diff --git a/CHANGELOG.md b/CHANGELOG.md
index a648b62249..bdd2111120 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -6,6 +6,7 @@
 
 
 **Features:**
+- Upgrade to cosmos-sdk v0.40.0 final [\#354](https://github.com/CosmWasm/wasmd/pull/369)
 - Refactor to GRPC message server [\#366](https://github.com/CosmWasm/wasmd/pull/366)
 - Make it easy to initialize contracts in genesis file with new CLI commands[\#326](https://github.com/CosmWasm/wasmd/issues/326)
 - Upgrade to WasmVM v0.13.0 [\#358](https://github.com/CosmWasm/wasmd/pull/358)
diff --git a/go.mod b/go.mod
index c79fd25635..d1093a2752 100644
--- a/go.mod
+++ b/go.mod
@@ -4,7 +4,7 @@ go 1.15
 
 require (
 	github.com/CosmWasm/wasmvm v0.13.0
-	github.com/cosmos/cosmos-sdk v0.40.0-rc7
+	github.com/cosmos/cosmos-sdk v0.40.0
 	github.com/cosmos/iavl v0.15.3
 	github.com/dvsekhvalnov/jose2go v0.0.0-20200901110807-248326c1351b
 	github.com/gogo/protobuf v1.3.1
diff --git a/go.sum b/go.sum
index 718b8cf0fb..14d6abea44 100644
--- a/go.sum
+++ b/go.sum
@@ -104,8 +104,8 @@ 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 v0.40.0-rc7 h1:G3s+z/H++HRnM+iOqNTuv7876/nwYkpMMFxrH1dT84A=
-github.com/cosmos/cosmos-sdk v0.40.0-rc7/go.mod h1:MMEVnorMyci71WQopgvFmfz2SrDCdWgq5lBjpVclFrg=
+github.com/cosmos/cosmos-sdk v0.40.0 h1:nMPdGr5lly9HOENghgr5IRx2QDieqAncHKCSsCdEJSU=
+github.com/cosmos/cosmos-sdk v0.40.0/go.mod h1:MMEVnorMyci71WQopgvFmfz2SrDCdWgq5lBjpVclFrg=
 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=