diff --git a/Cargo.toml b/Cargo.toml
index 54f2ceea1..6fab0a7a8 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -30,10 +30,10 @@ exclude = ["bindings/wasm/identity_wasm", "bindings/grpc"]
 
 [workspace.dependencies]
 bls12_381_plus = { version = "0.8.17" }
-iota_interaction = { git = "https://github.com/iotaledger/product-core.git", tag = "v0.8.15", package = "iota_interaction" }
-iota_interaction_ts = { git = "https://github.com/iotaledger/product-core.git", tag = "v0.8.15", package = "iota_interaction_ts" }
+iota_interaction = { git = "https://github.com/iotaledger/product-core.git", branch = "feat/iota-v1-21-rc-upstream-merge", package = "iota_interaction" }
+iota_interaction_ts = { git = "https://github.com/iotaledger/product-core.git", branch = "feat/iota-v1-21-rc-upstream-merge", package = "iota_interaction_ts" }
 iota-sdk-types = { git = "https://github.com/iotaledger/iota-rust-sdk.git", rev = "e19c78a1bee17e0bf85fcd5b16a2f080cef26274", features = ["hash", "serde", "schemars"] }
-product_common = { git = "https://github.com/iotaledger/product-core.git", tag = "v0.8.15", package = "product_common" }
+product_common = { git = "https://github.com/iotaledger/product-core.git", branch = "feat/iota-v1-21-rc-upstream-merge", package = "product_common" }
 serde = { version = "1.0", default-features = false, features = ["alloc", "derive"] }
 serde_json = { version = "1.0", default-features = false }
 oqs = { version = "0.10", default-features = false, features = ["sigs", "std", "vendored"] }
diff --git a/bindings/grpc/Cargo.toml b/bindings/grpc/Cargo.toml
index c32b83e65..3c6051d73 100644
--- a/bindings/grpc/Cargo.toml
+++ b/bindings/grpc/Cargo.toml
@@ -24,7 +24,7 @@ identity_iota = { path = "../../identity_iota", features = ["resolver", "sd-jwt"
 identity_jose = { path = "../../identity_jose" }
 identity_storage = { path = "../../identity_storage", features = ["memstore"] }
 identity_stronghold = { path = "../../identity_stronghold", features = ["send-sync-storage"] }
-iota-sdk = { git = "https://github.com/iotaledger/iota.git", package = "iota-sdk", tag = "v1.20.1" }
+iota-sdk = { git = "https://github.com/iotaledger/iota.git", package = "iota-sdk", rev = "96196f0da231883ec69cda04892c600ef6afa982" }
 iota-sdk-legacy = { package = "iota-sdk", version = "1.1.2", features = ["stronghold"] }
 prost = "0.13"
 rand = "0.8.5"
diff --git a/bindings/wasm/identity_wasm/Cargo.toml b/bindings/wasm/identity_wasm/Cargo.toml
index 79eb26261..c70f18222 100644
--- a/bindings/wasm/identity_wasm/Cargo.toml
+++ b/bindings/wasm/identity_wasm/Cargo.toml
@@ -26,12 +26,12 @@ identity_eddsa_verifier = { path = "../../../identity_eddsa_verifier", default-f
 iota-caip = { git = "https://github.com/iotaledger/iota-caip.git", features = ["serde"] }
 # Remove iota-sdk dependency while working on issue #1445
 iota-sdk = { version = "1.1.5", default-features = false, features = ["serde", "std"] }
-iota_interaction = { git = "https://github.com/iotaledger/product-core.git", tag = "v0.8.15", package = "iota_interaction", default-features = false }
-iota_interaction_ts = { git = "https://github.com/iotaledger/product-core.git", tag = "v0.8.15", package = "iota_interaction_ts" }
+iota_interaction = { git = "https://github.com/iotaledger/product-core.git", branch = "feat/iota-v1-21-rc-upstream-merge", package = "iota_interaction", default-features = false }
+iota_interaction_ts = { git = "https://github.com/iotaledger/product-core.git", branch = "feat/iota-v1-21-rc-upstream-merge", package = "iota_interaction_ts" }
 js-sys = { version = "0.3.61" }
 json-proof-token = "0.4"
 proc_typescript = { version = "0.1.0", path = "./proc_typescript" }
-product_common = { git = "https://github.com/iotaledger/product-core.git", tag = "v0.8.15", package = "product_common", features = ["core-client", "transaction", "bindings", "gas-station", "default-http-client"] }
+product_common = { git = "https://github.com/iotaledger/product-core.git", branch = "feat/iota-v1-21-rc-upstream-merge", package = "product_common", features = ["core-client", "transaction", "bindings", "gas-station", "default-http-client"] }
 secret-storage = { git = "https://github.com/iotaledger/secret-storage.git", default-features = false, tag = "v0.3.0" }
 serde = { version = "1.0", features = ["derive"] }
 serde-wasm-bindgen = "0.6.5"
diff --git a/bindings/wasm/identity_wasm/package-lock.json b/bindings/wasm/identity_wasm/package-lock.json
index f1725e202..3572d0b30 100644
--- a/bindings/wasm/identity_wasm/package-lock.json
+++ b/bindings/wasm/identity_wasm/package-lock.json
@@ -45,7 +45,7 @@
         "node": ">=20"
       },
       "peerDependencies": {
-        "@iota/iota-sdk": "^1.11.0"
+        "@iota/iota-sdk": "^1.13.0"
       }
     },
     "node_modules/@0no-co/graphql.web": {
@@ -243,9 +243,9 @@
       }
     },
     "node_modules/@iota/bcs": {
-      "version": "1.5.0",
-      "resolved": "https://registry.npmjs.org/@iota/bcs/-/bcs-1.5.0.tgz",
-      "integrity": "sha512-/hv395YtUcRNLY00v7Cl2O+KvVUaUajg4OucZENgSE4Xu1ygUGsLD3dU5FixOUVOn7Abo+n7+KYr9PE/1dsvWg==",
+      "version": "1.6.0",
+      "resolved": "https://registry.npmjs.org/@iota/bcs/-/bcs-1.6.0.tgz",
+      "integrity": "sha512-H8I9g+aPBQigSsHkydnnR6wmmTwOwI7iu/TghTOz6tikqVFM09cA2JlDQXRLDTSkW3Qlz6gONyVKzrBhoTkHxQ==",
       "license": "Apache-2.0",
       "peer": true,
       "dependencies": {
@@ -265,14 +265,14 @@
       }
     },
     "node_modules/@iota/iota-sdk": {
-      "version": "1.11.0",
-      "resolved": "https://registry.npmjs.org/@iota/iota-sdk/-/iota-sdk-1.11.0.tgz",
-      "integrity": "sha512-Fveg/4euheaBUzU1ybPyFGe7sSfLFUjLNHhPjNFUmSBOMR+l9q3LU1QdN2sLElcmgJZ+BLxAEmL8TZ0eX3Khpw==",
+      "version": "1.13.0",
+      "resolved": "https://registry.npmjs.org/@iota/iota-sdk/-/iota-sdk-1.13.0.tgz",
+      "integrity": "sha512-ay19PRu0z+1W9tnmGyexIR/Sp0Rpt7H0mUCuEZQ5B+7O6Qf61+Co8TrR1SRIrKwD7Fu90jPy5y5MwFXy/vLwKg==",
       "license": "Apache-2.0",
       "peer": true,
       "dependencies": {
         "@graphql-typed-document-node/core": "^3.2.0",
-        "@iota/bcs": "1.5.0",
+        "@iota/bcs": "1.6.0",
         "@noble/curves": "^1.4.2",
         "@noble/hashes": "^1.4.0",
         "@scure/base": "^1.2.4",
diff --git a/bindings/wasm/identity_wasm/package.json b/bindings/wasm/identity_wasm/package.json
index 9a58f579c..506a9478c 100644
--- a/bindings/wasm/identity_wasm/package.json
+++ b/bindings/wasm/identity_wasm/package.json
@@ -85,7 +85,7 @@
     "node-fetch": "^2.6.7"
   },
   "peerDependencies": {
-    "@iota/iota-sdk": "^1.11.0"
+    "@iota/iota-sdk": "^1.13.0"
   },
   "engines": {
     "node": ">=20"
diff --git a/examples/Cargo.toml b/examples/Cargo.toml
index 97aac805e..6a3a04ebd 100644
--- a/examples/Cargo.toml
+++ b/examples/Cargo.toml
@@ -12,11 +12,11 @@ identity_pqc_verifier = { path = "../identity_pqc_verifier", default-features =
 identity_storage = { path = "../identity_storage", features = ["sd-jwt-signer"] }
 identity_stronghold = { path = "../identity_stronghold", default-features = false, features = ["send-sync-storage"] }
 iota-caip = { git = "https://github.com/iotaledger/iota-caip.git", features = ["iota", "resolver"] }
-iota-sdk = { git = "https://github.com/iotaledger/iota.git", package = "iota-sdk", tag = "v1.20.1" }
+iota-sdk = { git = "https://github.com/iotaledger/iota.git", package = "iota-sdk", rev = "96196f0da231883ec69cda04892c600ef6afa982" }
 iota-sdk-legacy = { package = "iota-sdk", version = "1.0", default-features = false, features = ["tls", "client", "stronghold"] }
 json-proof-token.workspace = true
-notarization = { git = "https://github.com/iotaledger/notarization.git", tag = "v0.1.19", features = ["irl"] }
-product_common = { git = "https://github.com/iotaledger/product-core.git", tag = "v0.8.15", package = "product_common", features = ["core-client", "transaction"] }
+notarization = { git = "https://github.com/iotaledger/notarization.git", branch = "feat/iota-v1-21", features = ["irl"] }
+product_common = { git = "https://github.com/iotaledger/product-core.git", branch = "feat/iota-v1-21-rc-upstream-merge", package = "product_common", features = ["core-client", "transaction"] }
 rand = "0.8.5"
 sd-jwt = { package = "sd-jwt-payload", version = "0.5.1", default-features = false, features = ["sha"] }
 secret-storage = { git = "https://github.com/iotaledger/secret-storage.git", tag = "v0.3.0" }
diff --git a/identity_iota/Cargo.toml b/identity_iota/Cargo.toml
index e7f71c4c3..991060bfd 100644
--- a/identity_iota/Cargo.toml
+++ b/identity_iota/Cargo.toml
@@ -24,13 +24,13 @@ identity_verification = { version = "=1.9.5-beta.1", path = "../identity_verific
 iota_interaction.workspace = true
 
 [target.'cfg(target_arch = "wasm32")'.dependencies]
-iota_interaction = { git = "https://github.com/iotaledger/product-core.git", tag = "v0.8.15", package = "iota_interaction", default-features = false }
+iota_interaction = { git = "https://github.com/iotaledger/product-core.git", branch = "feat/iota-v1-21-rc-upstream-merge", package = "iota_interaction", default-features = false }
 
 [dev-dependencies]
 # required for doc test
 anyhow = "1.0.64"
 identity_iota = { version = "=1.9.5-beta.1", path = "./", features = ["memstore"] }
-iota-sdk = { git = "https://github.com/iotaledger/iota.git", package = "iota-sdk", tag = "v1.20.1" }
+iota-sdk = { git = "https://github.com/iotaledger/iota.git", package = "iota-sdk", rev = "96196f0da231883ec69cda04892c600ef6afa982" }
 rand = "0.8.5"
 secret-storage = { git = "https://github.com/iotaledger/secret-storage.git", tag = "v0.3.0" }
 tokio = { version = "1.49.0", features = ["full"] }
diff --git a/identity_iota_core/Cargo.toml b/identity_iota_core/Cargo.toml
index ed5f57642..3e75743bc 100644
--- a/identity_iota_core/Cargo.toml
+++ b/identity_iota_core/Cargo.toml
@@ -24,7 +24,7 @@ num-derive = { version = "0.4", default-features = false }
 num-traits = { version = "0.2", default-features = false, features = ["std"] }
 once_cell = { version = "1.18", default-features = false, features = ["std"] }
 prefix-hex = { version = "0.7", default-features = false }
-product_common = { git = "https://github.com/iotaledger/product-core.git", tag = "v0.8.15", package = "product_common", default-features = false }
+product_common = { git = "https://github.com/iotaledger/product-core.git", branch = "feat/iota-v1-21-rc-upstream-merge", package = "product_common", default-features = false }
 ref-cast = { version = "1.0.14", default-features = false }
 serde.workspace = true
 serde_json.workspace = true
@@ -47,15 +47,15 @@ secret-storage = { git = "https://github.com/iotaledger/secret-storage.git", tag
 serde-aux = { version = "4.5.0", optional = true }
 
 [target.'cfg(not(target_arch = "wasm32"))'.dependencies]
-iota-config = { git = "https://github.com/iotaledger/iota.git", package = "iota-config", tag = "v1.20.1", optional = true }
-iota_interaction = { git = "https://github.com/iotaledger/product-core.git", tag = "v0.8.15", package = "iota_interaction" }
-iota_interaction_rust = { git = "https://github.com/iotaledger/product-core.git", tag = "v0.8.15", package = "iota_interaction_rust" }
-iota-sdk = { git = "https://github.com/iotaledger/iota.git", package = "iota-sdk", tag = "v1.20.1" }
-move-core-types = { git = "https://github.com/iotaledger/iota.git", package = "move-core-types", tag = "v1.20.1", optional = true }
+iota-config = { git = "https://github.com/iotaledger/iota.git", package = "iota-config", rev = "96196f0da231883ec69cda04892c600ef6afa982", optional = true }
+iota_interaction = { git = "https://github.com/iotaledger/product-core.git", branch = "feat/iota-v1-21-rc-upstream-merge", package = "iota_interaction" }
+iota_interaction_rust = { git = "https://github.com/iotaledger/product-core.git", branch = "feat/iota-v1-21-rc-upstream-merge", package = "iota_interaction_rust" }
+iota-sdk = { git = "https://github.com/iotaledger/iota.git", package = "iota-sdk", rev = "96196f0da231883ec69cda04892c600ef6afa982" }
+move-core-types = { git = "https://github.com/iotaledger/iota.git", package = "move-core-types", rev = "96196f0da231883ec69cda04892c600ef6afa982", optional = true }
 tokio = { version = "1.49.0", default-features = false, features = ["macros", "sync", "rt", "process"] }
 
 [target.'cfg(target_arch = "wasm32")'.dependencies]
-iota_interaction = { git = "https://github.com/iotaledger/product-core.git", tag = "v0.8.15", package = "iota_interaction", default-features = false }
+iota_interaction = { git = "https://github.com/iotaledger/product-core.git", branch = "feat/iota-v1-21-rc-upstream-merge", package = "iota_interaction", default-features = false }
 
 # Dependency iota_interaction_ts is always used on wasm32 platform. It is not controlled by the "iota-client" feature
 # because it's unclear how to implement this. wasm32 build will most probably always use the "iota-client" feature
diff --git a/identity_jose/Cargo.toml b/identity_jose/Cargo.toml
index 7fc88a197..64764cb3a 100644
--- a/identity_jose/Cargo.toml
+++ b/identity_jose/Cargo.toml
@@ -25,10 +25,10 @@ thiserror.workspace = true
 zeroize = { version = "1.6", default-features = false, features = ["std", "zeroize_derive"] }
 
 [target.'cfg(not(target_arch = "wasm32"))'.dependencies]
-iota_interaction = { git = "https://github.com/iotaledger/product-core.git", tag = "v0.8.15", package = "iota_interaction" }
+iota_interaction = { git = "https://github.com/iotaledger/product-core.git", branch = "feat/iota-v1-21-rc-upstream-merge", package = "iota_interaction" }
 
 [target.'cfg(target_arch = "wasm32")'.dependencies]
-iota_interaction = { git = "https://github.com/iotaledger/product-core.git", tag = "v0.8.15", package = "iota_interaction", default-features = false }
+iota_interaction = { git = "https://github.com/iotaledger/product-core.git", branch = "feat/iota-v1-21-rc-upstream-merge", package = "iota_interaction", default-features = false }
 
 [dev-dependencies]
 iota-crypto = { version = "0.23", features = ["ed25519", "random", "hmac"] }
diff --git a/identity_storage/Cargo.toml b/identity_storage/Cargo.toml
index 65822a747..fae3b7788 100644
--- a/identity_storage/Cargo.toml
+++ b/identity_storage/Cargo.toml
@@ -40,17 +40,17 @@ tokio = { version = "1.49.0", default-features = false, features = ["macros", "s
 zkryptium = { workspace = true, optional = true }
 
 [target.'cfg(not(target_arch = "wasm32"))'.dependencies]
-iota_interaction = { git = "https://github.com/iotaledger/product-core.git", tag = "v0.8.15", package = "iota_interaction", optional = true }
+iota_interaction = { git = "https://github.com/iotaledger/product-core.git", branch = "feat/iota-v1-21-rc-upstream-merge", package = "iota_interaction", optional = true }
 
 [target.'cfg(target_arch = "wasm32")'.dependencies]
-iota_interaction = { git = "https://github.com/iotaledger/product-core.git", tag = "v0.8.15", package = "iota_interaction", default-features = false, optional = true }
+iota_interaction = { git = "https://github.com/iotaledger/product-core.git", branch = "feat/iota-v1-21-rc-upstream-merge", package = "iota_interaction", default-features = false, optional = true }
 
 [dev-dependencies]
 identity_credential = { version = "=1.9.5-beta.1", path = "../identity_credential", features = ["revocation-bitmap"] }
 identity_ecdsa_verifier = { version = "=1.9.5-beta.1", path = "../identity_ecdsa_verifier", default-features = false, features = ["es256"] }
 identity_eddsa_verifier = { version = "=1.9.5-beta.1", path = "../identity_eddsa_verifier", default-features = false, features = ["ed25519"] }
 once_cell = { version = "1.18", default-features = false }
-product_common = { git = "https://github.com/iotaledger/product-core.git", tag = "v0.8.15", package = "product_common", default-features = false }
+product_common = { git = "https://github.com/iotaledger/product-core.git", branch = "feat/iota-v1-21-rc-upstream-merge", package = "product_common", default-features = false }
 tokio = { version = "1.49.0", default-features = false, features = ["macros", "sync", "rt"] }
 
 [features]