diff --git a/e2e/txserver/zeta_tx_server.go b/e2e/txserver/zeta_tx_server.go
index a6aea77fed..2c7a1d8a08 100644
--- a/e2e/txserver/zeta_tx_server.go
+++ b/e2e/txserver/zeta_tx_server.go
@@ -39,6 +39,7 @@ import (
 
 	"github.com/zeta-chain/zetacore/app"
 	"github.com/zeta-chain/zetacore/cmd/zetacored/config"
+	"github.com/zeta-chain/zetacore/e2e/utils"
 	"github.com/zeta-chain/zetacore/pkg/chains"
 	"github.com/zeta-chain/zetacore/pkg/coin"
 	authoritytypes "github.com/zeta-chain/zetacore/x/authority/types"
@@ -441,7 +442,7 @@ func (zts ZetaTxServer) DeployZRC20s(
 	}
 
 	// deploy eth zrc20
-	_, err = zts.BroadcastTx(deployerAccount, fungibletypes.NewMsgDeployFungibleCoinZRC20(
+	res, err := zts.BroadcastTx(deployerAccount, fungibletypes.NewMsgDeployFungibleCoinZRC20(
 		deployerAddr,
 		"",
 		chains.GoerliLocalnet.ChainId,
@@ -454,9 +455,16 @@ func (zts ZetaTxServer) DeployZRC20s(
 	if err != nil {
 		return "", fmt.Errorf("failed to deploy eth zrc20: %s", err.Error())
 	}
+	zrc20, err := fetchZRC20FromDeployResponse(res)
+	if err != nil {
+		return "", err
+	}
+	if err := zts.initializeLiquidityCap(zrc20); err != nil {
+		return "", err
+	}
 
 	// deploy btc zrc20
-	_, err = zts.BroadcastTx(deployerAccount, fungibletypes.NewMsgDeployFungibleCoinZRC20(
+	res, err = zts.BroadcastTx(deployerAccount, fungibletypes.NewMsgDeployFungibleCoinZRC20(
 		deployerAddr,
 		"",
 		chains.BitcoinRegtest.ChainId,
@@ -469,9 +477,16 @@ func (zts ZetaTxServer) DeployZRC20s(
 	if err != nil {
 		return "", fmt.Errorf("failed to deploy btc zrc20: %s", err.Error())
 	}
+	zrc20, err = fetchZRC20FromDeployResponse(res)
+	if err != nil {
+		return "", err
+	}
+	if err := zts.initializeLiquidityCap(zrc20); err != nil {
+		return "", err
+	}
 
 	// deploy sol zrc20
-	_, err = zts.BroadcastTx(deployerAccount, fungibletypes.NewMsgDeployFungibleCoinZRC20(
+	res, err = zts.BroadcastTx(deployerAccount, fungibletypes.NewMsgDeployFungibleCoinZRC20(
 		deployerAddr,
 		"",
 		chains.SolanaLocalnet.ChainId,
@@ -484,9 +499,16 @@ func (zts ZetaTxServer) DeployZRC20s(
 	if err != nil {
 		return "", fmt.Errorf("failed to deploy sol zrc20: %s", err.Error())
 	}
+	zrc20, err = fetchZRC20FromDeployResponse(res)
+	if err != nil {
+		return "", err
+	}
+	if err := zts.initializeLiquidityCap(zrc20); err != nil {
+		return "", err
+	}
 
 	// deploy erc20 zrc20
-	res, err := zts.BroadcastTx(deployerAccount, fungibletypes.NewMsgDeployFungibleCoinZRC20(
+	res, err = zts.BroadcastTx(deployerAccount, fungibletypes.NewMsgDeployFungibleCoinZRC20(
 		deployerAddr,
 		erc20Addr,
 		chains.GoerliLocalnet.ChainId,
@@ -501,12 +523,12 @@ func (zts ZetaTxServer) DeployZRC20s(
 	}
 
 	// fetch the erc20 zrc20 contract address and remove the quotes
-	erc20zrc20Addr, err := FetchAttributeFromTxResponse(res, "Contract")
+	erc20zrc20Addr, err := fetchZRC20FromDeployResponse(res)
 	if err != nil {
-		return "", fmt.Errorf("failed to fetch erc20 zrc20 contract address: %s, %s", err.Error(), res.String())
+		return "", err
 	}
-	if !ethcommon.IsHexAddress(erc20zrc20Addr) {
-		return "", fmt.Errorf("invalid address in event: %s", erc20zrc20Addr)
+	if err := zts.initializeLiquidityCap(erc20zrc20Addr); err != nil {
+		return "", err
 	}
 
 	return erc20zrc20Addr, nil
@@ -557,6 +579,33 @@ func (zts *ZetaTxServer) SetAuthorityClient(authorityClient authoritytypes.Query
 	zts.authorityClient = authorityClient
 }
 
+// initializeLiquidityCap initializes the liquidity cap for the given coin with a large value
+func (zts ZetaTxServer) initializeLiquidityCap(zrc20 string) error {
+	liquidityCap := sdktypes.NewUint(1e18).MulUint64(1e12)
+
+	msg := fungibletypes.NewMsgUpdateZRC20LiquidityCap(
+		zts.MustGetAccountAddressFromName(utils.OperationalPolicyName),
+		zrc20,
+		liquidityCap,
+	)
+	_, err := zts.BroadcastTx(utils.OperationalPolicyName, msg)
+	return err
+}
+
+// fetchZRC20FromDeployResponse fetches the zrc20 address from the response
+func fetchZRC20FromDeployResponse(res *sdktypes.TxResponse) (string, error) {
+	// fetch the erc20 zrc20 contract address and remove the quotes
+	zrc20Addr, err := FetchAttributeFromTxResponse(res, "Contract")
+	if err != nil {
+		return "", fmt.Errorf("failed to fetch zrc20 contract address: %s, %s", err.Error(), res.String())
+	}
+	if !ethcommon.IsHexAddress(zrc20Addr) {
+		return "", fmt.Errorf("invalid address in event: %s", zrc20Addr)
+	}
+
+	return zrc20Addr, nil
+}
+
 // fetchMessagePermissions fetches the message permissions for a given message
 // return a bool preV19 to indicate the node is preV19 and the query doesn't exist
 func (zts ZetaTxServer) fetchMessagePermissions(msg sdktypes.Msg) (authoritytypes.PolicyType, bool, error) {