diff --git a/CHANGELOG.md b/CHANGELOG.md
index ad97108cf7c..d647e313834 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -91,7 +91,8 @@ Every module contains its own CHANGELOG.md. Please refer to the module you are i
 * (abci): [#19200](https://github.com/cosmos/cosmos-sdk/pull/19200) Ensure that sdk side ve math matches cometbft
 * (server) [#18994](https://github.com/cosmos/cosmos-sdk/pull/18994) Update server context directly rather than a reference to a sub-object
 * (crypto) [#19371](https://github.com/cosmos/cosmos-sdk/pull/19371) Avoid cli redundant log in stdout, log to stderr instead.
- 
+* (client) [#19393](https://github.com/cosmos/cosmos-sdk/pull/19393/) Add `ReadDefaultValuesFromDefaultClientConfig` to populate the default values from the default client config in client.Context without creating a app folder.
+
 ### API Breaking Changes
 
 * (server) [#18303](https://github.com/cosmos/cosmos-sdk/pull/18303) `x/genutil` now handles the application export. `server.AddCommands` does not take an `AppExporter` but instead `genutilcli.Commands` does.
diff --git a/client/config/config.go b/client/config/config.go
index 4cb0faa1203..efe65bd34ec 100644
--- a/client/config/config.go
+++ b/client/config/config.go
@@ -36,10 +36,31 @@ type Config struct {
 
 // ReadFromClientConfig reads values from client.toml file and updates them in client.Context
 // It uses CreateClientConfig internally with no custom template and custom config.
+// Deprecated: use CreateClientConfig instead.
 func ReadFromClientConfig(ctx client.Context) (client.Context, error) {
 	return CreateClientConfig(ctx, "", nil)
 }
 
+// ReadDefaultValuesFromDefaultClientConfig reads default values from default client.toml file and updates them in client.Context
+// The client.toml is then discarded.
+func ReadDefaultValuesFromDefaultClientConfig(ctx client.Context, customClientTemplate string, customConfig interface{}) (client.Context, error) {
+	prevHomeDir := ctx.HomeDir
+	dir, err := os.MkdirTemp("", "simapp")
+	if err != nil {
+		return ctx, fmt.Errorf("couldn't create temp dir: %w", err)
+	}
+	defer os.RemoveAll(dir)
+
+	ctx.HomeDir = dir
+	ctx, err = CreateClientConfig(ctx, customClientTemplate, customConfig)
+	if err != nil {
+		return ctx, fmt.Errorf("couldn't create client config: %w", err)
+	}
+
+	ctx.HomeDir = prevHomeDir
+	return ctx, nil
+}
+
 // CreateClientConfig reads the client.toml file and returns a new populated client.Context
 // If the client.toml file does not exist, it creates one with default values.
 // It takes a customClientTemplate and customConfig as input that can be used to overwrite the default config and enhance the client.toml file.
diff --git a/simapp/simd/cmd/root.go b/simapp/simd/cmd/root.go
index d66a4accfda..24ed158ee4b 100644
--- a/simapp/simd/cmd/root.go
+++ b/simapp/simd/cmd/root.go
@@ -108,7 +108,7 @@ func NewRootCmd() *cobra.Command {
 	// autocli opts
 	customClientTemplate, customClientConfig := initClientConfig()
 	var err error
-	initClientCtx, err = config.CreateClientConfig(initClientCtx, customClientTemplate, customClientConfig)
+	initClientCtx, err = config.ReadDefaultValuesFromDefaultClientConfig(initClientCtx, customClientTemplate, customClientConfig)
 	if err != nil {
 		panic(err)
 	}
diff --git a/simapp/simd/cmd/root_v2.go b/simapp/simd/cmd/root_v2.go
index aacf8a21d57..3b207a1a015 100644
--- a/simapp/simd/cmd/root_v2.go
+++ b/simapp/simd/cmd/root_v2.go
@@ -120,7 +120,7 @@ func ProvideClientContext(
 
 	// Read the config to overwrite the default values with the values from the config file
 	customClientTemplate, customClientConfig := initClientConfig()
-	clientCtx, err = config.CreateClientConfig(clientCtx, customClientTemplate, customClientConfig)
+	clientCtx, err = config.ReadDefaultValuesFromDefaultClientConfig(clientCtx, customClientTemplate, customClientConfig)
 	if err != nil {
 		panic(err)
 	}