diff --git a/CHANGELOG.md b/CHANGELOG.md
index 11d107b24..56d7ffc62 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -39,6 +39,7 @@ The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/)
 
 ### Improvements
 
+- [#1430](https://github.com/babylonlabs-io/babylon/pull/1430) Bump Cosmos EVM to 0.41 and add signer extractor.
 - [#1553](https://github.com/babylonlabs-io/babylon/pull/1553) Remove native Coin precompile from token pairs.
 - [#1555](https://github.com/babylonlabs-io/babylon/pull/1555) Create new mergify rule for v4.
 - [#1554](https://github.com/babylonlabs-io/babylon/pull/1554) Bump repo to v4.
diff --git a/app/app.go b/app/app.go
index 56f63e14b..d0c5e4c3f 100644
--- a/app/app.go
+++ b/app/app.go
@@ -3,6 +3,7 @@ package app
 import (
 	"encoding/json"
 	"fmt"
+	"github.com/ethereum/go-ethereum/common"
 	"io"
 	"os"
 	"path/filepath"
@@ -80,6 +81,7 @@ import (
 	"github.com/cosmos/cosmos-sdk/x/staking"
 	stakingkeeper "github.com/cosmos/cosmos-sdk/x/staking/keeper"
 	stakingtypes "github.com/cosmos/cosmos-sdk/x/staking/types"
+	evmante "github.com/cosmos/evm/ante"
 	evmencoding "github.com/cosmos/evm/encoding"
 	srvflags "github.com/cosmos/evm/server/flags"
 	evmutils "github.com/cosmos/evm/utils"
@@ -218,6 +220,7 @@ type BabylonApp struct {
 	legacyAmino *codec.LegacyAmino
 	appCodec    codec.Codec
 	txConfig    client.TxConfig
+	clientCtx   client.Context
 
 	interfaceRegistry types.InterfaceRegistry
 	invCheckPeriod    uint
@@ -231,6 +234,9 @@ type BabylonApp struct {
 
 	// module configurator
 	configurator module.Configurator
+
+	// pending tx listeners
+	pendingTxListeners []evmante.PendingTxListener
 }
 
 // NewBabylonApp returns a reference to an initialized BabylonApp.
@@ -587,7 +593,7 @@ func NewBabylonApp(
 
 	// set proposal extension
 	proposalHandler := prepare.NewProposalHandler(
-		logger, &app.CheckpointingKeeper, bApp.Mempool(), bApp, app.EncCfg)
+		logger, &app.CheckpointingKeeper, bApp.Mempool(), bApp, app.EncCfg, bbn.NewEthSignerExtractionAdapter(mempool.NewDefaultSignerExtractionAdapter()))
 	proposalHandler.SetHandlers(bApp)
 
 	// set vote extension
@@ -981,6 +987,7 @@ func getAppMempool(appOpts servertypes.AppOptions) mempool.Mempool {
 		maxTxs     = cast.ToInt(appOpts.Get(server.FlagMempoolMaxTxs))
 		mempoolCfg = mempool.DefaultPriorityNonceMempoolConfig()
 	)
+	mempoolCfg.SignerExtractor = bbn.NewEthSignerExtractionAdapter(mempool.NewDefaultSignerExtractionAdapter())
 	mempoolCfg.MaxTx = maxTxs
 	mp = mempool.NewPriorityMempool(mempoolCfg)
 	if maxTxs < 0 {
@@ -988,3 +995,11 @@ func getAppMempool(appOpts servertypes.AppOptions) mempool.Mempool {
 	}
 	return mp
 }
+
+func (app *BabylonApp) RegisterPendingTxListener(listener func(common.Hash)) {
+	app.pendingTxListeners = append(app.pendingTxListeners, listener)
+}
+
+func (app *BabylonApp) SetClientCtx(clientCtx client.Context) {
+	app.clientCtx = clientCtx
+}
diff --git a/app/keepers/keepers.go b/app/keepers/keepers.go
index be2c58961..84398e5c1 100644
--- a/app/keepers/keepers.go
+++ b/app/keepers/keepers.go
@@ -482,7 +482,6 @@ func (ak *AppKeepers) InitKeepers(
 		ak.Erc20Keeper, // Add ERC20 Keeper for ERC20 transfers
 		appparams.AccGov.String(),
 	)
-
 	ak.EVMKeeper.WithStaticPrecompiles(
 		NewAvailableStaticPrecompiles(
 			appCodec,
@@ -490,7 +489,6 @@ func (ak *AppKeepers) InitKeepers(
 			ak.Erc20Keeper,
 			ak.GovKeeper,
 			ak.SlashingKeeper,
-			ak.EvidenceKeeper,
 		),
 	)
 	// Create the TokenFactory Keeper
diff --git a/app/keepers/precompiles.go b/app/keepers/precompiles.go
index 105a9d9c1..34f739642 100644
--- a/app/keepers/precompiles.go
+++ b/app/keepers/precompiles.go
@@ -2,21 +2,22 @@ package keepers
 
 import (
 	"fmt"
-	"github.com/cosmos/cosmos-sdk/codec"
-	precisebankkeeper "github.com/cosmos/evm/x/precisebank/keeper"
-	evmtypes "github.com/cosmos/evm/x/vm/types"
 	"maps"
 
-	evidencekeeper "cosmossdk.io/x/evidence/keeper"
+	"cosmossdk.io/core/address"
+	appparams "github.com/babylonlabs-io/babylon/v4/app/params"
+	"github.com/cosmos/cosmos-sdk/codec"
+	authcodec "github.com/cosmos/cosmos-sdk/x/auth/codec"
 	govkeeper "github.com/cosmos/cosmos-sdk/x/gov/keeper"
 	slashingkeeper "github.com/cosmos/cosmos-sdk/x/slashing/keeper"
 	bankprecompile "github.com/cosmos/evm/precompiles/bank"
 	"github.com/cosmos/evm/precompiles/bech32"
-	evidenceprecompile "github.com/cosmos/evm/precompiles/evidence"
 	govprecompile "github.com/cosmos/evm/precompiles/gov"
 	"github.com/cosmos/evm/precompiles/p256"
 	slashingprecompile "github.com/cosmos/evm/precompiles/slashing"
 	erc20Keeper "github.com/cosmos/evm/x/erc20/keeper"
+	precisebankkeeper "github.com/cosmos/evm/x/precisebank/keeper"
+	evmtypes "github.com/cosmos/evm/x/vm/types"
 	"github.com/ethereum/go-ethereum/common"
 	"github.com/ethereum/go-ethereum/core/vm"
 )
@@ -33,7 +34,21 @@ var BabylonAvailableStaticPrecompiles = []string{
 	evmtypes.BankPrecompileAddress,
 	evmtypes.GovPrecompileAddress,
 	evmtypes.SlashingPrecompileAddress,
-	evmtypes.EvidencePrecompileAddress,
+}
+
+type PrecompileOptions struct {
+	// Codec is the codec used to encode and decode messages.
+	AddressCodec address.Codec
+	// ValidatorAddressCodec is the codec used to encode and decode validator addresses.
+	ValidatorAddressCodec address.Codec
+	// ConsensusAddressCodec is the codec used to encode and decode consensus addresses.
+	ConsensusAddressCodec address.Codec
+}
+
+var CodecOptions = PrecompileOptions{
+	AddressCodec:          authcodec.NewBech32Codec(appparams.Bech32PrefixAccAddr),
+	ValidatorAddressCodec: authcodec.NewBech32Codec(appparams.Bech32PrefixValAddr),
+	ConsensusAddressCodec: authcodec.NewBech32Codec(appparams.Bech32PrefixConsAddr),
 }
 
 // NewAvailableStaticPrecompiles adds the static precompiles to the EVM
@@ -44,10 +59,8 @@ func NewAvailableStaticPrecompiles(
 	erc20Keeper erc20Keeper.Keeper,
 	govKeeper govkeeper.Keeper,
 	slashingKeeper slashingkeeper.Keeper,
-	evidenceKeeper evidencekeeper.Keeper,
 ) map[common.Address]vm.PrecompiledContract {
 	// TODO: We can add more custom precompiles here for Babylon Modules
-
 	// Clone the mapping from the latest EVM fork.
 	precompiles := maps.Clone(vm.PrecompiledContractsPrague)
 
@@ -64,21 +77,16 @@ func NewAvailableStaticPrecompiles(
 		panic(fmt.Errorf("failed to instantiate bank precompile: %w", err))
 	}
 
-	govPrecompile, err := govprecompile.NewPrecompile(govKeeper, cdc)
+	govPrecompile, err := govprecompile.NewPrecompile(govKeeper, cdc, CodecOptions.AddressCodec)
 	if err != nil {
 		panic(fmt.Errorf("failed to instantiate gov precompile: %w", err))
 	}
 
-	slashingPrecompile, err := slashingprecompile.NewPrecompile(slashingKeeper)
+	slashingPrecompile, err := slashingprecompile.NewPrecompile(slashingKeeper, CodecOptions.ValidatorAddressCodec, CodecOptions.ConsensusAddressCodec)
 	if err != nil {
 		panic(fmt.Errorf("failed to instantiate slashing precompile: %w", err))
 	}
 
-	evidencePrecompile, err := evidenceprecompile.NewPrecompile(evidenceKeeper)
-	if err != nil {
-		panic(fmt.Errorf("failed to instantiate evidence precompile: %w", err))
-	}
-
 	// Stateless precompiles
 	precompiles[bech32Precompile.Address()] = bech32Precompile
 	precompiles[p256Precompile.Address()] = p256Precompile
@@ -87,7 +95,6 @@ func NewAvailableStaticPrecompiles(
 	precompiles[bankPrecompile.Address()] = bankPrecompile
 	precompiles[govPrecompile.Address()] = govPrecompile
 	precompiles[slashingPrecompile.Address()] = slashingPrecompile
-	precompiles[evidencePrecompile.Address()] = evidencePrecompile
 
 	return precompiles
 }
diff --git a/cmd/babylond/cmd/custom_babylon_config.go b/cmd/babylond/cmd/custom_babylon_config.go
index 17032d4ba..133bcbb66 100644
--- a/cmd/babylond/cmd/custom_babylon_config.go
+++ b/cmd/babylond/cmd/custom_babylon_config.go
@@ -68,8 +68,7 @@ type BabylonAppConfig struct {
 func DefaultBabylonAppConfig() *BabylonAppConfig {
 	baseConfig := *serverconfig.DefaultConfig()
 	// Update the default Mempool.MaxTxs to be 0 to make sure the PriorityNonceMempool is used
-	// TODO: Using no-op mempool for EVM until issue with mempool support is resolved
-	baseConfig.Mempool.MaxTxs = -1
+	baseConfig.Mempool.MaxTxs = 0
 	// The SDK's default minimum gas price is set to "0.002ubbn" (empty value) inside
 	// app.toml, in order to avoid spamming attacks due to transactions with 0 gas price.
 	baseConfig.MinGasPrices = fmt.Sprintf("%f%s", appparams.GlobalMinGasPrice, appparams.BaseCoinUnit)
diff --git a/cmd/babylond/cmd/root.go b/cmd/babylond/cmd/root.go
index ad70f239e..7a68195b2 100644
--- a/cmd/babylond/cmd/root.go
+++ b/cmd/babylond/cmd/root.go
@@ -321,7 +321,7 @@ func txCommand() *cobra.Command {
 }
 
 // newApp is an appCreator
-func newApp(logger log.Logger, db dbm.DB, traceStore io.Writer, appOpts servertypes.AppOptions) servertypes.Application {
+func newApp(logger log.Logger, db dbm.DB, traceStore io.Writer, appOpts servertypes.AppOptions) evmserver.Application {
 	baseappOptions := server.DefaultBaseappOptions(appOpts)
 
 	skipUpgradeHeights := make(map[int64]bool)
diff --git a/cmd/babylond/cmd/testnet.go b/cmd/babylond/cmd/testnet.go
index f74f1a34b..092147759 100644
--- a/cmd/babylond/cmd/testnet.go
+++ b/cmd/babylond/cmd/testnet.go
@@ -206,7 +206,7 @@ func InitTestnet(
 	babylonConfig.GRPC.Address = "0.0.0.0:9090"
 
 	// Update babylonConfig to include Ethereum JSON-RPC settings and other settings
-	babylonConfig.Mempool.MaxTxs = -1 // NOTE: No-op mempool required
+	babylonConfig.Mempool.MaxTxs = 0 //
 	babylonConfig.EVM = *servercfg.DefaultEVMConfig()
 	babylonConfig.JSONRPC = *servercfg.DefaultJSONRPCConfig()
 	babylonConfig.JSONRPC.API = []string{"eth", "net", "web3", "debug"} // debug enabled
@@ -463,7 +463,7 @@ func InitTestnet(
 	}
 
 	coins := sdk.Coins{
-		sdk.NewCoin("ubbn", math.NewInt(10e6)),
+		sdk.NewCoin("ubbn", math.NewInt(10e17)),
 	}
 
 	genBalances = append(genBalances, banktypes.Balance{Address: addr.String(), Coins: coins.Sort()})
diff --git a/go.mod b/go.mod
index 3dc918dbc..d2e80c424 100644
--- a/go.mod
+++ b/go.mod
@@ -5,10 +5,10 @@ module github.com/babylonlabs-io/babylon/v4
 require (
 	github.com/CosmWasm/wasmd v0.55.1
 	github.com/btcsuite/btcd v0.24.2
-	github.com/cometbft/cometbft v0.38.17
+	github.com/cometbft/cometbft v0.38.18
 	github.com/cometbft/cometbft-db v0.15.0
 	github.com/cosmos/cosmos-sdk v0.53.4
-	github.com/cosmos/evm v0.3.1
+	github.com/cosmos/evm v0.4.1
 	github.com/cosmos/ibc-go/modules/light-clients/08-wasm/v10 v10.3.0
 	github.com/ethereum/go-ethereum v1.15.11
 	github.com/gorilla/mux v1.8.1
@@ -22,7 +22,7 @@ require (
 	github.com/supranational/blst v0.3.14
 	google.golang.org/genproto v0.0.0-20241118233622-e639e219e697 // indirect
 	google.golang.org/grpc v1.74.2
-	google.golang.org/protobuf v1.36.6
+	google.golang.org/protobuf v1.36.7
 	gopkg.in/yaml.v2 v2.4.0
 )
 
@@ -32,7 +32,7 @@ require (
 	cosmossdk.io/collections v1.2.1
 	cosmossdk.io/core v0.12.0
 	cosmossdk.io/errors v1.0.2
-	cosmossdk.io/log v1.6.0
+	cosmossdk.io/log v1.6.1
 	cosmossdk.io/math v1.5.3
 	cosmossdk.io/store v1.1.2
 	cosmossdk.io/tools/confix v0.1.2
@@ -48,7 +48,7 @@ require (
 	github.com/btcsuite/btcd/btcec/v2 v2.3.4
 	github.com/btcsuite/btcd/btcutil v1.1.6
 	github.com/btcsuite/btcd/chaincfg/chainhash v1.1.0
-	github.com/cosmos/cosmos-db v1.1.1
+	github.com/cosmos/cosmos-db v1.1.3
 	github.com/cosmos/cosmos-proto v1.0.0-beta.5
 	github.com/cosmos/gogoproto v1.7.0
 	github.com/cosmos/ibc-go/v10 v10.3.0
@@ -94,11 +94,10 @@ require (
 	cosmossdk.io/x/nft v0.1.1 // indirect
 	github.com/StackExchange/wmi v1.2.1 // indirect
 	github.com/VictoriaMetrics/fastcache v1.12.2 // indirect
-	github.com/bytedance/sonic v1.13.2 // indirect
-	github.com/bytedance/sonic/loader v0.2.4 // indirect
+	github.com/bytedance/sonic v1.14.0 // indirect
+	github.com/bytedance/sonic/loader v0.3.0 // indirect
 	github.com/cloudwego/base64x v0.1.5 // indirect
-	github.com/consensys/bavard v0.1.27 // indirect
-	github.com/consensys/gnark-crypto v0.16.0 // indirect
+	github.com/consensys/gnark-crypto v0.18.0 // indirect
 	github.com/crate-crypto/go-eth-kzg v1.3.0 // indirect
 	github.com/crate-crypto/go-ipa v0.0.0-20240724233137-53bbb0ceb27a // indirect
 	github.com/deckarep/golang-set/v2 v2.6.0 // indirect
@@ -109,7 +108,7 @@ require (
 	github.com/go-jose/go-jose/v4 v4.0.5 // indirect
 	github.com/go-ole/go-ole v1.3.0 // indirect
 	github.com/go-sourcemap/sourcemap v2.1.3+incompatible // indirect
-	github.com/gofrs/flock v0.8.1 // indirect
+	github.com/gofrs/flock v0.12.1 // indirect
 	github.com/gogo/status v1.1.0 // indirect
 	github.com/google/pprof v0.0.0-20250403155104-27863c87afa6 // indirect
 	github.com/holiman/bloomfilter/v2 v2.0.3 // indirect
@@ -118,7 +117,6 @@ require (
 	github.com/klauspost/cpuid/v2 v2.2.10 // indirect
 	github.com/mattn/go-runewidth v0.0.15 // indirect
 	github.com/mdp/qrterminal/v3 v3.2.1 // indirect
-	github.com/mmcloughlin/addchain v0.4.0 // indirect
 	github.com/olekukonko/tablewriter v0.0.5 // indirect
 	github.com/pion/dtls/v2 v2.2.7 // indirect
 	github.com/pion/logging v0.2.2 // indirect
@@ -139,9 +137,8 @@ require (
 	github.com/zeebo/errs v1.4.0 // indirect
 	go.uber.org/mock v0.5.2 // indirect
 	go.yaml.in/yaml/v2 v2.4.2 // indirect
-	golang.org/x/arch v0.15.0 // indirect
+	golang.org/x/arch v0.17.0 // indirect
 	rsc.io/qr v0.2.0 // indirect
-	rsc.io/tmplfunc v0.0.3 // indirect
 )
 
 require (
@@ -200,10 +197,10 @@ require (
 	github.com/tendermint/go-amino v0.16.0 // indirect
 	github.com/zondax/hid v0.9.2 // indirect
 	go.etcd.io/bbolt v1.4.0-alpha.1 // indirect
-	golang.org/x/crypto v0.40.0
-	golang.org/x/sys v0.34.0 // indirect
-	golang.org/x/term v0.33.0 // indirect
-	golang.org/x/text v0.27.0 // indirect
+	golang.org/x/crypto v0.41.0
+	golang.org/x/sys v0.35.0 // indirect
+	golang.org/x/term v0.34.0 // indirect
+	golang.org/x/text v0.28.0 // indirect
 	nhooyr.io/websocket v1.8.17 // indirect
 )
 
@@ -313,7 +310,7 @@ require (
 	go.opentelemetry.io/otel/metric v1.36.0 // indirect
 	go.opentelemetry.io/otel/trace v1.36.0 // indirect
 	go.uber.org/multierr v1.11.0 // indirect
-	golang.org/x/net v0.42.0 // indirect
+	golang.org/x/net v0.43.0 // indirect
 	golang.org/x/oauth2 v0.30.0 // indirect
 	golang.org/x/time v0.10.0 // indirect
 	google.golang.org/api v0.222.0 // indirect
diff --git a/go.sum b/go.sum
index 9e3e00d76..5fb37b030 100644
--- a/go.sum
+++ b/go.sum
@@ -626,8 +626,8 @@ cosmossdk.io/depinject v1.2.1 h1:eD6FxkIjlVaNZT+dXTQuwQTKZrFZ4UrfCq1RKgzyhMw=
 cosmossdk.io/depinject v1.2.1/go.mod h1:lqQEycz0H2JXqvOgVwTsjEdMI0plswI7p6KX+MVqFOM=
 cosmossdk.io/errors v1.0.2 h1:wcYiJz08HThbWxd/L4jObeLaLySopyyuUFB5w4AGpCo=
 cosmossdk.io/errors v1.0.2/go.mod h1:0rjgiHkftRYPj//3DrD6y8hcm40HcPv/dR4R/4efr0k=
-cosmossdk.io/log v1.6.0 h1:SJIOmJ059wi1piyRgNRXKXhlDXGqnB5eQwhcZKv2tOk=
-cosmossdk.io/log v1.6.0/go.mod h1:5cXXBvfBkR2/BcXmosdCSLXllvgSjphrrDVdfVRmBGM=
+cosmossdk.io/log v1.6.1 h1:YXNwAgbDwMEKwDlCdH8vPcoggma48MgZrTQXCfmMBeI=
+cosmossdk.io/log v1.6.1/go.mod h1:gMwsWyyDBjpdG9u2avCFdysXqxq28WJapJvu+vF1y+E=
 cosmossdk.io/math v1.5.3 h1:WH6tu6Z3AUCeHbeOSHg2mt9rnoiUWVWaQ2t6Gkll96U=
 cosmossdk.io/math v1.5.3/go.mod h1:uqcZv7vexnhMFJF+6zh9EWdm/+Ylyln34IvPnBauPCQ=
 cosmossdk.io/schema v1.1.0 h1:mmpuz3dzouCoyjjcMcA/xHBEmMChN+EHh8EHxHRHhzE=
@@ -777,11 +777,11 @@ github.com/btcsuite/websocket v0.0.0-20150119174127-31079b680792/go.mod h1:ghJtE
 github.com/btcsuite/winsvc v1.0.0/go.mod h1:jsenWakMcC0zFBFurPLEAyrnc/teJEM1O46fmI40EZs=
 github.com/bufbuild/protocompile v0.14.1 h1:iA73zAf/fyljNjQKwYzUHD6AD4R8KMasmwa/FBatYVw=
 github.com/bufbuild/protocompile v0.14.1/go.mod h1:ppVdAIhbr2H8asPk6k4pY7t9zB1OU5DoEw9xY/FUi1c=
-github.com/bytedance/sonic v1.13.2 h1:8/H1FempDZqC4VqjptGo14QQlJx8VdZJegxs6wwfqpQ=
-github.com/bytedance/sonic v1.13.2/go.mod h1:o68xyaF9u2gvVBuGHPlUVCy+ZfmNNO5ETf1+KgkJhz4=
+github.com/bytedance/sonic v1.14.0 h1:/OfKt8HFw0kh2rj8N0F6C/qPGRESq0BbaNZgcNXXzQQ=
+github.com/bytedance/sonic v1.14.0/go.mod h1:WoEbx8WTcFJfzCe0hbmyTGrfjt8PzNEBdxlNUO24NhA=
 github.com/bytedance/sonic/loader v0.1.1/go.mod h1:ncP89zfokxS5LZrJxl5z0UJcsk4M4yY2JpfqGeCtNLU=
-github.com/bytedance/sonic/loader v0.2.4 h1:ZWCw4stuXUsn1/+zQDqeE7JKP+QO47tz7QCNan80NzY=
-github.com/bytedance/sonic/loader v0.2.4/go.mod h1:N8A3vUdtUebEY2/VQC0MyhYeKUFosQU6FxH2JmUe6VI=
+github.com/bytedance/sonic/loader v0.3.0 h1:dskwH8edlzNMctoruo8FPTJDF3vLtDT0sXZwvZJyqeA=
+github.com/bytedance/sonic/loader v0.3.0/go.mod h1:N8A3vUdtUebEY2/VQC0MyhYeKUFosQU6FxH2JmUe6VI=
 github.com/casbin/casbin/v2 v2.1.2/go.mod h1:YcPU1XXisHhLzuxH9coDNf2FbKpjGlbCg3n9yuLkIJQ=
 github.com/cenkalti/backoff v2.2.1+incompatible h1:tNowT99t7UNflLxfYYSlKYsBpXdEet03Pg2g16Swow4=
 github.com/cenkalti/backoff v2.2.1+incompatible/go.mod h1:90ReRw6GdpyfrHakVjL/QHaoyV4aDUVVkXQJJJ3NXXM=
@@ -851,14 +851,12 @@ github.com/cockroachdb/redact v1.1.6/go.mod h1:BVNblN9mBWFyMyqK1k3AAiSxhvhfK2oOZ
 github.com/cockroachdb/tokenbucket v0.0.0-20230807174530-cc333fc44b06 h1:zuQyyAKVxetITBuuhv3BI9cMrmStnpT18zmgmTxunpo=
 github.com/cockroachdb/tokenbucket v0.0.0-20230807174530-cc333fc44b06/go.mod h1:7nc4anLGjupUW/PeY5qiNYsdNXj7zopG+eqsS7To5IQ=
 github.com/codahale/hdrhistogram v0.0.0-20161010025455-3a0bb77429bd/go.mod h1:sE/e/2PUdi/liOCUjSTXgM1o87ZssimdTWN964YiIeI=
-github.com/cometbft/cometbft v0.38.17 h1:FkrQNbAjiFqXydeAO81FUzriL4Bz0abYxN/eOHrQGOk=
-github.com/cometbft/cometbft v0.38.17/go.mod h1:5l0SkgeLRXi6bBfQuevXjKqML1jjfJJlvI1Ulp02/o4=
+github.com/cometbft/cometbft v0.38.18 h1:1ZHYMdu0S75YxFM13LlPXnOwiIpUW5z9TKMQtTIALpw=
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@@ -867,14 +865,14 @@ github.com/coreos/go-systemd/v22 v22.5.0/go.mod h1:Y58oyj3AT4RCenI/lSvhwexgC+NSV
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@@ -1014,8 +1012,8 @@ github.com/fatih/color v1.17.0/go.mod h1:YZ7TlrGPkiz6ku9fK3TLD/pl3CpsiFyu8N92HLg
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@@ -1080,8 +1078,6 @@ github.com/go-sql-driver/mysql v1.4.0/go.mod h1:zAC/RDZ24gD3HViQzih4MyKcchzm+sOG
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@@ -1091,8 +1087,8 @@ github.com/goccy/go-json v0.9.11/go.mod h1:6MelG93GURQebXPDq3khkgXZkazVtN9CRI+MG
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@@ -1208,7 +1204,6 @@ github.com/google/s2a-go v0.1.9 h1:LGD7gtMgezd8a/Xak7mEWL0PjoTQFvpRudN895yqKW0=
 github.com/google/s2a-go v0.1.9/go.mod h1:YA0Ei2ZQL3acow2O62kdp9UlnvMmU7kA6Eutn0dXayM=
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@@ -1469,9 +1464,6 @@ github.com/mitchellh/mapstructure v1.3.2/go.mod h1:bFUtVrKA4DC2yAKiSyO/QUcy7e+RR
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@@ -1514,8 +1506,6 @@ github.com/onsi/ginkgo v1.12.1/go.mod h1:zj2OWP4+oCPe1qIXoGWkgMRwljMUYCdkwsT2108
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@@ -1840,8 +1830,6 @@ go.uber.org/atomic v1.3.2/go.mod h1:gD2HeocX3+yG+ygLZcrzQJaqmWj9AIm7n08wl/qW/PE=
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@@ -1862,8 +1850,8 @@ go.yaml.in/yaml/v2 v2.4.2 h1:DzmwEr2rDGHl7lsFgAHxmNz/1NlQ7xLIrlN2h5d1eGI=
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-golang.org/x/arch v0.15.0/go.mod h1:JmwW7aLIoRUKgaTzhkiEFxvcEiQGyOg9BMonBJUS7EE=
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@@ -1885,8 +1873,8 @@ golang.org/x/crypto v0.13.0/go.mod h1:y6Z2r+Rw4iayiXXAIxJIDAJ1zMW4yaTpebo8fPOliY
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-golang.org/x/crypto v0.40.0/go.mod h1:Qr1vMER5WyS2dfPHAlsOj01wgLbsyWtFn/aY+5+ZdxY=
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@@ -2026,8 +2014,8 @@ golang.org/x/net v0.15.0/go.mod h1:idbUs1IY1+zTqbi8yxTbhexhEEk5ur9LInksu6HrEpk=
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-golang.org/x/net v0.42.0 h1:jzkYrhi3YQWD6MLBJcsklgQsoAcw89EcZbJw8Z614hs=
-golang.org/x/net v0.42.0/go.mod h1:FF1RA5d3u7nAYA4z2TkclSCKh68eSXtiFwcWQpPXdt8=
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 golang.org/x/oauth2 v0.0.0-20180821212333-d2e6202438be/go.mod h1:N/0e6XlmueqKjAGxoOufVs8QHGRruUQn6yWY3a++T0U=
 golang.org/x/oauth2 v0.0.0-20190226205417-e64efc72b421/go.mod h1:gOpvHmFTYa4IltrdGE7lF6nIHvwfUNPOp7c8zoXwtLw=
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@@ -2196,8 +2184,8 @@ golang.org/x/sys v0.17.0/go.mod h1:/VUhepiaJMQUp4+oa/7Zr1D23ma6VTLIYjOOTFZPUcA=
 golang.org/x/sys v0.20.0/go.mod h1:/VUhepiaJMQUp4+oa/7Zr1D23ma6VTLIYjOOTFZPUcA=
 golang.org/x/sys v0.21.0/go.mod h1:/VUhepiaJMQUp4+oa/7Zr1D23ma6VTLIYjOOTFZPUcA=
 golang.org/x/sys v0.29.0/go.mod h1:/VUhepiaJMQUp4+oa/7Zr1D23ma6VTLIYjOOTFZPUcA=
-golang.org/x/sys v0.34.0 h1:H5Y5sJ2L2JRdyv7ROF1he/lPdvFsd0mJHFw2ThKHxLA=
-golang.org/x/sys v0.34.0/go.mod h1:BJP2sWEmIv4KK5OTEluFJCKSidICx8ciO85XgH3Ak8k=
+golang.org/x/sys v0.35.0 h1:vz1N37gP5bs89s7He8XuIYXpyY0+QlsKmzipCbUtyxI=
+golang.org/x/sys v0.35.0/go.mod h1:BJP2sWEmIv4KK5OTEluFJCKSidICx8ciO85XgH3Ak8k=
 golang.org/x/telemetry v0.0.0-20240228155512-f48c80bd79b2/go.mod h1:TeRTkGYfJXctD9OcfyVLyj2J3IxLnKwHJR8f4D8a3YE=
 golang.org/x/term v0.0.0-20201117132131-f5c789dd3221/go.mod h1:Nr5EML6q2oocZ2LXRh80K7BxOlk5/8JxuGnuhpl+muw=
 golang.org/x/term v0.0.0-20201126162022-7de9c90e9dd1/go.mod h1:bj7SfCRtBDWHUb9snDiAeCFNEtKQo2Wmx5Cou7ajbmo=
@@ -2214,8 +2202,8 @@ golang.org/x/term v0.12.0/go.mod h1:owVbMEjm3cBLCHdkQu9b1opXd4ETQWc3BhuQGKgXgvU=
 golang.org/x/term v0.17.0/go.mod h1:lLRBjIVuehSbZlaOtGMbcMncT+aqLLLmKrsjNrUguwk=
 golang.org/x/term v0.20.0/go.mod h1:8UkIAJTvZgivsXaD6/pH6U9ecQzZ45awqEOzuCvwpFY=
 golang.org/x/term v0.28.0/go.mod h1:Sw/lC2IAUZ92udQNf3WodGtn4k/XoLyZoh8v/8uiwek=
-golang.org/x/term v0.33.0 h1:NuFncQrRcaRvVmgRkvM3j/F00gWIAlcmlB8ACEKmGIg=
-golang.org/x/term v0.33.0/go.mod h1:s18+ql9tYWp1IfpV9DmCtQDDSRBUjKaw9M1eAv5UeF0=
+golang.org/x/term v0.34.0 h1:O/2T7POpk0ZZ7MAzMeWFSg6S5IpWd/RXDlM9hgM3DR4=
+golang.org/x/term v0.34.0/go.mod h1:5jC53AEywhIVebHgPVeg0mj8OD3VO9OzclacVrqpaAw=
 golang.org/x/text v0.0.0-20170915032832-14c0d48ead0c/go.mod h1:NqM8EUOU14njkJ3fqMW+pc6Ldnwhi/IjpwHt7yyuwOQ=
 golang.org/x/text v0.3.0/go.mod h1:NqM8EUOU14njkJ3fqMW+pc6Ldnwhi/IjpwHt7yyuwOQ=
 golang.org/x/text v0.3.1-0.20180807135948-17ff2d5776d2/go.mod h1:NqM8EUOU14njkJ3fqMW+pc6Ldnwhi/IjpwHt7yyuwOQ=
@@ -2237,8 +2225,8 @@ golang.org/x/text v0.13.0/go.mod h1:TvPlkZtksWOMsz7fbANvkp4WM8x/WCo/om8BMLbz+aE=
 golang.org/x/text v0.14.0/go.mod h1:18ZOQIKpY8NJVqYksKHtTdi31H5itFRjB5/qKTNYzSU=
 golang.org/x/text v0.15.0/go.mod h1:18ZOQIKpY8NJVqYksKHtTdi31H5itFRjB5/qKTNYzSU=
 golang.org/x/text v0.21.0/go.mod h1:4IBbMaMmOPCJ8SecivzSH54+73PCFmPWxNTLm+vZkEQ=
-golang.org/x/text v0.27.0 h1:4fGWRpyh641NLlecmyl4LOe6yDdfaYNrGb2zdfo4JV4=
-golang.org/x/text v0.27.0/go.mod h1:1D28KMCvyooCX9hBiosv5Tz/+YLxj0j7XhWjpSUF7CU=
+golang.org/x/text v0.28.0 h1:rhazDwis8INMIwQ4tpjLDzUhx6RlXqZNPEM0huQojng=
+golang.org/x/text v0.28.0/go.mod h1:U8nCwOR8jO/marOQ0QbDiOngZVEBB7MAiitBuMjXiNU=
 golang.org/x/time v0.0.0-20180412165947-fbb02b2291d2/go.mod h1:tRJNPiyCQ0inRvYxbN9jk5I+vvW/OXSQhTDSoE431IQ=
 golang.org/x/time v0.0.0-20181108054448-85acf8d2951c/go.mod h1:tRJNPiyCQ0inRvYxbN9jk5I+vvW/OXSQhTDSoE431IQ=
 golang.org/x/time v0.0.0-20190308202827-9d24e82272b4/go.mod h1:tRJNPiyCQ0inRvYxbN9jk5I+vvW/OXSQhTDSoE431IQ=
@@ -2319,8 +2307,6 @@ golang.org/x/tools v0.6.0/go.mod h1:Xwgl3UAJ/d3gWutnCtw505GrjyAbvKui8lOU390QaIU=
 golang.org/x/tools v0.7.0/go.mod h1:4pg6aUX35JBAogB10C9AtvVL+qowtN4pT3CGSQex14s=
 golang.org/x/tools v0.13.0/go.mod h1:HvlwmtVNQAhOuCjW7xxvovg8wbNq7LwfXh/k7wXUl58=
 golang.org/x/tools v0.21.1-0.20240508182429-e35e4ccd0d2d/go.mod h1:aiJjzUbINMkxbQROHiO6hDPo2LHcIPhhQsa9DLh0yGk=
-golang.org/x/tools v0.34.0 h1:qIpSLOxeCYGg9TrcJokLBG4KFA6d795g0xkBkiESGlo=
-golang.org/x/tools v0.34.0/go.mod h1:pAP9OwEaY1CAW3HOmg3hLZC5Z0CCmzjAF2UQMSqNARg=
 golang.org/x/xerrors v0.0.0-20190717185122-a985d3407aa7/go.mod h1:I/5z698sn9Ka8TeJc9MKroUUfqBBauWjQqLJ2OPfmY0=
 golang.org/x/xerrors v0.0.0-20191011141410-1b5146add898/go.mod h1:I/5z698sn9Ka8TeJc9MKroUUfqBBauWjQqLJ2OPfmY0=
 golang.org/x/xerrors v0.0.0-20191204190536-9bdfabe68543/go.mod h1:I/5z698sn9Ka8TeJc9MKroUUfqBBauWjQqLJ2OPfmY0=
@@ -2619,8 +2605,8 @@ google.golang.org/protobuf v1.28.1/go.mod h1:HV8QOd/L58Z+nl8r43ehVNZIU/HEI6OcFqw
 google.golang.org/protobuf v1.29.1/go.mod h1:HV8QOd/L58Z+nl8r43ehVNZIU/HEI6OcFqwMG9pJV4I=
 google.golang.org/protobuf v1.30.0/go.mod h1:HV8QOd/L58Z+nl8r43ehVNZIU/HEI6OcFqwMG9pJV4I=
 google.golang.org/protobuf v1.33.0/go.mod h1:c6P6GXX6sHbq/GpV6MGZEdwhWPcYBgnhAHhKbcUYpos=
-google.golang.org/protobuf v1.36.6 h1:z1NpPI8ku2WgiWnf+t9wTPsn6eP1L7ksHUlkfLvd9xY=
-google.golang.org/protobuf v1.36.6/go.mod h1:jduwjTPXsFjZGTmRluh+L6NjiWu7pchiJ2/5YcXBHnY=
+google.golang.org/protobuf v1.36.7 h1:IgrO7UwFQGJdRNXH/sQux4R1Dj1WAKcLElzeeRaXV2A=
+google.golang.org/protobuf v1.36.7/go.mod h1:jduwjTPXsFjZGTmRluh+L6NjiWu7pchiJ2/5YcXBHnY=
 gopkg.in/alecthomas/kingpin.v2 v2.2.6/go.mod h1:FMv+mEhP44yOT+4EoQTLFTRgOQ1FBLkstjWtayDeSgw=
 gopkg.in/check.v1 v0.0.0-20161208181325-20d25e280405/go.mod h1:Co6ibVJAznAaIkqp8huTwlJQCZ016jof/cbN4VW5Yz0=
 gopkg.in/check.v1 v1.0.0-20180628173108-788fd7840127/go.mod h1:Co6ibVJAznAaIkqp8huTwlJQCZ016jof/cbN4VW5Yz0=
@@ -2708,8 +2694,6 @@ rsc.io/qr v0.2.0 h1:6vBLea5/NRMVTz8V66gipeLycZMl/+UlFmk8DvqQ6WY=
 rsc.io/qr v0.2.0/go.mod h1:IF+uZjkb9fqyeF/4tlBoynqmQxUoPfWEKh921coOuXs=
 rsc.io/quote/v3 v3.1.0/go.mod h1:yEA65RcK8LyAZtP9Kv3t0HmxON59tX3rD+tICJqUlj0=
 rsc.io/sampler v1.3.0/go.mod h1:T1hPZKmBbMNahiBKFy5HrXp6adAjACjK9JXDnKaTXpA=
-rsc.io/tmplfunc v0.0.3 h1:53XFQh69AfOa8Tw0Jm7t+GV7KZhOi6jzsCzTtKbMvzU=
-rsc.io/tmplfunc v0.0.3/go.mod h1:AG3sTPzElb1Io3Yg4voV9AGZJuleGAwaVRxL9M49PhA=
 sigs.k8s.io/yaml v1.1.0/go.mod h1:UJmg0vDUVViEyp3mgSv9WPwZCDxu4rQW1olrI1uml+o=
 sigs.k8s.io/yaml v1.6.0 h1:G8fkbMSAFqgEFgh4b1wmtzDnioxFCUgTZhlbj5P9QYs=
 sigs.k8s.io/yaml v1.6.0/go.mod h1:796bPqUfzR/0jLAl6XjHl3Ck7MiyVv8dbTdyT3/pMf4=
diff --git a/types/signer.go b/types/signer.go
new file mode 100644
index 000000000..f68eb9544
--- /dev/null
+++ b/types/signer.go
@@ -0,0 +1,43 @@
+package types
+
+import (
+	sdk "github.com/cosmos/cosmos-sdk/types"
+	"github.com/cosmos/cosmos-sdk/types/mempool"
+	authante "github.com/cosmos/cosmos-sdk/x/auth/ante"
+	evmtypes "github.com/cosmos/evm/x/vm/types"
+)
+
+var _ mempool.SignerExtractionAdapter = EthSignerExtractionAdapter{}
+
+// EthSignerExtractionAdapter is the default implementation of SignerExtractionAdapter. It extracts the signers
+// from a cosmos-sdk tx via GetSignaturesV2.
+type EthSignerExtractionAdapter struct {
+	fallback mempool.SignerExtractionAdapter
+}
+
+// NewEthSignerExtractionAdapter constructs a new EthSignerExtractionAdapter instance
+func NewEthSignerExtractionAdapter(fallback mempool.SignerExtractionAdapter) EthSignerExtractionAdapter {
+	return EthSignerExtractionAdapter{fallback}
+}
+
+// GetSigners implements the Adapter interface
+// NOTE: only the first item is used by the mempool
+func (s EthSignerExtractionAdapter) GetSigners(tx sdk.Tx) ([]mempool.SignerData, error) {
+	if txWithExtensions, ok := tx.(authante.HasExtensionOptionsTx); ok {
+		opts := txWithExtensions.GetExtensionOptions()
+		if len(opts) > 0 && opts[0].GetTypeUrl() == "/cosmos.evm.vm.v1.ExtensionOptionsEthereumTx" {
+			for _, msg := range tx.GetMsgs() {
+				if ethMsg, ok := msg.(*evmtypes.MsgEthereumTx); ok {
+					return []mempool.SignerData{
+						mempool.NewSignerData(
+							ethMsg.GetFrom(),
+							ethMsg.AsTransaction().Nonce(),
+						),
+					}, nil
+				}
+			}
+		}
+	}
+
+	return s.fallback.GetSigners(tx)
+}
diff --git a/x/checkpointing/prepare/proposal.go b/x/checkpointing/prepare/proposal.go
index b65bd5bb2..f643e78f0 100644
--- a/x/checkpointing/prepare/proposal.go
+++ b/x/checkpointing/prepare/proposal.go
@@ -4,7 +4,6 @@ import (
 	"bytes"
 	"encoding/hex"
 	"fmt"
-
 	cometproto "github.com/cometbft/cometbft/proto/tendermint/types"
 
 	"cosmossdk.io/log"
@@ -15,6 +14,7 @@ import (
 	"github.com/cosmos/cosmos-sdk/types/mempool"
 	sdktestutil "github.com/cosmos/cosmos-sdk/types/module/testutil"
 
+	"github.com/babylonlabs-io/babylon/v4/types"
 	ckpttypes "github.com/babylonlabs-io/babylon/v4/x/checkpointing/types"
 )
 
@@ -45,8 +45,10 @@ func NewProposalHandler(
 	mp mempool.Mempool,
 	bApp *baseapp.BaseApp,
 	encCfg sdktestutil.TestEncodingConfig,
+	ethSignerExtractor types.EthSignerExtractionAdapter,
 ) *ProposalHandler {
 	defaultHandler := baseapp.NewDefaultProposalHandler(mp, bApp)
+	defaultHandler.SetSignerExtractionAdapter(ethSignerExtractor)
 	ckpttypes.RegisterInterfaces(encCfg.InterfaceRegistry)
 
 	return &ProposalHandler{
diff --git a/x/checkpointing/prepare/proposal_test.go b/x/checkpointing/prepare/proposal_test.go
index 3bc270c18..3f8b3e5b6 100644
--- a/x/checkpointing/prepare/proposal_test.go
+++ b/x/checkpointing/prepare/proposal_test.go
@@ -3,6 +3,7 @@ package prepare_test
 import (
 	"bytes"
 	"fmt"
+	bbn "github.com/babylonlabs-io/babylon/v4/types"
 	sdktestutil "github.com/cosmos/cosmos-sdk/types/module/testutil"
 	"math/rand"
 	"sort"
@@ -726,6 +727,7 @@ func TestPrepareProposalAtVoteExtensionHeight(t *testing.T) {
 				mem,
 				bApp,
 				encCfg,
+				bbn.NewEthSignerExtractionAdapter(mempool.NewDefaultSignerExtractionAdapter()),
 			)
 
 			if scenario.TxVerifier != nil {