diff --git a/CHANGELOG.md b/CHANGELOG.md
index d01a4a34b..ce447877a 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,11 +1,15 @@
 # Changelog
 
+*March 11, 2021*
+## v1.1.0
+A version based on the upstream release of Cosmos SDK 0.42.1.
+### Bug Fixes
+* [411](https://github.com/crypto-com/chain-main/pull/411) bank keeper correctly initialized
+
 *March 9, 2021*
 ## v1.0.1
 A version based on the upstream release of Cosmos SDK 0.42.0.
 (Note that the SDK 0.42.0 release is nearly identical to the patched SDK fork 0.41.4 that was used in 1.0.0.)
-### Improvements
-* [399](https://github.com/crypto-com/chain-main/pull/399) atomic updates to genesis file
 
 *March 4, 2021*
 ## v1.0.0
diff --git a/app/app.go b/app/app.go
index 576dff936..d17156a9b 100644
--- a/app/app.go
+++ b/app/app.go
@@ -135,11 +135,6 @@ var (
 		govtypes.ModuleName:            {authtypes.Burner},
 		ibctransfertypes.ModuleName:    {authtypes.Minter, authtypes.Burner},
 	}
-
-	// module accounts that are allowed to receive tokens
-	allowedReceivingModAcc = map[string]bool{
-		distrtypes.ModuleName: true,
-	}
 )
 
 var (
@@ -253,7 +248,7 @@ func New(
 		appCodec, keys[authtypes.StoreKey], app.GetSubspace(authtypes.ModuleName), authtypes.ProtoBaseAccount, maccPerms,
 	)
 	app.BankKeeper = bankkeeper.NewBaseKeeper(
-		appCodec, keys[banktypes.StoreKey], app.AccountKeeper, app.GetSubspace(banktypes.ModuleName), app.BlockedAddrs(),
+		appCodec, keys[banktypes.StoreKey], app.AccountKeeper, app.GetSubspace(banktypes.ModuleName), app.ModuleAccountAddrs(),
 	)
 	stakingKeeper := stakingkeeper.NewKeeper(
 		appCodec, keys[stakingtypes.StoreKey], app.AccountKeeper, app.BankKeeper, app.GetSubspace(stakingtypes.ModuleName),
@@ -469,17 +464,6 @@ func (app *ChainApp) ModuleAccountAddrs() map[string]bool {
 	return modAccAddrs
 }
 
-// BlockedAddrs returns all the app's module account addresses that are not
-// allowed to receive external tokens.
-func (app *ChainApp) BlockedAddrs() map[string]bool {
-	blockedAddrs := make(map[string]bool)
-	for acc := range maccPerms {
-		blockedAddrs[authtypes.NewModuleAddress(acc).String()] = !allowedReceivingModAcc[acc]
-	}
-
-	return blockedAddrs
-}
-
 // LegacyAmino returns ChainApp's amino codec.
 //
 // NOTE: This is solely to be used for testing purposes as it may be desirable
diff --git a/default.nix b/default.nix
index c26d1e926..a0754895c 100644
--- a/default.nix
+++ b/default.nix
@@ -22,13 +22,13 @@ let
   lib = pkgs.lib;
   build-chain-maind = { ledger_zemu ? false, network ? "mainnet" }: pkgs.buildGoModule rec {
     pname = "chain-maind";
-    version = "1.0.0";
+    version = "1.1.0";
     src = lib.cleanSourceWith {
       name = "src";
       src = lib.sourceByRegex ./. src_regexes;
     };
     subPackages = [ "cmd/chain-maind" ];
-    vendorSha256 = sha256:0rrl0slpz5z98ii6yl170jaz3n1i2ijbgc5z7wkpk3yyb3fpzb2h;
+    vendorSha256 = sha256:1xbgfn2mdc4kib2qz1lgm49zjnc4r588r3yaivmsa59yhy3xb5nx;
     runVend = true;
     outputs = [
       "out"
diff --git a/go.mod b/go.mod
index 5f40534b1..81c7efdec 100644
--- a/go.mod
+++ b/go.mod
@@ -4,7 +4,7 @@ go 1.15
 
 require (
 	github.com/confluentinc/bincover v0.1.0
-	github.com/cosmos/cosmos-sdk v0.42.0
+	github.com/cosmos/cosmos-sdk v0.42.1
 	github.com/cosmos/ledger-go v0.9.2 // indirect
 	github.com/gogo/protobuf v1.3.3
 	github.com/golang/protobuf v1.4.3
diff --git a/go.sum b/go.sum
index 19c6e9c42..0af4a6d28 100644
--- a/go.sum
+++ b/go.sum
@@ -102,8 +102,8 @@ github.com/coreos/go-systemd v0.0.0-20180511133405-39ca1b05acc7/go.mod h1:F5haX7
 github.com/coreos/go-systemd v0.0.0-20190321100706-95778dfbb74e/go.mod h1:F5haX7vjVVG0kc13fIWeqUViNPyEJxv/OmvnBo0Yme4=
 github.com/coreos/pkg v0.0.0-20160727233714-3ac0863d7acf/go.mod h1:E3G3o1h8I7cfcXa63jLwjI0eiQQMgzzUDFVpN/nH/eA=
 github.com/coreos/pkg v0.0.0-20180928190104-399ea9e2e55f/go.mod h1:E3G3o1h8I7cfcXa63jLwjI0eiQQMgzzUDFVpN/nH/eA=
-github.com/cosmos/cosmos-sdk v0.42.0 h1:oQ+rUTYZ5gUq8/YEW83NosCJ3+41iA/3/wZ3pfEIYH8=
-github.com/cosmos/cosmos-sdk v0.42.0/go.mod h1:xiLp1G8mumj82S5KLJGCAyeAlD+7VNomg/aRSJV12yk=
+github.com/cosmos/cosmos-sdk v0.42.1 h1:/0SqvXdxbHBRUFRTLdiL4VYE18DMNXd2ONhC5d90EBQ=
+github.com/cosmos/cosmos-sdk v0.42.1/go.mod h1:xiLp1G8mumj82S5KLJGCAyeAlD+7VNomg/aRSJV12yk=
 github.com/cosmos/go-bip39 v0.0.0-20180819234021-555e2067c45d h1:49RLWk1j44Xu4fjHb6JFYmeUnDORVwHNkDxaQ0ctCVU=
 github.com/cosmos/go-bip39 v0.0.0-20180819234021-555e2067c45d/go.mod h1:tSxLoYXyBmiFeKpvmq4dzayMdCjCnu8uqmCysIGBT2Y=
 github.com/cosmos/go-bip39 v1.0.0 h1:pcomnQdrdH22njcAatO0yWojsUnCO3y2tNoV1cb6hHY=
diff --git a/third_party/cosmos-sdk b/third_party/cosmos-sdk
index f999b1ff0..21814558e 160000
--- a/third_party/cosmos-sdk
+++ b/third_party/cosmos-sdk
@@ -1 +1 @@
-Subproject commit f999b1ff05a4db4a338a855713864497bedd4396
+Subproject commit 21814558eaa47b018018711e5fe16e0b16811fce