Ignite v29 almost wires IBC v2 properly.
IBC-go v10 core keepers instantiate the proper v2 client and channel keepers (https://github.com/cosmos/ibc-go/blob/main/modules/core/keeper/keeper.go#L38C6-L68).
However the default Ignite templates do not wire the messages in the router (e.g. https://github.com/cosmos/gaia/blob/301fb35d488de1013457715c258e18c90e5e99e5/app/keepers/keepers.go#L544-L564).

This is something we should enable.

However, this issue is blocked until the AtomOne team develops a nicer IBC v2 relayer.
To ensure perfect UX, IBC v2 should be enabled when the relayer story is complete (Ignite App with new relayer, corresponding tests for hardening the template.)

• Wire IBC v2 (feat(template): wire ibc v2 #4731)
• Test IBC v2