diff --git a/changelog.md b/changelog.md
index 7a58845753..bd207b53d6 100644
--- a/changelog.md
+++ b/changelog.md
@@ -15,6 +15,7 @@
 * [3534] (https://github.com/zeta-chain/node/pull/3534) - Add Sui deposit & depositAndCall
 * [3541](https://github.com/zeta-chain/node/pull/3541) - implement `MsgUpdateZRC20Name` to update the name or symbol of a ZRC20 token
 * [3520](https://github.com/zeta-chain/node/pull/3520) - SPL withdraw and call integration
+* [3439](https://github.com/zeta-chain/node/pull/3439) - use protocol contracts V2 with TON deposits
 * [3522](https://github.com/zeta-chain/node/pull/3522) - add `MsgDisableFastConfirmation` to disable fast confirmation. This message can be triggered by the emergency policy.
 
 ### Refactor
diff --git a/e2e/runner/ton.go b/e2e/runner/ton.go
index 369bfa0df3..97b0a6d472 100644
--- a/e2e/runner/ton.go
+++ b/e2e/runner/ton.go
@@ -113,12 +113,9 @@ func (r *E2ERunner) TONDepositAndCall(
 	}
 
 	filter := func(cctx *cctypes.CrossChainTx) bool {
-		memo := zevmRecipient.Bytes()
-		memo = append(memo, callData...)
-
 		return cctx.InboundParams.SenderChainId == chain.ChainId &&
 			cctx.InboundParams.Sender == sender.GetAddress().ToRaw() &&
-			cctx.RelayedMessage == hex.EncodeToString(memo)
+			cctx.RelayedMessage == hex.EncodeToString(callData)
 	}
 
 	// Wait for cctx
diff --git a/pkg/contracts/ton/gateway_msg.go b/pkg/contracts/ton/gateway_msg.go
index 3a4716e0b4..fd68ca0eec 100644
--- a/pkg/contracts/ton/gateway_msg.go
+++ b/pkg/contracts/ton/gateway_msg.go
@@ -57,11 +57,6 @@ type Deposit struct {
 	Recipient eth.Address
 }
 
-// Memo casts deposit to memo bytes
-func (d Deposit) Memo() []byte {
-	return d.Recipient.Bytes()
-}
-
 // AsBody casts struct as internal message body.
 func (d Deposit) AsBody() (*boc.Cell, error) {
 	b := boc.NewCell()
@@ -75,17 +70,6 @@ type DepositAndCall struct {
 	CallData []byte
 }
 
-// Memo casts deposit to call to memo bytes
-func (d DepositAndCall) Memo() []byte {
-	recipient := d.Recipient.Bytes()
-	out := make([]byte, 0, len(recipient)+len(d.CallData))
-
-	out = append(out, recipient...)
-	out = append(out, d.CallData...)
-
-	return out
-}
-
 // AsBody casts struct to internal message body.
 func (d DepositAndCall) AsBody() (*boc.Cell, error) {
 	b := boc.NewCell()
diff --git a/testutil/sample/ton_test.go b/testutil/sample/ton_test.go
index 73474db0d4..48e45047ff 100644
--- a/testutil/sample/ton_test.go
+++ b/testutil/sample/ton_test.go
@@ -59,7 +59,6 @@ func TestTONSamples(t *testing.T) {
 		require.Equal(t, int(d.Amount.Uint64()), int(d2.Amount.Uint64()))
 		require.Equal(t, d.Sender.ToRaw(), d2.Sender.ToRaw())
 		require.Equal(t, d.Recipient.Hex(), d2.Recipient.Hex())
-		require.Equal(t, d.Memo(), d2.Memo())
 	})
 
 	t.Run("Deposit and call", func(t *testing.T) {
@@ -88,7 +87,6 @@ func TestTONSamples(t *testing.T) {
 		require.Equal(t, d.Sender.ToRaw(), d2.Sender.ToRaw())
 		require.Equal(t, d.Recipient.Hex(), d2.Recipient.Hex())
 		require.Equal(t, d.CallData, d2.CallData)
-		require.Equal(t, d.Memo(), d2.Memo())
 	})
 
 }
diff --git a/zetaclient/chains/ton/observer/inbound.go b/zetaclient/chains/ton/observer/inbound.go
index 2d4ecfb124..de0510dd18 100644
--- a/zetaclient/chains/ton/observer/inbound.go
+++ b/zetaclient/chains/ton/observer/inbound.go
@@ -177,6 +177,15 @@ func (ob *Observer) ProcessInboundTrackers(ctx context.Context) error {
 	return nil
 }
 
+// inboundData represents extract data from a TON inbound deposit
+type inboundData struct {
+	sender         string
+	amount         math.Uint
+	receiver       string
+	message        []byte
+	isContractCall bool
+}
+
 // Sends PostVoteInbound to zetacore
 func (ob *Observer) voteInbound(ctx context.Context, tx *toncontracts.Transaction) (string, error) {
 	// noop
@@ -193,44 +202,52 @@ func (ob *Observer) voteInbound(ctx context.Context, tx *toncontracts.Transactio
 		return "", errors.Wrapf(err, "unable to get block header %s", tx.BlockID.String())
 	}
 
-	sender, amount, memo, err := extractInboundData(tx)
+	inboundData, err := extractInboundData(tx)
 	if err != nil {
 		return "", err
 	}
 
 	seqno := blockHeader.MinRefMcSeqno
 
-	return ob.voteDeposit(ctx, tx, sender, amount, memo, seqno)
+	return ob.voteDeposit(ctx, tx, inboundData, seqno)
 }
 
 // extractInboundData parses Gateway tx into deposit (TON sender, amount, memo)
-func extractInboundData(tx *toncontracts.Transaction) (string, math.Uint, []byte, error) {
+func extractInboundData(tx *toncontracts.Transaction) (inboundData, error) {
 	switch tx.Operation {
 	case toncontracts.OpDeposit:
 		d, err := tx.Deposit()
 		if err != nil {
-			return "", math.NewUint(0), nil, err
+			return inboundData{}, err
 		}
-
-		return d.Sender.ToRaw(), d.Amount, d.Memo(), nil
+		return inboundData{
+			sender:         d.Sender.ToRaw(),
+			amount:         d.Amount,
+			receiver:       d.Recipient.Hex(),
+			message:        []byte{},
+			isContractCall: false,
+		}, nil
 	case toncontracts.OpDepositAndCall:
 		d, err := tx.DepositAndCall()
 		if err != nil {
-			return "", math.NewUint(0), nil, err
+			return inboundData{}, err
 		}
-
-		return d.Sender.ToRaw(), d.Amount, d.Memo(), nil
+		return inboundData{
+			sender:         d.Sender.ToRaw(),
+			amount:         d.Amount,
+			receiver:       d.Recipient.Hex(),
+			message:        d.CallData,
+			isContractCall: true,
+		}, nil
 	default:
-		return "", math.NewUint(0), nil, fmt.Errorf("unknown operation %d", tx.Operation)
+		return inboundData{}, fmt.Errorf("unknown operation %d", tx.Operation)
 	}
 }
 
 func (ob *Observer) voteDeposit(
 	ctx context.Context,
 	tx *toncontracts.Transaction,
-	sender string,
-	amount math.Uint,
-	memo []byte,
+	inboundData inboundData,
 	seqno uint32,
 ) (string, error) {
 	const (
@@ -246,25 +263,27 @@ func (ob *Observer) voteDeposit(
 		inboundHash     = liteapi.TransactionHashToString(tx.Lt, ton.Bits256(tx.Hash()))
 	)
 
-	// TODO: use protocol contract v2 for deposit
-	// https://github.com/zeta-chain/node/issues/2967
-
-	msg := zetacore.GetInboundVoteMessage(
-		sender,
+	// create the inbound message
+	msg := types.NewMsgVoteInbound(
+		operatorAddress.String(),
+		inboundData.sender,
 		ob.Chain().ChainId,
-		sender,
-		sender,
+		inboundData.sender,
+		inboundData.receiver,
 		ob.ZetacoreClient().Chain().ChainId,
-		amount,
-		hex.EncodeToString(memo),
+		inboundData.amount,
+		hex.EncodeToString(inboundData.message),
 		inboundHash,
 		uint64(seqno),
 		gasLimit,
 		coinType,
 		asset,
-		operatorAddress.String(),
 		eventIndex,
+		types.ProtocolContractVersion_V2,
+		false, // not used
 		types.InboundStatus_SUCCESS,
+		types.ConfirmationMode_SAFE,
+		types.WithCrossChainCall(inboundData.isContractCall),
 	)
 
 	return ob.PostVoteInbound(ctx, msg, retryGasLimit)
diff --git a/zetaclient/chains/ton/observer/inbound_test.go b/zetaclient/chains/ton/observer/inbound_test.go
index 10b6443fb3..ae46c07c22 100644
--- a/zetaclient/chains/ton/observer/inbound_test.go
+++ b/zetaclient/chains/ton/observer/inbound_test.go
@@ -2,7 +2,6 @@ package observer
 
 import (
 	"encoding/hex"
-	"fmt"
 	"testing"
 
 	"github.com/pkg/errors"
@@ -163,7 +162,9 @@ func TestInbound(t *testing.T) {
 
 		assert.Equal(t, "", cctx.Asset)
 		assert.Equal(t, deposit.Amount.Uint64(), cctx.Amount.Uint64())
-		assert.Equal(t, hex.EncodeToString(deposit.Recipient.Bytes()), cctx.Message)
+		assert.Equal(t, "", cctx.Message)
+		assert.Equal(t, deposit.Recipient.Hex(), cctx.Receiver)
+		assert.False(t, cctx.IsCrossChainCall)
 
 		// Check hash & block height
 		expectedHash := liteapi.TransactionHashToString(depositTX.Lt, txHash(depositTX))
@@ -225,13 +226,9 @@ func TestInbound(t *testing.T) {
 
 		assert.Equal(t, "", cctx.Asset)
 		assert.Equal(t, depositAndCall.Amount.Uint64(), cctx.Amount.Uint64())
-
-		expectedMessage := hex.EncodeToString(append(
-			depositAndCall.Recipient.Bytes(),
-			[]byte(callData)...,
-		))
-
-		assert.Equal(t, expectedMessage, cctx.Message)
+		assert.Equal(t, hex.EncodeToString([]byte(callData)), cctx.Message)
+		assert.Equal(t, depositAndCall.Recipient.Hex(), cctx.Receiver)
+		assert.True(t, cctx.IsCrossChainCall)
 
 		// Check hash & block height
 		expectedHash := liteapi.TransactionHashToString(depositAndCallTX.Lt, txHash(depositAndCallTX))
@@ -436,9 +433,8 @@ func TestInboundTracker(t *testing.T) {
 	vote := ts.votesBag[0]
 	assert.Equal(t, deposit.Amount, vote.Amount)
 	assert.Equal(t, deposit.Sender.ToRaw(), vote.Sender)
-
-	// zevm recipient bytes == memo bytes
-	assert.Equal(t, fmt.Sprintf("%x", deposit.Recipient), vote.Message)
+	assert.Equal(t, "", vote.Message)
+	assert.Equal(t, deposit.Recipient.Hex(), vote.Receiver)
 }
 
 func txHash(tx ton.Transaction) ton.Bits256 {