diff --git a/app/upgrades.go b/app/upgrades.go
index 32606cba94..38d4e0abae 100644
--- a/app/upgrades.go
+++ b/app/upgrades.go
@@ -114,6 +114,7 @@ var upgrades = map[string]appUpgrade{
 			removeInactiveValidatorDelegations(ctx, app)
 			setupICQ(ctx, app)
 			updateMaxSupply(ctx, app)
+			setExchangeParams(ctx, app)
 
 			return vm, nil
 		},
@@ -133,6 +134,7 @@ var upgrades = map[string]appUpgrade{
 			removeInactiveValidatorDelegations(ctx, app)
 			setupICQ(ctx, app)
 			updateMaxSupply(ctx, app)
+			setExchangeParams(ctx, app)
 
 			return vm, nil
 		},
@@ -325,14 +327,16 @@ func setAccountDataNameRecord(ctx sdk.Context, accountK attributetypes.AccountKe
 	return attributekeeper.EnsureModuleAccountAndAccountDataNameRecord(ctx, accountK, nameK)
 }
 
-// setupICQ sets the correct default values for ICQKeeper
+// setupICQ sets the correct default values for ICQKeeper.
+// TODO: Remove with the saffron handlers.
 func setupICQ(ctx sdk.Context, app *App) {
 	ctx.Logger().Info("Updating ICQ params")
 	app.ICQKeeper.SetParams(ctx, icqtypes.NewParams(true, []string{"/provenance.oracle.v1.Query/Oracle"}))
 	ctx.Logger().Info("Done updating ICQ params")
 }
 
-// updateMaxSupply sets the value of max supply to the current value of MaxTotalSupply
+// updateMaxSupply sets the value of max supply to the current value of MaxTotalSupply.
+// TODO: Remove with the saffron handlers.
 func updateMaxSupply(ctx sdk.Context, app *App) {
 	ctx.Logger().Info("Updating MaxSupply marker param")
 	params := app.MarkerKeeper.GetParams(ctx)
@@ -341,3 +345,18 @@ func updateMaxSupply(ctx sdk.Context, app *App) {
 	app.MarkerKeeper.SetParams(ctx, params)
 	ctx.Logger().Info("Done updating MaxSupply marker param")
 }
+
+// setExchangeParams sets exchange module's params to the defaults.
+// TODO: Remove with the saffron handlers.
+func setExchangeParams(ctx sdk.Context, app *App) {
+	ctx.Logger().Info("Ensuring exchange module params are set.")
+	params := app.ExchangeKeeper.GetParams(ctx)
+	if params != nil {
+		ctx.Logger().Info("Exchange module params are already defined.")
+	} else {
+		params = exchange.DefaultParams()
+		ctx.Logger().Info("Setting exchange module params to defaults.")
+		app.ExchangeKeeper.SetParams(ctx, params)
+	}
+	ctx.Logger().Info("Done ensuring exchange module params are set.")
+}
diff --git a/app/upgrades_test.go b/app/upgrades_test.go
index 769330a3b9..f264b24dee 100644
--- a/app/upgrades_test.go
+++ b/app/upgrades_test.go
@@ -24,6 +24,7 @@ import (
 	"github.com/cosmos/cosmos-sdk/x/staking/types"
 	stakingtypes "github.com/cosmos/cosmos-sdk/x/staking/types"
 
+	"github.com/provenance-io/provenance/x/exchange"
 	msgfeetypes "github.com/provenance-io/provenance/x/msgfees/types"
 )
 
@@ -426,6 +427,7 @@ func (s *UpgradeTestSuite) TestSaffronRC1() {
 		"INF Done updating ICQ params",
 		"INF Updating MaxSupply marker param",
 		"INF Done updating MaxSupply marker param",
+		"INF Ensuring exchange module params are set.",
 	}
 
 	s.AssertUpgradeHandlerLogs("saffron-rc1", expInLog, nil)
@@ -442,6 +444,7 @@ func (s *UpgradeTestSuite) TestSaffron() {
 		"INF Done updating ICQ params",
 		"INF Updating MaxSupply marker param",
 		"INF Done updating MaxSupply marker param",
+		"INF Ensuring exchange module params are set.",
 	}
 
 	s.AssertUpgradeHandlerLogs("saffron", expInLog, nil)
@@ -841,3 +844,78 @@ func (s *UpgradeTestSuite) TestSetAccountDataNameRecord() {
 	s.Require().NoError(err, "setAccountDataNameRecord")
 	s.AssertLogContents(logOutput, expInLog, nil, true, "setAccountDataNameRecord")
 }
+
+func (s *UpgradeTestSuite) TestSetExchangeParams() {
+	startMsg := "INF Ensuring exchange module params are set."
+	noopMsg := "INF Exchange module params are already defined."
+	updateMsg := "INF Setting exchange module params to defaults."
+	doneMsg := "INF Done ensuring exchange module params are set."
+
+	tests := []struct {
+		name           string
+		existingParams *exchange.Params
+		expectedParams *exchange.Params
+		expInLog       []string
+	}{
+		{
+			name:           "no params set yet",
+			existingParams: nil,
+			expectedParams: exchange.DefaultParams(),
+			expInLog:       []string{startMsg, updateMsg, doneMsg},
+		},
+		{
+			name:           "params set with no splits and default zero",
+			existingParams: &exchange.Params{DefaultSplit: 0},
+			expectedParams: &exchange.Params{DefaultSplit: 0},
+			expInLog:       []string{startMsg, noopMsg, doneMsg},
+		},
+		{
+			name:           "params set with no splits and different default",
+			existingParams: &exchange.Params{DefaultSplit: exchange.DefaultDefaultSplit + 100},
+			expectedParams: &exchange.Params{DefaultSplit: exchange.DefaultDefaultSplit + 100},
+			expInLog:       []string{startMsg, noopMsg, doneMsg},
+		},
+		{
+			name: "params set with some splits",
+			existingParams: &exchange.Params{
+				DefaultSplit: exchange.DefaultDefaultSplit + 100,
+				DenomSplits: []exchange.DenomSplit{
+					{Denom: "peach", Split: 3000},
+					{Denom: "plum", Split: 100},
+				},
+			},
+			expectedParams: &exchange.Params{
+				DefaultSplit: exchange.DefaultDefaultSplit + 100,
+				DenomSplits: []exchange.DenomSplit{
+					{Denom: "peach", Split: 3000},
+					{Denom: "plum", Split: 100},
+				},
+			},
+			expInLog: []string{startMsg, noopMsg, doneMsg},
+		},
+	}
+
+	for _, tc := range tests {
+		s.Run(tc.name, func() {
+			s.app.ExchangeKeeper.SetParams(s.ctx, tc.existingParams)
+
+			// Reset the log buffer and call the fun. Relog the output if it panics.
+			s.logBuffer.Reset()
+			testFunc := func() {
+				setExchangeParams(s.ctx, s.app)
+			}
+			didNotPanic := s.Assert().NotPanics(testFunc, "setExchangeParams")
+			logOutput := s.GetLogOutput("setExchangeParams")
+			if !didNotPanic {
+				return
+			}
+
+			// Make sure the log has the expected lines.
+			s.AssertLogContents(logOutput, tc.expInLog, nil, true, "setExchangeParams")
+
+			// Make sure the params are as expected now.
+			params := s.app.ExchangeKeeper.GetParams(s.ctx)
+			s.Assert().Equal(tc.expectedParams, params, "params after setExchangeParams")
+		})
+	}
+}