diff --git a/.changelog/unreleased/dependencies/2732-bump-ics.md b/.changelog/unreleased/dependencies/2732-bump-ics.md
new file mode 100644
index 00000000000..4c861ee7ab5
--- /dev/null
+++ b/.changelog/unreleased/dependencies/2732-bump-ics.md
@@ -0,0 +1,3 @@
+- Bump [interchain-security](https://github.com/cosmos/interchain-security) to
+  [v2.1.0-provider-lsm](https://github.com/cosmos/interchain-security/releases/tag/v2.1.0-provider-lsm)
+  ([\#2732](https://github.com/cosmos/gaia/pull/2732))
\ No newline at end of file
diff --git a/.changelog/unreleased/state-breaking/2732-bump-ics.md b/.changelog/unreleased/state-breaking/2732-bump-ics.md
new file mode 100644
index 00000000000..4c861ee7ab5
--- /dev/null
+++ b/.changelog/unreleased/state-breaking/2732-bump-ics.md
@@ -0,0 +1,3 @@
+- Bump [interchain-security](https://github.com/cosmos/interchain-security) to
+  [v2.1.0-provider-lsm](https://github.com/cosmos/interchain-security/releases/tag/v2.1.0-provider-lsm)
+  ([\#2732](https://github.com/cosmos/gaia/pull/2732))
\ No newline at end of file
diff --git a/go.mod b/go.mod
index 7e6813e7a62..2d6cebf00a0 100644
--- a/go.mod
+++ b/go.mod
@@ -178,7 +178,7 @@ replace (
 	github.com/cosmos/cosmos-sdk => github.com/cosmos/cosmos-sdk v0.45.16-ics-lsm
 
 	// Use special ICS release with support for LSM
-	github.com/cosmos/interchain-security/v2 => github.com/cosmos/interchain-security/v2 v2.1.0-provider-lsm-rc1
+	github.com/cosmos/interchain-security/v2 => github.com/cosmos/interchain-security/v2 v2.1.0-provider-lsm
 
 	// TODO: remove it: https://github.com/cosmos/cosmos-sdk/issues/13134
 	github.com/dgrijalva/jwt-go => github.com/golang-jwt/jwt/v4 v4.4.2
diff --git a/go.sum b/go.sum
index 3e2461d28a6..c841f4e643e 100644
--- a/go.sum
+++ b/go.sum
@@ -252,8 +252,8 @@ github.com/cosmos/ibc-apps/middleware/packet-forward-middleware/v4 v4.1.0 h1:96f
 github.com/cosmos/ibc-apps/middleware/packet-forward-middleware/v4 v4.1.0/go.mod h1:Mn/jr9pIYr1ofFuptLEi9N6MjcshTT0cpoOY4ln1DeA=
 github.com/cosmos/ibc-go/v4 v4.4.2 h1:PG4Yy0/bw6Hvmha3RZbc53KYzaCwuB07Ot4GLyzcBvo=
 github.com/cosmos/ibc-go/v4 v4.4.2/go.mod h1:j/kD2JCIaV5ozvJvaEkWhLxM2zva7/KTM++EtKFYcB8=
-github.com/cosmos/interchain-security/v2 v2.1.0-provider-lsm-rc1 h1:bV3rwjBqDpnv9/QAtndxB0aoIgUb3exrTPcml1Ejy8w=
-github.com/cosmos/interchain-security/v2 v2.1.0-provider-lsm-rc1/go.mod h1:7W8hrBDV/ehMmUTFZzfSuJRRgSwrflxszbl8Jj1cuIw=
+github.com/cosmos/interchain-security/v2 v2.1.0-provider-lsm h1:o1d1zJG8P+m/PjbYe4BWn8dJtffkhy+BE0qB9tHdyjE=
+github.com/cosmos/interchain-security/v2 v2.1.0-provider-lsm/go.mod h1:7W8hrBDV/ehMmUTFZzfSuJRRgSwrflxszbl8Jj1cuIw=
 github.com/cosmos/keyring v1.2.0 h1:8C1lBP9xhImmIabyXW4c3vFjjLiBdGCmfLUfeZlV1Yo=
 github.com/cosmos/keyring v1.2.0/go.mod h1:fc+wB5KTk9wQ9sDx0kFXB3A0MaeGHM9AwRStKOQ5vOA=
 github.com/cosmos/ledger-cosmos-go v0.12.2 h1:/XYaBlE2BJxtvpkHiBm97gFGSGmYGKunKyF3nNqAXZA=