diff --git a/changelog/items/other/update-handshake.md b/changelog/items/other/update-handshake.md
new file mode 100644
index 00000000..f9296fa4
--- /dev/null
+++ b/changelog/items/other/update-handshake.md
@@ -0,0 +1 @@
+- Update handshake to use v3.0.1
diff --git a/docker-compose.yml b/docker-compose.yml
index 3f94c3ff..ca4dc51a 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -103,7 +103,7 @@ services:
     build:
       context: ./docker/handshake
       dockerfile: Dockerfile
-    command: --chain-migrate=1 --wallet-migrate=1
+    command: --chain-migrate=2 --wallet-migrate=1
     container_name: handshake
     restart: unless-stopped
     logging: *default-logging
diff --git a/docker/handshake/Dockerfile b/docker/handshake/Dockerfile
index 3aa6e50b..d7a0a6a1 100644
--- a/docker/handshake/Dockerfile
+++ b/docker/handshake/Dockerfile
@@ -3,13 +3,8 @@ FROM node:16.13.0-alpine
 WORKDIR /opt/hsd
 
 RUN apk update && apk add bash unbound-dev gmp-dev g++ gcc make python2 git
-# Checkout a specific commit until Handshake releases the next release after
-# 2.4.0 then we should switch to that tag.
-#
-# The commit we are targetting right now contains a fix for handling the chain
-# migration code for new portals.
 RUN git clone https://github.com/handshake-org/hsd.git /opt/hsd && \
-    cd /opt/hsd && git checkout 6f0927db32723d6320c8bff255a6ccf70b2ccd32 && cd -
+    cd /opt/hsd && git checkout v3.0.1 && cd -
 RUN npm install --production
 
 ENV PATH="${PATH}:/opt/hsd/bin:/opt/hsd/node_modules/.bin"