diff --git a/.pnp.cjs b/.pnp.cjs
index 79e3942650..ee5b461126 100755
--- a/.pnp.cjs
+++ b/.pnp.cjs
@@ -564,7 +564,11 @@ function $$SETUP_STATE(hydrateRuntimeState, basePath) {
       ],\
       [\
         "@types/libsodium-wrappers",\
-        "npm:0.7.9"\
+        "npm:0.7.10"\
+      ],\
+      [\
+        "@types/libsodium-wrappers-sumo",\
+        "npm:0.7.5"\
       ],\
       [\
         "@types/long",\
@@ -1851,12 +1855,12 @@ function $$SETUP_STATE(hydrateRuntimeState, basePath) {
         "npm:0.4.1"\
       ],\
       [\
-        "libsodium",\
-        "npm:0.7.9"\
+        "libsodium-sumo",\
+        "npm:0.7.11"\
       ],\
       [\
-        "libsodium-wrappers",\
-        "npm:0.7.9"\
+        "libsodium-wrappers-sumo",\
+        "npm:0.7.11"\
       ],\
       [\
         "load-json-file",\
@@ -3336,7 +3340,7 @@ function $$SETUP_STATE(hydrateRuntimeState, basePath) {
             ["@types/karma-firefox-launcher", "npm:2.1.0"],\
             ["@types/karma-jasmine", "npm:4.0.2"],\
             ["@types/karma-jasmine-html-reporter", "npm:1.5.1"],\
-            ["@types/libsodium-wrappers", "npm:0.7.9"],\
+            ["@types/libsodium-wrappers-sumo", "npm:0.7.5"],\
             ["@types/node", "npm:18.15.11"],\
             ["@typescript-eslint/eslint-plugin", "virtual:4f1584ad4aba8733a24be7c8aebbffafef25607f2d00f4b314cf96717145c692763628a31c2b85d4686fbb091ff21ebffa3cc337399c042c19a32b9bdb786464#npm:5.54.0"],\
             ["@typescript-eslint/parser", "virtual:4f1584ad4aba8733a24be7c8aebbffafef25607f2d00f4b314cf96717145c692763628a31c2b85d4686fbb091ff21ebffa3cc337399c042c19a32b9bdb786464#npm:5.54.0"],\
@@ -3358,7 +3362,7 @@ function $$SETUP_STATE(hydrateRuntimeState, basePath) {
             ["karma-firefox-launcher", "npm:2.1.0"],\
             ["karma-jasmine", "virtual:4f1584ad4aba8733a24be7c8aebbffafef25607f2d00f4b314cf96717145c692763628a31c2b85d4686fbb091ff21ebffa3cc337399c042c19a32b9bdb786464#npm:5.1.0"],\
             ["karma-jasmine-html-reporter", "virtual:4f1584ad4aba8733a24be7c8aebbffafef25607f2d00f4b314cf96717145c692763628a31c2b85d4686fbb091ff21ebffa3cc337399c042c19a32b9bdb786464#npm:1.6.0"],\
-            ["libsodium-wrappers", "npm:0.7.9"],\
+            ["libsodium-wrappers-sumo", "npm:0.7.11"],\
             ["nyc", "npm:15.1.0"],\
             ["prettier", "npm:2.8.1"],\
             ["ses", "npm:0.11.1"],\
@@ -4725,10 +4729,20 @@ function $$SETUP_STATE(hydrateRuntimeState, basePath) {
         }]\
       ]],\
       ["@types/libsodium-wrappers", [\
-        ["npm:0.7.9", {\
-          "packageLocation": "./.yarn/cache/@types-libsodium-wrappers-npm-0.7.9-4b14af299f-5ddf61b804.zip/node_modules/@types/libsodium-wrappers/",\
+        ["npm:0.7.10", {\
+          "packageLocation": "./.yarn/cache/@types-libsodium-wrappers-npm-0.7.10-1977488a6a-717054ebcb.zip/node_modules/@types/libsodium-wrappers/",\
+          "packageDependencies": [\
+            ["@types/libsodium-wrappers", "npm:0.7.10"]\
+          ],\
+          "linkType": "HARD"\
+        }]\
+      ]],\
+      ["@types/libsodium-wrappers-sumo", [\
+        ["npm:0.7.5", {\
+          "packageLocation": "./.yarn/cache/@types-libsodium-wrappers-sumo-npm-0.7.5-b503484acd-27846e49cd.zip/node_modules/@types/libsodium-wrappers-sumo/",\
           "packageDependencies": [\
-            ["@types/libsodium-wrappers", "npm:0.7.9"]\
+            ["@types/libsodium-wrappers-sumo", "npm:0.7.5"],\
+            ["@types/libsodium-wrappers", "npm:0.7.10"]\
           ],\
           "linkType": "HARD"\
         }]\
@@ -9536,21 +9550,21 @@ function $$SETUP_STATE(hydrateRuntimeState, basePath) {
           "linkType": "HARD"\
         }]\
       ]],\
-      ["libsodium", [\
-        ["npm:0.7.9", {\
-          "packageLocation": "./.yarn/cache/libsodium-npm-0.7.9-98a3b621b1-1c922c9972.zip/node_modules/libsodium/",\
+      ["libsodium-sumo", [\
+        ["npm:0.7.11", {\
+          "packageLocation": "./.yarn/cache/libsodium-sumo-npm-0.7.11-aaac6bcc6c-9efac902a0.zip/node_modules/libsodium-sumo/",\
           "packageDependencies": [\
-            ["libsodium", "npm:0.7.9"]\
+            ["libsodium-sumo", "npm:0.7.11"]\
           ],\
           "linkType": "HARD"\
         }]\
       ]],\
-      ["libsodium-wrappers", [\
-        ["npm:0.7.9", {\
-          "packageLocation": "./.yarn/cache/libsodium-wrappers-npm-0.7.9-be74b30f7d-b5b1b9e1b4.zip/node_modules/libsodium-wrappers/",\
+      ["libsodium-wrappers-sumo", [\
+        ["npm:0.7.11", {\
+          "packageLocation": "./.yarn/cache/libsodium-wrappers-sumo-npm-0.7.11-08fe1b2cf4-26c7aaf8c4.zip/node_modules/libsodium-wrappers-sumo/",\
           "packageDependencies": [\
-            ["libsodium-wrappers", "npm:0.7.9"],\
-            ["libsodium", "npm:0.7.9"]\
+            ["libsodium-wrappers-sumo", "npm:0.7.11"],\
+            ["libsodium-sumo", "npm:0.7.11"]\
           ],\
           "linkType": "HARD"\
         }]\
diff --git a/.yarn/cache/@types-libsodium-wrappers-npm-0.7.10-1977488a6a-717054ebcb.zip b/.yarn/cache/@types-libsodium-wrappers-npm-0.7.10-1977488a6a-717054ebcb.zip
new file mode 100644
index 0000000000..f09315f217
--- /dev/null
+++ b/.yarn/cache/@types-libsodium-wrappers-npm-0.7.10-1977488a6a-717054ebcb.zip
@@ -0,0 +1,3 @@
+version https://git-lfs.github.com/spec/v1
+oid sha256:ac794f03e5eaea3e1f172e612012fa4654ff1e9ecace8470dc6c4fe5945cfd14
+size 5080
diff --git a/.yarn/cache/@types-libsodium-wrappers-npm-0.7.9-4b14af299f-5ddf61b804.zip b/.yarn/cache/@types-libsodium-wrappers-npm-0.7.9-4b14af299f-5ddf61b804.zip
deleted file mode 100644
index fbf4a51db3..0000000000
--- a/.yarn/cache/@types-libsodium-wrappers-npm-0.7.9-4b14af299f-5ddf61b804.zip
+++ /dev/null
@@ -1,3 +0,0 @@
-version https://git-lfs.github.com/spec/v1
-oid sha256:7aaa3e7fceeef29caebd167e5472f433991ee64c01d1d5029110ade92fc9cec6
-size 5037
diff --git a/.yarn/cache/@types-libsodium-wrappers-sumo-npm-0.7.5-b503484acd-27846e49cd.zip b/.yarn/cache/@types-libsodium-wrappers-sumo-npm-0.7.5-b503484acd-27846e49cd.zip
new file mode 100644
index 0000000000..6aac97a60f
--- /dev/null
+++ b/.yarn/cache/@types-libsodium-wrappers-sumo-npm-0.7.5-b503484acd-27846e49cd.zip
@@ -0,0 +1,3 @@
+version https://git-lfs.github.com/spec/v1
+oid sha256:10baa92bb8e0dc5a5970d7537fcf4433a45a302bda52189af659b263900e0e9e
+size 4628
diff --git a/.yarn/cache/libsodium-npm-0.7.9-98a3b621b1-1c922c9972.zip b/.yarn/cache/libsodium-npm-0.7.9-98a3b621b1-1c922c9972.zip
deleted file mode 100644
index f46659340e..0000000000
--- a/.yarn/cache/libsodium-npm-0.7.9-98a3b621b1-1c922c9972.zip
+++ /dev/null
@@ -1,3 +0,0 @@
-version https://git-lfs.github.com/spec/v1
-oid sha256:1b3c8235a253e0661880db4eca8e03c71126ffd39125f63156984a4c0a88629f
-size 201730
diff --git a/.yarn/cache/libsodium-sumo-npm-0.7.11-aaac6bcc6c-9efac902a0.zip b/.yarn/cache/libsodium-sumo-npm-0.7.11-aaac6bcc6c-9efac902a0.zip
new file mode 100644
index 0000000000..636f38cdfd
--- /dev/null
+++ b/.yarn/cache/libsodium-sumo-npm-0.7.11-aaac6bcc6c-9efac902a0.zip
@@ -0,0 +1,3 @@
+version https://git-lfs.github.com/spec/v1
+oid sha256:25e51d5178085e56b2cd4f2d1bf226f0be99edb2966686c1c67382ea88373c78
+size 295986
diff --git a/.yarn/cache/libsodium-wrappers-npm-0.7.9-be74b30f7d-b5b1b9e1b4.zip b/.yarn/cache/libsodium-wrappers-npm-0.7.9-be74b30f7d-b5b1b9e1b4.zip
deleted file mode 100644
index 016b4681d5..0000000000
--- a/.yarn/cache/libsodium-wrappers-npm-0.7.9-be74b30f7d-b5b1b9e1b4.zip
+++ /dev/null
@@ -1,3 +0,0 @@
-version https://git-lfs.github.com/spec/v1
-oid sha256:f41eda3550a7c3568d94a56309c403f1bcf29083afc014f21ab902bec9d42dad
-size 17397
diff --git a/.yarn/cache/libsodium-wrappers-sumo-npm-0.7.11-08fe1b2cf4-26c7aaf8c4.zip b/.yarn/cache/libsodium-wrappers-sumo-npm-0.7.11-08fe1b2cf4-26c7aaf8c4.zip
new file mode 100644
index 0000000000..787b93ca56
--- /dev/null
+++ b/.yarn/cache/libsodium-wrappers-sumo-npm-0.7.11-08fe1b2cf4-26c7aaf8c4.zip
@@ -0,0 +1,3 @@
+version https://git-lfs.github.com/spec/v1
+oid sha256:463d1a7463025385514de5413ead157b540820375648588318a4ec09636ece6a
+size 17871
diff --git a/CHANGELOG.md b/CHANGELOG.md
index bb059965e6..e60e2b1122 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -6,6 +6,13 @@ and this project adheres to
 
 ## [Unreleased]
 
+### Fixed
+
+- @cosmjs/crypto: Migrate to `libsodium-wrappers-sumo` to be able to use the
+  `crypto_pwhash` functions ([#1429]).
+
+[#1429]: https://github.com/cosmos/cosmjs/issues/1429
+
 ### Added
 
 - @cosmjs/cosmwasm-stargate: Add `SigningCosmWasmClient.instantiate2` ([#1407]).
diff --git a/packages/crypto/package.json b/packages/crypto/package.json
index 3a738030b1..268f0d50c0 100644
--- a/packages/crypto/package.json
+++ b/packages/crypto/package.json
@@ -47,7 +47,7 @@
     "@noble/hashes": "^1",
     "bn.js": "^5.2.0",
     "elliptic": "^6.5.4",
-    "libsodium-wrappers": "^0.7.6"
+    "libsodium-wrappers-sumo": "^0.7.11"
   },
   "devDependencies": {
     "@istanbuljs/nyc-config-typescript": "^1.0.1",
@@ -58,7 +58,7 @@
     "@types/karma-firefox-launcher": "^2",
     "@types/karma-jasmine": "^4",
     "@types/karma-jasmine-html-reporter": "^1",
-    "@types/libsodium-wrappers": "^0.7.7",
+    "@types/libsodium-wrappers-sumo": "^0.7.5",
     "@types/node": "^18",
     "@typescript-eslint/eslint-plugin": "^5.54.0",
     "@typescript-eslint/parser": "^5.54.0",
diff --git a/packages/crypto/src/libsodium.ts b/packages/crypto/src/libsodium.ts
index 0776a0c68a..27d41d98c3 100644
--- a/packages/crypto/src/libsodium.ts
+++ b/packages/crypto/src/libsodium.ts
@@ -4,7 +4,10 @@
 // libsodium.js API: https://gist.github.com/webmaster128/b2dbe6d54d36dd168c9fabf441b9b09c
 
 import { isNonNullObject } from "@cosmjs/utils";
-import sodium from "libsodium-wrappers";
+// Using crypto_pwhash requires sumo. Once we migrate to a standalone
+// Argon2 implementation, we can use the normal libsodium-wrappers
+// again: https://github.com/cosmos/cosmjs/issues/1031
+import sodium from "libsodium-wrappers-sumo";
 
 export interface Argon2idOptions {
   /** Output length in bytes */
diff --git a/yarn.lock b/yarn.lock
index 09da77467e..0ba49fdcc2 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -456,7 +456,7 @@ __metadata:
     "@types/karma-firefox-launcher": ^2
     "@types/karma-jasmine": ^4
     "@types/karma-jasmine-html-reporter": ^1
-    "@types/libsodium-wrappers": ^0.7.7
+    "@types/libsodium-wrappers-sumo": ^0.7.5
     "@types/node": ^18
     "@typescript-eslint/eslint-plugin": ^5.54.0
     "@typescript-eslint/parser": ^5.54.0
@@ -478,7 +478,7 @@ __metadata:
     karma-firefox-launcher: ^2.1.0
     karma-jasmine: ^5
     karma-jasmine-html-reporter: ^1.5.4
-    libsodium-wrappers: ^0.7.6
+    libsodium-wrappers-sumo: ^0.7.11
     nyc: ^15.1.0
     prettier: ^2.8.1
     ses: ^0.11.0
@@ -1700,10 +1700,19 @@ __metadata:
   languageName: node
   linkType: hard
 
-"@types/libsodium-wrappers@npm:^0.7.7":
-  version: 0.7.9
-  resolution: "@types/libsodium-wrappers@npm:0.7.9"
-  checksum: 5ddf61b8047e38f00c1509369ad868a724235a67940971cc671b070ab9d6b2e6872407253be1163b174f742ecbb0986fda7b91aa0b7069437359b4671bfc529b
+"@types/libsodium-wrappers-sumo@npm:^0.7.5":
+  version: 0.7.5
+  resolution: "@types/libsodium-wrappers-sumo@npm:0.7.5"
+  dependencies:
+    "@types/libsodium-wrappers": "*"
+  checksum: 27846e49cd54556c05011ff475cc6564ce8dde8f9a02a542740e3ebaab7de21ed2dfb4afdc182510d7058d3475f748bab0aa4a41178cd105b9f8618a00f8ef3f
+  languageName: node
+  linkType: hard
+
+"@types/libsodium-wrappers@npm:*":
+  version: 0.7.10
+  resolution: "@types/libsodium-wrappers@npm:0.7.10"
+  checksum: 717054ebcb5fa553e378144b8d564bed8b691905c0d4e90b95c64d77ba24ec9fe798cb2c58cd61dad545ceacb1f05ab69b5597217f9829f2da7a23f0688d11d0
   languageName: node
   linkType: hard
 
@@ -5083,19 +5092,19 @@ __metadata:
   languageName: node
   linkType: hard
 
-"libsodium-wrappers@npm:^0.7.6":
-  version: 0.7.9
-  resolution: "libsodium-wrappers@npm:0.7.9"
-  dependencies:
-    libsodium: ^0.7.0
-  checksum: b5b1b9e1b4aa5662e07df244934125f9e3cd2ba7fe0ec45191a5ffc822d22f4d2f6e09e42d91c30c4f48ca0c7f810a176fdf5e32eed6722d7d82a2a719459f56
+"libsodium-sumo@npm:^0.7.11":
+  version: 0.7.11
+  resolution: "libsodium-sumo@npm:0.7.11"
+  checksum: 9efac902a05002e1caca1c1df3a7cd838ac370588cfa31107d6e787cb5a181f4ca46c7961e3136943c8b07b1d543c0283b91e08a141f9b55a74f10808c3017ef
   languageName: node
   linkType: hard
 
-"libsodium@npm:^0.7.0":
-  version: 0.7.9
-  resolution: "libsodium@npm:0.7.9"
-  checksum: 1c922c9972cf97ddb7207ee4f810dd291e0610dd57ea0e47f2343968392546aaa629945a2fb39ae5f19d067f6ed0bb7330f32cc9a680a847a662e9a210ce7bfb
+"libsodium-wrappers-sumo@npm:^0.7.11":
+  version: 0.7.11
+  resolution: "libsodium-wrappers-sumo@npm:0.7.11"
+  dependencies:
+    libsodium-sumo: ^0.7.11
+  checksum: 26c7aaf8c4b6da6b06ef17637e5541e16c796be9611b194d795501f021ac04abfeda09cadae66b3b515308993cd57361a571eefabdf9d9b3377b070a17535440
   languageName: node
   linkType: hard