diff --git a/packages/protocol/src/settlement/contracts/DispatchSmartContract.ts b/packages/protocol/src/settlement/contracts/DispatchSmartContract.ts
index 74d765e46..3e4de1ab1 100644
--- a/packages/protocol/src/settlement/contracts/DispatchSmartContract.ts
+++ b/packages/protocol/src/settlement/contracts/DispatchSmartContract.ts
@@ -1,6 +1,7 @@
 import {
   AccountUpdate,
   Bool,
+  DeployArgs,
   Field,
   method,
   Poseidon,
@@ -13,6 +14,7 @@ import {
   state,
   TokenId,
   UInt64,
+  Permissions,
 } from "o1js";
 import { InMemoryMerkleTreeStorage, TypedClass } from "@proto-kit/common";
 
@@ -42,7 +44,6 @@ export interface DispatchContractType {
     executedMessagesHash: Field,
     newPromisedMessagesHash: Field
   ) => Promise<void>;
-  initialize: (settlementContract: PublicKey) => Promise<void>;
   enableTokenDeposits: (
     tokenId: Field,
     bridgeContractAddress: PublicKey,
@@ -50,6 +51,12 @@ export interface DispatchContractType {
   ) => Promise<void>;
 
   promisedMessagesHash: State<Field>;
+
+  deployAndInitialize: (
+    args: DeployArgs | undefined,
+    permissions: Permissions,
+    settlementContract: PublicKey
+  ) => Promise<void>;
 }
 
 const tokenBridgeRoot = new TokenBridgeTree(
@@ -116,12 +123,6 @@ export abstract class DispatchSmartContractBase extends SmartContract {
   }
 
   protected initializeBase(settlementContract: PublicKey) {
-    this.promisedMessagesHash.getAndRequireEquals().assertEquals(Field(0));
-    this.honoredMessagesHash.getAndRequireEquals().assertEquals(Field(0));
-    this.settlementContract
-      .getAndRequireEquals()
-      .assertEquals(PublicKey.empty<typeof PublicKey>());
-
     this.promisedMessagesHash.set(ACTIONS_EMPTY_HASH);
     this.honoredMessagesHash.set(ACTIONS_EMPTY_HASH);
     this.settlementContract.set(settlementContract);
@@ -239,6 +240,18 @@ export class DispatchSmartContract
 
   @state(Field) public tokenBridgeCount = State<Field>();
 
+  public async deployAndInitialize(
+    args: DeployArgs | undefined,
+    permissions: Permissions,
+    settlementContract: PublicKey
+  ): Promise<void> {
+    await super.deploy(args);
+
+    this.self.account.permissions.set(permissions);
+
+    this.initializeBase(settlementContract);
+  }
+
   @method
   public async enableTokenDeposits(
     tokenId: Field,
@@ -263,11 +276,6 @@ export class DispatchSmartContract
     );
   }
 
-  @method
-  public async initialize(settlementContract: PublicKey) {
-    return this.initializeBase(settlementContract);
-  }
-
   @method
   public async deposit(
     amount: UInt64,
diff --git a/packages/protocol/src/settlement/contracts/SettlementSmartContract.ts b/packages/protocol/src/settlement/contracts/SettlementSmartContract.ts
index 7dc375d2f..06ee0ce68 100644
--- a/packages/protocol/src/settlement/contracts/SettlementSmartContract.ts
+++ b/packages/protocol/src/settlement/contracts/SettlementSmartContract.ts
@@ -18,13 +18,13 @@ import {
   UInt32,
   AccountUpdateForest,
   TokenContract,
-  PrivateKey,
   VerificationKey,
   Permissions,
   Struct,
   Provable,
   TokenId,
   DynamicProof,
+  DeployArgs,
 } from "o1js";
 
 import { NetworkState } from "../../model/network/NetworkState";
@@ -65,12 +65,13 @@ export class TokenMapping extends Struct({
 export interface SettlementContractType {
   authorizationField: State<Field>;
 
-  initialize: (
+  deployAndInitialize: (
+    args: DeployArgs | undefined,
+    permissions: Permissions,
     sequencer: PublicKey,
-    dispatchContract: PublicKey,
-    bridgeContract: PublicKey,
-    contractKey: PrivateKey
+    dispatchContract: PublicKey
   ) => Promise<void>;
+
   assertStateRoot: (root: Field) => AccountUpdate;
   settle: (
     blockProof: DynamicBlockProof,
@@ -245,35 +246,13 @@ export abstract class SettlementSmartContractBase extends TokenContract {
 
   protected async initializeBase(
     sequencer: PublicKey,
-    dispatchContract: PublicKey,
-    bridgeContract: PublicKey,
-    contractKey: PrivateKey
+    dispatchContract: PublicKey
   ) {
-    this.sequencerKey.getAndRequireEquals().assertEquals(Field(0));
-    this.stateRoot.getAndRequireEquals().assertEquals(Field(0));
-    this.blockHashRoot.getAndRequireEquals().assertEquals(Field(0));
-    this.networkStateHash.getAndRequireEquals().assertEquals(Field(0));
-    this.dispatchContractAddressX.getAndRequireEquals().assertEquals(Field(0));
-
     this.sequencerKey.set(sequencer.x);
     this.stateRoot.set(LinkedMerkleTree.EMPTY_ROOT);
     this.blockHashRoot.set(Field(BlockHashMerkleTree.EMPTY_ROOT));
     this.networkStateHash.set(NetworkState.empty().hash());
     this.dispatchContractAddressX.set(dispatchContract.x);
-
-    const { DispatchContract } = SettlementSmartContractBase.args;
-    const contractInstance = new DispatchContract(dispatchContract);
-    await contractInstance.initialize(this.address);
-
-    // Deploy bridge contract for $Mina
-    await this.deployTokenBridge(
-      this.tokenId,
-      bridgeContract,
-      dispatchContract,
-      true
-    );
-
-    contractKey.toPublicKey().assertEquals(this.address);
   }
 
   protected async settleBase(
@@ -449,23 +428,21 @@ export class SettlementSmartContract
 
   @state(Field) public authorizationField = State<Field>();
 
-  @method async approveBase(forest: AccountUpdateForest) {
-    this.checkZeroBalanceChange(forest);
+  public async deployAndInitialize(
+    args: DeployArgs | undefined,
+    permissions: Permissions,
+    sequencer: PublicKey,
+    dispatchContract: PublicKey
+  ): Promise<void> {
+    await super.deploy(args);
+
+    this.self.account.permissions.set(permissions);
+
+    await this.initializeBase(sequencer, dispatchContract);
   }
 
-  @method
-  public async initialize(
-    sequencer: PublicKey,
-    dispatchContract: PublicKey,
-    bridgeContract: PublicKey,
-    contractKey: PrivateKey
-  ) {
-    await this.initializeBase(
-      sequencer,
-      dispatchContract,
-      bridgeContract,
-      contractKey
-    );
+  @method async approveBase(forest: AccountUpdateForest) {
+    this.checkZeroBalanceChange(forest);
   }
 
   @method
diff --git a/packages/sequencer/src/settlement/SettlementModule.ts b/packages/sequencer/src/settlement/SettlementModule.ts
index 2da841af2..9f70ffb89 100644
--- a/packages/sequencer/src/settlement/SettlementModule.ts
+++ b/packages/sequencer/src/settlement/SettlementModule.ts
@@ -16,6 +16,7 @@ import {
   PublicKey,
   Signature,
   TokenContract,
+  TokenId,
   Transaction,
 } from "o1js";
 import { inject } from "tsyringe";
@@ -283,17 +284,25 @@ export class SettlementModule
       },
       async () => {
         AccountUpdate.fundNewAccount(feepayer, 2);
-        await settlement.deploy({
-          verificationKey:
-            verificationsKeys.SettlementSmartContract.verificationKey,
-        });
-        settlement.account.permissions.set(permissions.settlementContract());
-
-        await dispatch.deploy({
-          verificationKey:
-            verificationsKeys.DispatchSmartContract.verificationKey,
-        });
-        dispatch.account.permissions.set(permissions.dispatchContract());
+
+        await dispatch.deployAndInitialize(
+          {
+            verificationKey:
+              verificationsKeys.DispatchSmartContract.verificationKey,
+          },
+          permissions.dispatchContract(),
+          settlement.address
+        );
+
+        await settlement.deployAndInitialize(
+          {
+            verificationKey:
+              verificationsKeys.SettlementSmartContract.verificationKey,
+          },
+          permissions.settlementContract(),
+          feepayerKey.toPublicKey(),
+          dispatchKey.toPublicKey()
+        );
       }
     ).sign([feepayerKey, settlementKey, dispatchKey]);
     // Note: We can't use this.signTransaction on the above tx
@@ -315,15 +324,15 @@ export class SettlementModule
         sender: feepayer,
         nonce: nonce + 1,
         fee: this.feeStrategy.getFee(),
-        memo: "Protokit settlement init",
+        memo: "Deploy MINA bridge",
       },
       async () => {
         AccountUpdate.fundNewAccount(feepayer, 1);
-        await settlement.initialize(
-          feepayerKey.toPublicKey(),
-          dispatchKey.toPublicKey(),
+        // Deploy bridge contract for $Mina
+        await settlement.addTokenBridge(
+          TokenId.default,
           minaBridgeKey.toPublicKey(),
-          settlementKey
+          dispatchKey.toPublicKey()
         );
       }
     );