diff --git a/client/config/config.go b/client/config/config.go
index d247927c6e55a..e3a2a8646d939 100644
--- a/client/config/config.go
+++ b/client/config/config.go
@@ -46,6 +46,26 @@ func (c *ClientConfig) SetBroadcastMode(broadcastMode string) {
 	c.BroadcastMode = broadcastMode
 }
 
+// ReadDefaultValuesFromDefaultClientConfig reads default values from default client.toml file and updates them in client.Context
+// The client.toml is then discarded.
+func ReadDefaultValuesFromDefaultClientConfig(ctx client.Context) (client.Context, error) {
+	prevHomeDir := ctx.HomeDir
+	dir, err := os.MkdirTemp("", "simapp")
+	if err != nil {
+		return ctx, fmt.Errorf("couldn't create temp dir: %w", err)
+	}
+	defer os.RemoveAll(dir)
+
+	ctx.HomeDir = dir
+	ctx, err = ReadFromClientConfig(ctx)
+	if err != nil {
+		return ctx, fmt.Errorf("couldn't create client config: %w", err)
+	}
+
+	ctx.HomeDir = prevHomeDir
+	return ctx, nil
+}
+
 // ReadFromClientConfig reads values from client.toml file and updates them in client Context
 func ReadFromClientConfig(ctx client.Context) (client.Context, error) {
 	configPath := filepath.Join(ctx.HomeDir, "config")
diff --git a/simapp/simd/cmd/root.go b/simapp/simd/cmd/root.go
index 7260f000c39f5..a25281e13429f 100644
--- a/simapp/simd/cmd/root.go
+++ b/simapp/simd/cmd/root.go
@@ -60,7 +60,7 @@ func NewRootCmd() *cobra.Command {
 				return err
 			}
 
-			initClientCtx, err = config.ReadFromClientConfig(initClientCtx)
+			initClientCtx, err = config.ReadDefaultValuesFromDefaultClientConfig(initClientCtx)
 			if err != nil {
 				return err
 			}
diff --git a/simapp/simd/cmd/root_v2.go b/simapp/simd/cmd/root_v2.go
index e6512b452352c..cc0e5946338f8 100644
--- a/simapp/simd/cmd/root_v2.go
+++ b/simapp/simd/cmd/root_v2.go
@@ -68,7 +68,7 @@ func NewRootCmd() *cobra.Command {
 				return err
 			}
 
-			clientCtx, err = config.ReadFromClientConfig(clientCtx)
+			clientCtx, err = config.ReadDefaultValuesFromDefaultClientConfig(clientCtx)
 			if err != nil {
 				return err
 			}