diff --git a/.github/workflows/testnode.bash b/.github/workflows/testnode.bash
index 29525cb..b6d1f59 100755
--- a/.github/workflows/testnode.bash
+++ b/.github/workflows/testnode.bash
@@ -5,6 +5,7 @@
 # Start the test node and get PID, to terminate it once send-l2 is done.
 cd ${GITHUB_WORKSPACE}
 
+# TODO once develop is merged into nitro-contract's master, remove the NITRO_CONTRACTS_BRANCH env var
 ./test-node.bash --init-force --detach
 
 START=$(date +%s)
diff --git a/docker-compose.yaml b/docker-compose.yaml
index ee8eb4b..1289560 100644
--- a/docker-compose.yaml
+++ b/docker-compose.yaml
@@ -328,7 +328,10 @@ services:
       - geth
       - sequencer
     pid: host
-    build: tokenbridge/
+    build:
+      context: tokenbridge/
+      args:
+        TOKEN_BRIDGE_BRANCH: ${TOKEN_BRIDGE_BRANCH:-}
     environment:
       - ARB_URL=http://sequencer:8547
       - ETH_URL=http://geth:8545
@@ -336,6 +339,19 @@ services:
       - "tokenbridge-data:/workspace"
       - /var/run/docker.sock:/var/run/docker.sock
 
+  rollupcreator:
+    depends_on:
+      - geth
+      - sequencer
+    pid: host
+    build:
+      context: rollupcreator/
+      args:
+        NITRO_CONTRACTS_BRANCH: ${NITRO_CONTRACTS_BRANCH:-}
+    volumes:
+      - "config:/config"
+      - /var/run/docker.sock:/var/run/docker.sock
+
 volumes:
   l1data:
   consensus:
diff --git a/rollupcreator/Dockerfile b/rollupcreator/Dockerfile
new file mode 100644
index 0000000..17b065a
--- /dev/null
+++ b/rollupcreator/Dockerfile
@@ -0,0 +1,14 @@
+FROM node:16-bullseye-slim
+ARG NITRO_CONTRACTS_BRANCH=main
+RUN apt-get update && \
+    apt-get install -y git docker.io python3 build-essential curl jq
+WORKDIR /workspace  
+RUN git clone --no-checkout https://github.com/OffchainLabs/nitro-contracts.git ./
+RUN git checkout ${NITRO_CONTRACTS_BRANCH}
+RUN curl -L https://foundry.paradigm.xyz | bash
+ENV PATH="${PATH}:/root/.foundry/bin"
+RUN foundryup
+RUN touch scripts/config.ts
+RUN yarn install
+RUN yarn build:all
+ENTRYPOINT ["yarn"]
diff --git a/scripts/ethcommands.ts b/scripts/ethcommands.ts
index 00fdbb1..82eeadb 100644
--- a/scripts/ethcommands.ts
+++ b/scripts/ethcommands.ts
@@ -279,6 +279,38 @@ export const createERC20Command = {
   },
 };
 
+export const transferERC20Command = {
+  command: "transfer-erc20",
+  describe: "transfers ERC20 token",
+  builder: {
+    token: {
+      string: true,
+      describe: "token address",
+    },
+    amount: {
+      string: true,
+      describe: "amount to transfer",
+    },
+    from: {
+      string: true,
+      describe: "account (see general help)",
+    },
+    to: {
+      string: true,
+      describe: "address (see general help)",
+    },
+  },
+  handler: async (argv: any) => {
+    console.log("transfer-erc20");
+
+    argv.provider = new ethers.providers.WebSocketProvider(argv.l2url);
+    const account = namedAccount(argv.from).connect(argv.provider);
+    const tokenContract = new ethers.Contract(argv.token, ERC20.abi, account);
+    const decimals = await tokenContract.decimals();
+    await(await tokenContract.transfer(namedAccount(argv.to).address, ethers.utils.parseUnits(argv.amount, decimals))).wait();
+    argv.provider.destroy();
+  },
+};
 
 export const sendL1Command = {
   command: "send-l1",
diff --git a/scripts/index.ts b/scripts/index.ts
index 9f25c6e..2fd189f 100644
--- a/scripts/index.ts
+++ b/scripts/index.ts
@@ -14,6 +14,7 @@ import {
   bridgeNativeTokenToL3Command,
   bridgeToL3Command,
   createERC20Command,
+  transferERC20Command,
   sendL1Command,
   sendL2Command,
   sendL3Command,
@@ -35,6 +36,7 @@ async function main() {
     .command(bridgeToL3Command)
     .command(bridgeNativeTokenToL3Command)
     .command(createERC20Command)
+    .command(transferERC20Command)
     .command(sendL1Command)
     .command(sendL2Command)
     .command(sendL3Command)
diff --git a/test-node.bash b/test-node.bash
index 1e8506a..0b5f3d8 100755
--- a/test-node.bash
+++ b/test-node.bash
@@ -5,6 +5,20 @@ set -e
 NITRO_NODE_VERSION=offchainlabs/nitro-node:v2.3.3-6a1c1a7-dev
 BLOCKSCOUT_VERSION=offchainlabs/blockscout:v1.0.0-c8db5b1
 
+# This commit matches the v1.2.1 contracts, with additional fixes for rollup deployment script.
+# Once v1.2.2 is released, we can switch to that version.
+DEFAULT_NITRO_CONTRACTS_VERSION="a00d2faac01e050339ff7b0ac5bc91df06e8dbff"
+DEFAULT_TOKEN_BRIDGE_VERSION="v1.2.1"
+
+# Set default versions if not overriden by provided env vars
+: ${NITRO_CONTRACTS_BRANCH:=$DEFAULT_NITRO_CONTRACTS_VERSION}
+: ${TOKEN_BRIDGE_BRANCH:=$DEFAULT_TOKEN_BRIDGE_VERSION}
+export NITRO_CONTRACTS_BRANCH
+export TOKEN_BRIDGE_BRANCH
+
+echo "Using NITRO_CONTRACTS_BRANCH: $NITRO_CONTRACTS_BRANCH"
+echo "Using TOKEN_BRIDGE_BRANCH: $TOKEN_BRIDGE_BRANCH"
+
 mydir=`dirname $0`
 cd "$mydir"
 
@@ -259,7 +273,8 @@ if $force_build; then
       docker build blockscout -t blockscout -f blockscout/docker/Dockerfile
     fi
   fi
-  LOCAL_BUILD_NODES=scripts
+
+  LOCAL_BUILD_NODES="scripts rollupcreator"
   if $tokenbridge || $l3_token_bridge; then
     LOCAL_BUILD_NODES="$LOCAL_BUILD_NODES tokenbridge"
   fi
@@ -344,9 +359,12 @@ if $force_init; then
 
     sequenceraddress=`docker compose run scripts print-address --account sequencer | tail -n 1 | tr -d '\r\n'`
     l2ownerAddress=`docker compose run scripts print-address --account l2owner | tail -n 1 | tr -d '\r\n'`
+    l2ownerKey=`docker compose run scripts print-private-key --account l2owner | tail -n 1 | tr -d '\r\n'`
+    wasmroot=`docker compose run --entrypoint sh sequencer -c "cat /home/user/target/machines/latest/module-root.txt"`
 
-    docker compose run --entrypoint /usr/local/bin/deploy sequencer --l1conn ws://geth:8546 --l1keystore /home/user/l1keystore --sequencerAddress $sequenceraddress --ownerAddress $l2ownerAddress --l1DeployAccount $l2ownerAddress --l1deployment /config/deployment.json --authorizevalidators 10 --wasmrootpath /home/user/target/machines --l1chainid=$l1chainid --l2chainconfig /config/l2_chain_config.json --l2chainname arb-dev-test --l2chaininfo /config/deployed_chain_info.json
-    docker compose run --entrypoint sh sequencer -c "jq [.[]] /config/deployed_chain_info.json > /config/l2_chain_info.json"
+    echo == Deploying L2 chain
+    docker compose run -e PARENT_CHAIN_RPC="http://geth:8545" -e DEPLOYER_PRIVKEY=$l2ownerKey -e PARENT_CHAIN_ID=$l1chainid -e CHILD_CHAIN_NAME="arb-dev-test" -e MAX_DATA_SIZE=117964 -e OWNER_ADDRESS=$l2ownerAddress -e WASM_MODULE_ROOT=$wasmroot -e SEQUENCER_ADDRESS=$sequenceraddress -e AUTHORIZE_VALIDATORS=10 -e CHILD_CHAIN_CONFIG_PATH="/config/l2_chain_config.json" -e CHAIN_DEPLOYMENT_INFO="/config/deployment.json" -e CHILD_CHAIN_INFO="/config/deployed_chain_info.json" rollupcreator create-rollup-testnode
+    docker compose run --entrypoint sh rollupcreator -c "jq [.[]] /config/deployed_chain_info.json > /config/l2_chain_info.json"
 
     if $simple; then
         echo == Writing configs
@@ -369,7 +387,6 @@ if $force_init; then
         echo == Deploying L1-L2 token bridge
         sleep 10 # no idea why this sleep is needed but without it the deploy fails randomly
         rollupAddress=`docker compose run --entrypoint sh poster -c "jq -r '.[0].rollup.rollup' /config/deployed_chain_info.json | tail -n 1 | tr -d '\r\n'"`
-        l2ownerKey=`docker compose run scripts print-private-key --account l2owner | tail -n 1 | tr -d '\r\n'`
         docker compose run -e ROLLUP_OWNER_KEY=$l2ownerKey -e ROLLUP_ADDRESS=$rollupAddress -e PARENT_KEY=$devprivkey -e PARENT_RPC=http://geth:8545 -e CHILD_KEY=$devprivkey -e CHILD_RPC=http://sequencer:8547 tokenbridge deploy:local:token-bridge
         docker compose run --entrypoint sh tokenbridge -c "cat network.json && cp network.json l1l2_network.json && cp network.json localNetwork.json"
         echo
@@ -398,15 +415,17 @@ if $force_init; then
         if $l3_custom_fee_token; then
             echo == Deploying custom fee token
             nativeTokenAddress=`docker compose run scripts create-erc20 --deployer user_fee_token_deployer --mintTo user_token_bridge_deployer --bridgeable $tokenbridge | tail -n 1 | awk '{ print $NF }'`
-            EXTRA_L3_DEPLOY_FLAG="--nativeTokenAddress $nativeTokenAddress"
+            docker compose run scripts transfer-erc20 --token $nativeTokenAddress --amount 100 --from user_token_bridge_deployer --to l3owner
+            EXTRA_L3_DEPLOY_FLAG="-e FEE_TOKEN_ADDRESS=$nativeTokenAddress"
         fi
 
         echo == Deploying L3
         l3owneraddress=`docker compose run scripts print-address --account l3owner | tail -n 1 | tr -d '\r\n'`
         l3ownerkey=`docker compose run scripts print-private-key --account l3owner | tail -n 1 | tr -d '\r\n'`
         l3sequenceraddress=`docker compose run scripts print-address --account l3sequencer | tail -n 1 | tr -d '\r\n'`
-        docker compose run --entrypoint /usr/local/bin/deploy sequencer --l1conn ws://sequencer:8548 --l1keystore /home/user/l1keystore --sequencerAddress $l3sequenceraddress --ownerAddress $l3owneraddress --l1DeployAccount $l3owneraddress --l1deployment /config/l3deployment.json --authorizevalidators 10 --wasmrootpath /home/user/target/machines --l1chainid=412346 --l2chainconfig /config/l3_chain_config.json --l2chainname orbit-dev-test --l2chaininfo /config/deployed_l3_chain_info.json --maxDataSize 104857 $EXTRA_L3_DEPLOY_FLAG
-        docker compose run --entrypoint sh sequencer -c "jq [.[]] /config/deployed_l3_chain_info.json > /config/l3_chain_info.json"
+
+        docker compose run -e DEPLOYER_PRIVKEY=$l3ownerkey -e PARENT_CHAIN_RPC="http://sequencer:8547" -e PARENT_CHAIN_ID=412346 -e CHILD_CHAIN_NAME="orbit-dev-test" -e MAX_DATA_SIZE=104857 -e OWNER_ADDRESS=$l3owneraddress -e WASM_MODULE_ROOT=$wasmroot -e SEQUENCER_ADDRESS=$l3sequenceraddress -e AUTHORIZE_VALIDATORS=10 -e CHILD_CHAIN_CONFIG_PATH="/config/l3_chain_config.json" -e CHAIN_DEPLOYMENT_INFO="/config/l3deployment.json" -e CHILD_CHAIN_INFO="/config/deployed_l3_chain_info.json" $EXTRA_L3_DEPLOY_FLAG rollupcreator create-rollup-testnode
+        docker compose run --entrypoint sh rollupcreator -c "jq [.[]] /config/deployed_l3_chain_info.json > /config/l3_chain_info.json"
 
         echo == Funding l3 funnel and dev key
         docker compose up --wait l3node sequencer
diff --git a/tokenbridge/Dockerfile b/tokenbridge/Dockerfile
index 344e537..3d8cbac 100644
--- a/tokenbridge/Dockerfile
+++ b/tokenbridge/Dockerfile
@@ -1,8 +1,10 @@
 FROM node:16-bullseye-slim
+ARG TOKEN_BRIDGE_BRANCH=main
 RUN apt-get update && \
     apt-get install -y git docker.io python3 build-essential
 WORKDIR /workspace  
-RUN git clone https://github.com/OffchainLabs/token-bridge-contracts.git ./
+RUN git clone --no-checkout https://github.com/OffchainLabs/token-bridge-contracts.git ./
+RUN git checkout ${TOKEN_BRIDGE_BRANCH}
 RUN yarn install
 RUN yarn build
 ENTRYPOINT ["yarn"]