diff --git a/integration_tests/configs/ibc_rly_evm.jsonnet b/integration_tests/configs/ibc_rly_evm.jsonnet
index b7b673d082..ac77fde468 100644
--- a/integration_tests/configs/ibc_rly_evm.jsonnet
+++ b/integration_tests/configs/ibc_rly_evm.jsonnet
@@ -4,6 +4,7 @@ ibc {
   relayer+: {
     chains: [super.chains[0] {
       precompiled_contract_address: '0x0000000000000000000000000000000000000065',
+      json_rpc_address: 'http://127.0.0.1:26701',
     }] + super.chains[1:],
   },
 }
diff --git a/integration_tests/ibc_utils.py b/integration_tests/ibc_utils.py
index a16e6ab6d0..e5593690ec 100644
--- a/integration_tests/ibc_utils.py
+++ b/integration_tests/ibc_utils.py
@@ -627,7 +627,7 @@ def check_channel_ready():
             return False
         return state == target
 
-    wait_for_fn("channel ready", check_channel_ready)
+    wait_for_fn("channel ready", check_channel_ready, timeout=30)
 
 
 def get_next_channel(cli, connid):
diff --git a/integration_tests/install_hermes.nix b/integration_tests/install_hermes.nix
deleted file mode 100644
index 9d32d5ff09..0000000000
--- a/integration_tests/install_hermes.nix
+++ /dev/null
@@ -1,36 +0,0 @@
-{ stdenv, fetchurl, lib }:
-let
-  version = "v1.6.0";
-  srcUrl = {
-    x86_64-linux = {
-      url =
-        "https://github.com/informalsystems/hermes/releases/download/${version}/hermes-${version}-x86_64-unknown-linux-gnu.tar.gz";
-      sha256 = "sha256-INJ5jiIaa5CVa/0je7Fxtcpf0+E2j7WNT7rD3ACTqts=";
-    };
-    x86_64-darwin = {
-      url =
-        "https://github.com/informalsystems/hermes/releases/download/${version}/hermes-${version}-x86_64-apple-darwin.tar.gz";
-      sha256 = "sha256-Z1LGmM3PCJFyESqmbkf1rT4ORqtc1JIVzLqb22o8fZ8=";
-    };
-    aarch64-darwin = {
-      url =
-        "https://github.com/informalsystems/hermes/releases/download/${version}/hermes-${version}-aarch64-apple-darwin.tar.gz";
-      sha256 = "sha256-xzqEu5OlG4jltmTYbO7LaRalSzdGLk7e5T9zUTheKps=";
-    };
-  }.${stdenv.system} or (throw
-    "Unsupported system: ${stdenv.system}");
-in
-stdenv.mkDerivation {
-  name = "hermes";
-  inherit version;
-  src = fetchurl srcUrl;
-  sourceRoot = ".";
-  installPhase = ''
-    echo "installing hermes ..."
-    echo $out
-    mkdir -p $out/bin
-    install -m 755 -v -D * $out/bin
-    echo `env`
-  '';
-  meta = with lib; { platforms = with platforms; linux ++ darwin; };
-}
diff --git a/integration_tests/test_ibc_rly.py b/integration_tests/test_ibc_rly.py
index 6d526a9858..d4ced56e3a 100644
--- a/integration_tests/test_ibc_rly.py
+++ b/integration_tests/test_ibc_rly.py
@@ -11,10 +11,10 @@
     cronos_transfer_source_tokens,
     cronos_transfer_source_tokens_with_proxy,
     get_balance,
+    hermes_transfer,
     ibc_denom,
     ibc_incentivized_transfer,
     prepare_network,
-    rly_transfer,
 )
 from .utils import (
     ADDRS,
@@ -53,7 +53,7 @@ def ibc(request, tmp_path_factory):
     yield from prepare_network(
         path,
         name,
-        relayer=cluster.Relayer.RLY.value,
+        relayer=cluster.Relayer.HERMES.value,
     )
 
 
@@ -229,7 +229,7 @@ def test_ibc(ibc):
     w3 = ibc.cronos.w3
     wait_for_new_blocks(ibc.cronos.cosmos_cli(), 1)
     start = w3.eth.get_block_number()
-    rly_transfer(ibc)
+    hermes_transfer(ibc)
     denom = ibc_denom(channel, src_denom)
     dst_addr = eth_to_bech32(cronos_signer2)
     old_dst_balance = get_balance(ibc.cronos, dst_addr, dst_denom)
diff --git a/nix/default.nix b/nix/default.nix
index 82383bcb6f..99076c81df 100644
--- a/nix/default.nix
+++ b/nix/default.nix
@@ -40,7 +40,7 @@ import sources.nixpkgs {
           paths = with pkgs.openssl; [ out dev ];
         };
       };
-      hermes = pkgs.callPackage ../integration_tests/install_hermes.nix { };
+      hermes = pkgs.callPackage ./hermes.nix { src = sources.ibc-rs; };
     })
     (_: pkgs: { test-env = pkgs.callPackage ./testenv.nix { }; })
     (_: pkgs: {
diff --git a/nix/hermes.nix b/nix/hermes.nix
new file mode 100644
index 0000000000..241285515d
--- /dev/null
+++ b/nix/hermes.nix
@@ -0,0 +1,35 @@
+{ src
+, lib
+, stdenv
+, darwin
+, rustPlatform
+, symlinkJoin
+, openssl
+, pkg-config
+}:
+
+rustPlatform.buildRustPackage rec {
+  name = "hermes";
+  inherit src;
+  cargoBuildFlags = "-p ibc-relayer-cli";
+  buildInputs = lib.optionals stdenv.isDarwin [
+    darwin.apple_sdk.frameworks.Security
+    pkg-config
+    openssl
+    darwin.libiconv
+    darwin.apple_sdk.frameworks.SystemConfiguration
+  ];
+  cargoLock = {
+    lockFile = "${src}/Cargo.lock";
+    outputHashes = {
+      "ibc-proto-0.38.0" = "sha256-UhpWBzraC6fMPJ0BVK6CxdrywoEayNq0tBU0N3MxmB4=";
+    };
+  };
+  doCheck = false;
+  RUSTFLAGS = "--cfg ossl111 --cfg ossl110 --cfg ossl101";
+  OPENSSL_NO_VENDOR = "1";
+  OPENSSL_DIR = symlinkJoin {
+    name = "openssl";
+    paths = with openssl; [ out dev ];
+  };
+}
diff --git a/nix/sources.json b/nix/sources.json
index fa853795ad..b30883c006 100644
--- a/nix/sources.json
+++ b/nix/sources.json
@@ -84,6 +84,18 @@
         "url": "https://github.com/crypto-org-chain/gravity-bridge/archive/d984b1562242efab5d7595d4108472ed27eba06f.tar.gz",
         "url_template": "https://github.com/<owner>/<repo>/archive/<rev>.tar.gz"
     },
+    "ibc-rs": {
+        "branch": "v1.7.0",
+        "description": "IBC modules and relayer - Formal specifications and Rust implementation",
+        "homepage": "",
+        "owner": "informalsystems",
+        "repo": "ibc-rs",
+        "rev": "0181c462486b7801d4ec720aa34f34576fcf981b",
+        "sha256": "1mwm0ia69wlshr5m5a8vblc6zh244rrxxm7np5df74jg330nyw7z",
+        "type": "tarball",
+        "url": "https://github.com/devashishdxt/hermes/archive/0181c462486b7801d4ec720aa34f34576fcf981b.tar.gz",
+        "url_template": "https://github.com/<owner>/<repo>/archive/<rev>.tar.gz"
+    },
     "niv": {
         "branch": "master",
         "description": "Easy dependency management for Nix projects",