diff --git a/contracts/token-factory/Cargo.toml b/contracts/token-factory/Cargo.toml
index 797b2959..35378a5e 100644
--- a/contracts/token-factory/Cargo.toml
+++ b/contracts/token-factory/Cargo.toml
@@ -17,7 +17,7 @@ soroban-sdk = { version = "27.0.3", features = ["testutils", "hazmat-address"] }
 proptest = "1.4"
 serde = { version = "1", features = ["derive"] }
 serde_json = "1"
-ed25519-dalek = { version = "2", default-features = false, features = ["rand_core"] }
+ed25519-dalek = { version = "3", default-features = false, features = ["rand_core"] }
 
 [[test]]
 name = "contract_replay_regression_test"