diff --git a/app/app.go b/app/app.go
index 26d53df3..d0a44c10 100644
--- a/app/app.go
+++ b/app/app.go
@@ -344,16 +344,10 @@ func New(
 	// must be set manually as follow. The upgrade module will de-duplicate the module version map.
 	//
 	initChainer := func(ctx sdk.Context, req *abci.RequestInitChain) (*abci.ResponseInitChain, error) {
-
-		// TODO: Is there a cleaner way to update the denom without having to unmarshal and marshal the genesis state?
-		// At the time of validator being created, the denom is still the old one if we just set the params here:
-		//
-		//   stakingParams := app.StakingKeeper.GetParams(ctx)
-		//   stakingParams.BondDenom = BondDenom
-		//   app.StakingKeeper.SetParams(ctx, stakingParams)
-		//
-		// The above approach doesn't work because the params need to be set before InitGenesis runs.
-		// Hence, we need to update the genesis state directly.
+		// Temp workaround to set default IBC params until app wiring is fully supported.
+		if req.InitialHeight == 1 {
+			app.setDefaultIBCParams(ctx)
+		}
 
 		var genesisState GenesisState
 		err := json.Unmarshal(req.AppStateBytes, &genesisState)
@@ -376,8 +370,8 @@ func New(
 		}
 
 		return app.App.InitChainer(ctx, req)
-
 	}
+
 	app.SetInitChainer(initChainer)
 
 	if err := app.Load(loadLatest); err != nil {
@@ -418,7 +412,6 @@ func (app *App) GetMemKey(storeKey string) *storetypes.MemoryStoreKey {
 	if !ok {
 		return nil
 	}
-
 	return key
 }
 
@@ -430,7 +423,6 @@ func (app *App) kvStoreKeys() map[string]*storetypes.KVStoreKey {
 			keys[kv.Name()] = kv
 		}
 	}
-
 	return keys
 }
 
diff --git a/app/ibc.go b/app/ibc.go
index 2b0bd569..3efae355 100644
--- a/app/ibc.go
+++ b/app/ibc.go
@@ -4,6 +4,7 @@ import (
 	"cosmossdk.io/core/appmodule"
 	storetypes "cosmossdk.io/store/types"
 	cdctypes "github.com/cosmos/cosmos-sdk/codec/types"
+	sdk "github.com/cosmos/cosmos-sdk/types"
 	authtypes "github.com/cosmos/cosmos-sdk/x/auth/types"
 	govtypes "github.com/cosmos/cosmos-sdk/x/gov/types"
 	govv1beta1 "github.com/cosmos/cosmos-sdk/x/gov/types/v1beta1"
@@ -28,6 +29,7 @@ import (
 	ibc "github.com/cosmos/ibc-go/v8/modules/core"
 	ibcclienttypes "github.com/cosmos/ibc-go/v8/modules/core/02-client/types"
 	ibcconnectiontypes "github.com/cosmos/ibc-go/v8/modules/core/03-connection/types"
+	ibcchanneltypes "github.com/cosmos/ibc-go/v8/modules/core/04-channel/types"
 	porttypes "github.com/cosmos/ibc-go/v8/modules/core/05-port/types"
 	ibcexported "github.com/cosmos/ibc-go/v8/modules/core/exported"
 	ibckeeper "github.com/cosmos/ibc-go/v8/modules/core/keeper"
@@ -179,6 +181,19 @@ func (app *App) registerIBCModules() {
 	}
 }
 
+// setDefaultIBCParams is used to set default IBC params until app wiring is fully supported.
+func (app *App) setDefaultIBCParams(ctx sdk.Context) {
+	app.IBCKeeper.ClientKeeper.SetNextClientSequence(ctx, 0)
+	app.IBCKeeper.ConnectionKeeper.SetNextConnectionSequence(ctx, 0)
+	app.IBCKeeper.ChannelKeeper.SetNextChannelSequence(ctx, 0)
+	app.IBCKeeper.ClientKeeper.SetParams(ctx, ibcclienttypes.DefaultParams())
+	app.IBCKeeper.ConnectionKeeper.SetParams(ctx, ibcconnectiontypes.DefaultParams())
+	app.IBCKeeper.ChannelKeeper.SetParams(ctx, ibcchanneltypes.DefaultParams())
+	app.ICAControllerKeeper.SetParams(ctx, icacontrollertypes.DefaultParams())
+	app.ICAHostKeeper.SetParams(ctx, icahosttypes.DefaultParams())
+	app.TransferKeeper.SetParams(ctx, ibctransfertypes.DefaultParams())
+}
+
 // Since the IBC modules don't support dependency injection, we need to
 // manually register the modules on the client side.
 // This needs to be removed after IBC supports App Wiring.