build/simd /bin/simd
 ENTRYPOINT ["simd"]
diff --git a/modules/light-clients/08-wasm/testing/simapp/app.go b/modules/light-clients/08-wasm/testing/simapp/app.go
index f8d27ad0ce9..6b025bea332 100644
--- a/modules/light-clients/08-wasm/testing/simapp/app.go
+++ b/modules/light-clients/08-wasm/testing/simapp/app.go
@@ -110,6 +110,7 @@ import (
 	cmtproto "github.com/cometbft/cometbft/api/cometbft/types/v1"
 	cmtcrypto "github.com/cometbft/cometbft/crypto"
 	cmted25519 "github.com/cometbft/cometbft/crypto/ed25519"
+	cmttypes "github.com/cometbft/cometbft/types"
 
 	wasm "github.com/cosmos/ibc-go/modules/light-clients/08-wasm"
 	wasmkeeper "github.com/cosmos/ibc-go/modules/light-clients/08-wasm/keeper"
@@ -977,6 +978,17 @@ func (app *SimApp) InitChainer(ctx sdk.Context, req *abci.InitChainRequest) (*ab
 	if err := app.UpgradeKeeper.SetModuleVersionMap(ctx, app.ModuleManager.GetVersionMap()); err != nil {
 		panic(err)
 	}
+
+	paramsProto, err := app.ConsensusParamsKeeper.ParamsStore.Get(ctx)
+	if err != nil {
+		return nil, err
+	}
+	consensusParams := cmttypes.ConsensusParamsFromProto(paramsProto)
+	consensusParams.Block.MaxGas = 75_000_000 // The same as Cosmos Hub at the moment
+	if err := app.ConsensusParamsKeeper.ParamsStore.Set(ctx, consensusParams.ToProto()); err != nil {
+		return nil, err
+	}
+
 	return app.ModuleManager.InitGenesis(ctx, genesisState)
 }
 
diff --git a/modules/light-clients/08-wasm/testing/simapp/simd/cmd/root.go b/modules/light-clients/08-wasm/testing/simapp/simd/cmd/root.go
index ba5303918c0..05f070929ed 100644
--- a/modules/light-clients/08-wasm/testing/simapp/simd/cmd/root.go
+++ b/modules/light-clients/08-wasm/testing/simapp/simd/cmd/root.go
@@ -16,6 +16,7 @@ import (
 	corestore "cosmossdk.io/core/store"
 	"cosmossdk.io/log"
 	confixcmd "cosmossdk.io/tools/confix/cmd"
+	txsigning "cosmossdk.io/x/tx/signing"
 
 	"github.com/cosmos/cosmos-sdk/client"
 	"github.com/cosmos/cosmos-sdk/client/config"
@@ -27,6 +28,7 @@ import (
 	"github.com/cosmos/cosmos-sdk/client/rpc"
 	"github.com/cosmos/cosmos-sdk/client/snapshot"
 	"github.com/cosmos/cosmos-sdk/codec"
+	addresscodec "github.com/cosmos/cosmos-sdk/codec/address"
 	"github.com/cosmos/cosmos-sdk/server"
 	serverconfig "github.com/cosmos/cosmos-sdk/server/config"
 	servertypes "github.com/cosmos/cosmos-sdk/server/types"
@@ -64,11 +66,17 @@ func NewRootCmd() *cobra.Command {
 	initClientCtx := client.Context{}.
 		WithCodec(encodingConfig.Codec).
 		WithInterfaceRegistry(encodingConfig.InterfaceRegistry).
+		WithTxConfig(encodingConfig.TxConfig).
 		WithLegacyAmino(encodingConfig.Amino).
 		WithInput(os.Stdin).
 		WithAccountRetriever(types.AccountRetriever{}).
+		WithAddressCodec(addresscodec.NewBech32Codec(sdk.GetConfig().GetBech32AccountAddrPrefix())).
+		WithValidatorAddressCodec(addresscodec.NewBech32Codec(sdk.GetConfig().GetBech32ValidatorAddrPrefix())).
+		WithConsensusAddressCodec(addresscodec.NewBech32Codec(sdk.GetConfig().GetBech32ConsensusAddrPrefix())).
 		WithHomeDir(simapp.DefaultNodeHome).
-		WithViper("") // In simapp, we don't use any prefix for env variables.
+		WithViper(""). // uses by default the binary name as prefix
+		WithAddressPrefix(sdk.GetConfig().GetBech32AccountAddrPrefix()).
+		WithValidatorPrefix(sdk.GetConfig().GetBech32ValidatorAddrPrefix())
 
 	rootCmd := &cobra.Command{
 		Use:           "simd",
@@ -96,6 +104,10 @@ func NewRootCmd() *cobra.Command {
 			txConfigOpts := tx.ConfigOptions{
 				EnabledSignModes:           enabledSignModes,
 				TextualCoinMetadataQueryFn: txmodule.NewGRPCCoinMetadataQueryFn(initClientCtx),
+				SigningOptions: &txsigning.Options{
+					AddressCodec:          initClientCtx.InterfaceRegistry.SigningContext().AddressCodec(),
+					ValidatorAddressCodec: initClientCtx.InterfaceRegistry.SigningContext().ValidatorAddressCodec(),
+				},
 			}
 			txConfigWithTextual, err := tx.NewTxConfigWithOptions(
 				codec.NewProtoCodec(encodingConfig.InterfaceRegistry),