diff --git a/packages/deployments/contracts/src/cli/init/helpers/assets.ts b/packages/deployments/contracts/src/cli/init/helpers/assets.ts
index 25a5eb07e5..1d3ff12a03 100644
--- a/packages/deployments/contracts/src/cli/init/helpers/assets.ts
+++ b/packages/deployments/contracts/src/cli/init/helpers/assets.ts
@@ -61,28 +61,31 @@ export const setupAsset = async (args: {
     throw new Error(`Unable to find canonical decimals in config for ${asset.name}`);
   }
 
-  await updateIfNeeded({
-    apply,
-    deployment: home.deployments.Connext,
-    desired: asset.canonical.address,
-    read: { method: "canonicalToAdopted(bytes32)", args: [key] },
-    auth: [
-      { method: "owner", eval: (ret: string) => ret.toLowerCase() === home.signerAddress },
-      { method: "queryRole", args: [home.signerAddress], eval: (ret) => ret === 3 },
-    ],
-    write: {
-      method: "setupAsset",
-      args: [
-        [canonical.domain, canonical.id],
-        canonicalDecimals,
-        tokenName,
-        tokenSymbol,
-        asset.canonical.address,
-        constants.AddressZero,
-        asset.canonical.cap ?? "0", // 0-cap allowed on testnet only
+  // Note: bypassing in case of pseudo canonical domain
+  if (home.domain !== "11111") {
+    await updateIfNeeded({
+      apply,
+      deployment: home.deployments.Connext,
+      desired: asset.canonical.address,
+      read: { method: "canonicalToAdopted(bytes32)", args: [key] },
+      auth: [
+        { method: "owner", eval: (ret: string) => ret.toLowerCase() === home.signerAddress },
+        { method: "queryRole", args: [home.signerAddress], eval: (ret) => ret === 3 },
       ],
-    },
-  });
+      write: {
+        method: "setupAsset",
+        args: [
+          [canonical.domain, canonical.id],
+          canonicalDecimals,
+          tokenName,
+          tokenSymbol,
+          asset.canonical.address,
+          constants.AddressZero,
+          asset.canonical.cap ?? "0", // 0-cap allowed on testnet only
+        ],
+      },
+    });
+  }
 
   // Set up all the representational assets on their respective domains.
   for (const [domain, representation] of Object.entries(asset.representations)) {
diff --git a/packages/deployments/contracts/src/cli/init/init.ts b/packages/deployments/contracts/src/cli/init/init.ts
index 4268becc7d..8da46a64b0 100644
--- a/packages/deployments/contracts/src/cli/init/init.ts
+++ b/packages/deployments/contracts/src/cli/init/init.ts
@@ -1,9 +1,9 @@
 import * as fs from "fs";
 
-import { providers, Wallet, utils, constants } from "ethers";
+import { providers, Wallet, utils, constants, ethers } from "ethers";
 import * as zk from "zksync-ethers";
 import commandLineArgs from "command-line-args";
-import { ajv, domainToChainId, getGelatoRelayerAddress, getChainData } from "@connext/nxtp-utils";
+import { ajv, domainToChainId, getGelatoRelayerAddress, getChainData, mkAddress } from "@connext/nxtp-utils";
 import { HttpNetworkUserConfig } from "hardhat/types";
 
 import { canonizeId } from "../../domain";
@@ -21,6 +21,7 @@ import {
   SpokeMessagingDeployments,
   setupAsset,
   setupMessaging,
+  DomainDeployments,
 } from "./helpers";
 import { DEFAULT_INIT_CONFIG } from "./config";
 
@@ -164,6 +165,7 @@ export const sanitizeAndInit = async () => {
     }
   }
 
+  let deployer;
   // Get deployments for each domain if not specified in the config.
   for (const domain of domains) {
     const chainId = domainToChainId(Number(domain));
@@ -177,7 +179,7 @@ export const sanitizeAndInit = async () => {
     }
 
     // Convert deployer from mnemonic to Wallet.
-    let deployer;
+
     if (privateKey) {
       deployer = chainConfig.zksync ? new zk.Wallet(privateKey) : new Wallet(privateKey);
     } else {
@@ -210,6 +212,17 @@ export const sanitizeAndInit = async () => {
     });
   }
 
+  // adding pseudo domain config in networks
+
+  networks.push({
+    signerAddress: mkAddress("pseudo"),
+    chain: "11111",
+    domain: "11111",
+    rpc: new providers.JsonRpcProvider("https://dummmy.com"),
+    deployments: {} as DomainDeployments,
+    relayerFeeVault: mkAddress("pseudo"),
+  });
+
   const sanitized = {
     hub: hubDomain,
     networks,