diff --git a/Cargo.toml b/Cargo.toml
index fa9cfc53dfb..8854fa98f54 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -34,12 +34,11 @@ members = [
     "packages/token-history-contract",
     "packages/keyword-search-contract",
     "packages/wasm-drive-verify",
-    "packages/dash-platform-balance-checker"
+    "packages/dash-platform-balance-checker",
 ]
 
 exclude = ["packages/wasm-sdk"] # This one is experimental and not ready for use
 
 [workspace.package]
 
-rust-version = "1.85"
-
+rust-version = "1.89"
diff --git a/README.md b/README.md
index ea7cf2d5ff4..5df9ba74878 100644
--- a/README.md
+++ b/README.md
@@ -50,7 +50,7 @@ this repository may be used on the following networks:
 - Install prerequisites:
   - [node.js](https://nodejs.org/) v20
   - [docker](https://docs.docker.com/get-docker/) v20.10+
-  - [rust](https://www.rust-lang.org/tools/install) v1.85+, with wasm32 target (`rustup target add wasm32-unknown-unknown`)
+  - [rust](https://www.rust-lang.org/tools/install) v1.89+, with wasm32 target (`rustup target add wasm32-unknown-unknown`)
   - [protoc - protobuf compiler](https://github.com/protocolbuffers/protobuf/releases) v27.3+
     - if needed, set PROTOC environment variable to location of `protoc` binary
   - [wasm-bingen toolchain](https://rustwasm.github.io/wasm-bindgen/):
diff --git a/rust-toolchain.toml b/rust-toolchain.toml
index 66c0393df69..a8a7309fa26 100644
--- a/rust-toolchain.toml
+++ b/rust-toolchain.toml
@@ -1,5 +1,5 @@
 [toolchain]
 # Rust version the same as in /README.md
-channel = "1.85"
+channel = "1.89"
 
 targets = ["wasm32-unknown-unknown"]