diff --git a/.github/workflows/build.yml b/.github/workflows/build.yml
index d8baeb069c..c0b2f5dd08 100644
--- a/.github/workflows/build.yml
+++ b/.github/workflows/build.yml
@@ -68,6 +68,13 @@ jobs:
           key: ${{ runner.os }}-go-mod-${{ hashFiles('**/go.sum') }}
           restore-keys: ${{ runner.os }}-go-mod
 
+      - name: Install Subkey
+        run: |
+          wget -P $HOME/.local/bin/ https://chainbridge.ams3.digitaloceanspaces.com/subkey-v2.0.0
+          mv $HOME/.local/bin/subkey-v2.0.0 $HOME/.local/bin/subkey
+          chmod +x $HOME/.local/bin/subkey
+          echo "$HOME/.local/bin" >> $GITHUB_PATH
+
       - name: Generate coverage report
         run: |
           go test ./... -short -coverprofile=coverage.out -covermode=atomic -timeout=20m
diff --git a/.github/workflows/tests.yml b/.github/workflows/tests.yml
index 270b4347de..a8fbebe58b 100644
--- a/.github/workflows/tests.yml
+++ b/.github/workflows/tests.yml
@@ -39,8 +39,17 @@ jobs:
 
       - name: Install Subkey
         run: |
-          wget -P $HOME/.local/bin/ https://chainbridge.ams3.digitaloceanspaces.com/subkey-v2.0.0
-          mv $HOME/.local/bin/subkey-v2.0.0 $HOME/.local/bin/subkey
+          if [ "$RUNNER_OS" == "Linux" ]; then
+            wget -P $HOME/.local/bin/ https://chainbridge.ams3.digitaloceanspaces.com/subkey-v2.0.0
+            mv $HOME/.local/bin/subkey-v2.0.0 $HOME/.local/bin/subkey
+          elif [ "$RUNNER_OS" == "macOS" ]; then
+            wget -P $HOME/.local/bin/ https://chainbridge.ams3.digitaloceanspaces.com/subkey-v2.0.0-macos
+            mv $HOME/.local/bin/subkey-v2.0.0-macos $HOME/.local/bin/subkey
+          else
+            echo "Subkey for $RUNNER_OS is not supported"
+            exit 1
+          fi
+
           chmod +x $HOME/.local/bin/subkey
           echo "$HOME/.local/bin" >> $GITHUB_PATH
 
@@ -81,6 +90,13 @@ jobs:
             key: ${{ runner.os }}-go-mod-${{ hashFiles('**/go.sum') }}
             restore-keys: ${{ runner.os }}-go-mod
 
+        - name: Install Subkey
+          run: |
+            wget -P $HOME/.local/bin/ https://chainbridge.ams3.digitaloceanspaces.com/subkey-v2.0.0
+            mv $HOME/.local/bin/subkey-v2.0.0 $HOME/.local/bin/subkey
+            chmod +x $HOME/.local/bin/subkey
+            echo "$HOME/.local/bin" >> $GITHUB_PATH
+
         - name: Generate coverage report
           run: |
             go test ./... -short -coverprofile=coverage.out -covermode=atomic -timeout=20m
diff --git a/dot/core/messages.go b/dot/core/messages.go
index 8062a201c3..cda8fa8533 100644
--- a/dot/core/messages.go
+++ b/dot/core/messages.go
@@ -18,6 +18,7 @@ package core
 
 import (
 	"github.com/ChainSafe/gossamer/dot/network"
+	"github.com/ChainSafe/gossamer/dot/types"
 	"github.com/ChainSafe/gossamer/lib/transaction"
 )
 
@@ -33,10 +34,8 @@ func (s *Service) HandleTransactionMessage(msg *network.TransactionMessage) erro
 	txs := msg.Extrinsics
 
 	for _, tx := range txs {
-		tx := tx // pin
-
 		// validate each transaction
-		val, err := s.rt.ValidateTransaction(tx)
+		val, err := s.rt.ValidateTransaction(append([]byte{byte(types.TxnExternal)}, tx...))
 		if err != nil {
 			logger.Error("failed to validate transaction", "err", err)
 			return err
diff --git a/dot/core/messages_test.go b/dot/core/messages_test.go
index 266f87fdaf..e005c8d831 100644
--- a/dot/core/messages_test.go
+++ b/dot/core/messages_test.go
@@ -28,10 +28,9 @@ import (
 	"github.com/ChainSafe/gossamer/lib/crypto/sr25519"
 	"github.com/ChainSafe/gossamer/lib/keystore"
 	"github.com/ChainSafe/gossamer/lib/runtime"
-	"github.com/ChainSafe/gossamer/lib/runtime/wasmer"
-	"github.com/ChainSafe/gossamer/lib/trie"
-
-	log "github.com/ChainSafe/log15"
+	"github.com/ChainSafe/gossamer/lib/scale"
+	"github.com/centrifuge/go-substrate-rpc-client/v2/signature"
+	ctypes "github.com/centrifuge/go-substrate-rpc-client/v2/types"
 	"github.com/stretchr/testify/require"
 )
 
@@ -75,40 +74,84 @@ func TestService_ProcessBlockAnnounceMessage(t *testing.T) {
 	require.Equal(t, expected, net.Message)
 }
 
-func TestService_HandleTransactionMessage(t *testing.T) {
-	// this currently fails due to not being able to call validate_transaction
+func createExtrinsics(t *testing.T, rt runtime.Instance, genHash common.Hash, nonce uint64) types.Extrinsic {
+	t.Helper()
+	rawMeta, err := rt.Metadata()
+	require.NoError(t, err)
 
-	t.Skip()
-	tt := trie.NewEmptyTrie()
-	rt := wasmer.NewTestInstanceWithTrie(t, runtime.NODE_RUNTIME, tt, log.LvlTrace)
+	decoded, err := scale.Decode(rawMeta, []byte{})
+	require.NoError(t, err)
 
-	kp, err := sr25519.GenerateKeypair()
-	require.Nil(t, err)
+	meta := &ctypes.Metadata{}
+	err = ctypes.DecodeFromBytes(decoded.([]byte), meta)
+	require.NoError(t, err)
+
+	rv, err := rt.Version()
+	require.NoError(t, err)
+
+	keyring, err := keystore.NewSr25519Keyring()
+	require.NoError(t, err)
+
+	bob, err := ctypes.NewAddressFromHexAccountID(keyring.Bob().Public().Hex())
+	require.NoError(t, err)
+
+	c, err := ctypes.NewCall(meta, "Balances.transfer", bob, ctypes.NewUCompactFromUInt(12345))
+	require.NoError(t, err)
+
+	// Create the extrinsic
+	ext := ctypes.NewExtrinsic(c)
 
-	// TODO: load BABE authority key
+	o := ctypes.SignatureOptions{
+		BlockHash:          ctypes.Hash(genHash),
+		Era:                ctypes.ExtrinsicEra{IsImmortalEra: true},
+		GenesisHash:        ctypes.Hash(genHash),
+		Nonce:              ctypes.NewUCompactFromUInt(nonce),
+		SpecVersion:        ctypes.U32(rv.SpecVersion()),
+		Tip:                ctypes.NewUCompactFromUInt(0),
+		TransactionVersion: ctypes.U32(rv.TransactionVersion()),
+	}
+
+	// Sign the transaction using Alice's default account
+	err = ext.Sign(signature.TestKeyringPairAlice, o)
+	require.NoError(t, err)
+
+	extEnc, err := ctypes.EncodeToHexString(ext)
+	require.NoError(t, err)
+
+	extBytes := types.Extrinsic(common.MustHexToBytes(extEnc))
+	return extBytes
+}
+
+func TestService_HandleTransactionMessage(t *testing.T) {
+	kp, err := sr25519.GenerateKeypair()
+	require.NoError(t, err)
 
 	ks := keystore.NewGlobalKeystore()
 	ks.Acco.Insert(kp)
 
 	cfg := &Config{
-		Runtime:          rt,
 		Keystore:         ks,
 		TransactionState: state.NewTransactionState(),
 		IsBlockProducer:  true,
+		BlockProducer:    &mockBlockProducer{},
 	}
 
 	s := NewTestService(t, cfg)
+	genHash := s.blockState.GenesisHash()
+	header, err := types.NewHeader(genHash, common.Hash{}, common.Hash{}, big.NewInt(1), types.NewEmptyDigest())
+	require.NoError(t, err)
 
-	// https://github.com/paritytech/substrate/blob/5420de3face1349a97eb954ae71c5b0b940c31de/core/transaction-pool/src/tests.rs#L95
-	ext := []byte{1, 212, 53, 147, 199, 21, 253, 211, 28, 97, 20, 26, 189, 4, 169, 159, 214, 130, 44, 133, 88, 133, 76, 205, 227, 154, 86, 132, 231, 165, 109, 162, 125, 142, 175, 4, 21, 22, 135, 115, 99, 38, 201, 254, 161, 126, 37, 252, 82, 135, 97, 54, 147, 201, 18, 144, 156, 178, 38, 170, 71, 148, 242, 106, 72, 69, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 216, 5, 113, 87, 87, 40, 221, 120, 247, 252, 137, 201, 74, 231, 222, 101, 85, 108, 102, 39, 31, 190, 210, 14, 215, 124, 19, 160, 180, 203, 54, 110, 167, 163, 149, 45, 12, 108, 80, 221, 65, 238, 57, 237, 199, 16, 10, 33, 185, 8, 244, 184, 243, 139, 5, 87, 252, 245, 24, 225, 37, 154, 163, 142}
+	// initialise block header
+	err = s.rt.InitializeBlock(header)
+	require.NoError(t, err)
 
-	msg := &network.TransactionMessage{Extrinsics: []types.Extrinsic{ext}}
+	extBytes := createExtrinsics(t, s.rt, genHash, 0)
 
+	msg := &network.TransactionMessage{Extrinsics: []types.Extrinsic{extBytes}}
 	err = s.HandleTransactionMessage(msg)
-	require.Nil(t, err)
+	require.NoError(t, err)
 
 	pending := s.transactionState.(*state.TransactionState).Pending()
 	require.NotEqual(t, 0, len(pending))
-	tx := []byte(pending[0].Extrinsic)
-	require.Equal(t, ext, tx)
+	require.Equal(t, extBytes, pending[0].Extrinsic)
 }
diff --git a/go.sum b/go.sum
index 13ce535da6..55816427d5 100644
--- a/go.sum
+++ b/go.sum
@@ -269,7 +269,6 @@ github.com/kisielk/errcheck v1.2.0/go.mod h1:/BMXB+zMLi60iA8Vv6Ksmxu/1UDYcXs4uQL
 github.com/kisielk/gotool v1.0.0/go.mod h1:XhKaO+MFFWcvkIS/tQcRk01m1F5IRFswLeQ+oQHNcck=
 github.com/kkdai/bstream v0.0.0-20161212061736-f391b8402d23/go.mod h1:J+Gs4SYgM6CZQHDETBtE9HaSEkGmuNXF86RwHhHUvq4=
 github.com/konsorten/go-windows-terminal-sequences v1.0.1/go.mod h1:T0+1ngSBFLxvqU3pZ+m/2kptfBszLMUkC4ZK/EgS/cQ=
-github.com/konsorten/go-windows-terminal-sequences v1.0.3 h1:CE8S1cTafDpPvMhIxNJKvHsGVBgn1xWYf1NbHQhywc8=
 github.com/konsorten/go-windows-terminal-sequences v1.0.3/go.mod h1:T0+1ngSBFLxvqU3pZ+m/2kptfBszLMUkC4ZK/EgS/cQ=
 github.com/koron/go-ssdp v0.0.0-20191105050749-2e1c40ed0b5d h1:68u9r4wEvL3gYg2jvAOgROwZ3H+Y3hIDk4tbbmIjcYQ=
 github.com/koron/go-ssdp v0.0.0-20191105050749-2e1c40ed0b5d/go.mod h1:5Ky9EC2xfoUKUor0Hjgi2BJhCSXJfMOFlmyYrVKGQMk=
@@ -608,7 +607,6 @@ github.com/russross/blackfriday v1.5.2/go.mod h1:JO/DiYxRf+HjHt06OyowR9PTA263kcR
 github.com/russross/blackfriday/v2 v2.0.1/go.mod h1:+Rmxgy9KzJVeS9/2gXHxylqXiyQDYRxCVz55jmeOWTM=
 github.com/shurcooL/sanitized_anchor_name v1.0.0/go.mod h1:1NzhyTcUVG4SuEtjjoZeVRXNmyL/1OwPU0+IJeTBvfc=
 github.com/sirupsen/logrus v1.2.0/go.mod h1:LxeOpSwHxABJmUn/MG1IvRgCAasNZTLOkJPxbbu5VWo=
-github.com/sirupsen/logrus v1.6.0 h1:UBcNElsrwanuuMsnGSlYmtmgbb23qDR5dG+6X6Oo89I=
 github.com/sirupsen/logrus v1.6.0/go.mod h1:7uNnSEd1DgxDLC74fIahvMZmmYsHGZGEOFrfsX/uA88=
 github.com/smola/gocompat v0.2.0/go.mod h1:1B0MlxbmoZNo3h8guHp8HztB3BSYR5itql9qtVc0ypY=
 github.com/spacemonkeygo/openssl v0.0.0-20181017203307-c2dcc5cca94a/go.mod h1:7AyxJNCJ7SBZ1MfVQCWD6Uqo2oubI2Eq2y2eqf+A5r0=
diff --git a/lib/grandpa/round_test.go b/lib/grandpa/round_test.go
index d33d6b32e9..949eebd092 100644
--- a/lib/grandpa/round_test.go
+++ b/lib/grandpa/round_test.go
@@ -105,7 +105,7 @@ func setupGrandpa(t *testing.T, kp *ed25519.Keypair) (*Service, chan GrandpaMess
 		DigestHandler: &mockDigestHandler{},
 		Voters:        voters,
 		Keypair:       kp,
-		LogLvl:        log.LvlTrace,
+		LogLvl:        log.LvlInfo,
 		Authority:     true,
 		Network:       net,
 	}