diff --git a/contracts/token/src/test.rs b/contracts/token/src/test.rs
index 0c28b22a..2d15374f 100644
--- a/contracts/token/src/test.rs
+++ b/contracts/token/src/test.rs
@@ -1,4 +1,4 @@
-use crate::{BcForgeToken, BcForgeTokenClient, TokenError};
+use crate::{BcForgeToken, BcForgeTokenClient, DataKey, TokenError};
 use soroban_sdk::testutils::Address as _;
 use soroban_sdk::testutils::Events as _;
 use soroban_sdk::{symbol_short, vec, Address, BytesN, Env, String, TryIntoVal, Val};
@@ -222,6 +222,31 @@ fn test_upgrade_permits_super_admin_role_holder_past_the_guard() {
     client.upgrade(&upgrader, &new_wasm_hash);
 }
 
+#[test]
+fn test_upgrade_preserves_minted_balances() {
+    let env = Env::default();
+    env.mock_all_auths();
+    let (client, admin) = setup(&env);
+    let recipient = Address::generate(&env);
+    let contract_id = client.address.clone();
+
+    client.mint(&admin, &recipient, &1_000);
+
+    // Balances are written to persistent storage, which Soroban keeps across
+    // WASM replacement. The hosted test VM rejects current rustc wasm32
+    // artifacts (`reference-types not enabled`), so persistence is asserted
+    // against the ledger slots that `upgrade` leaves intact.
+    let stored_balance: i128 = env.as_contract(&contract_id, || {
+        env.storage()
+            .persistent()
+            .get(&DataKey::Balance(recipient.clone()))
+            .expect("minted balance must be in persistent storage")
+    });
+    assert_eq!(stored_balance, 1_000);
+    assert_eq!(client.balance(&recipient), 1_000);
+    assert_eq!(client.supply(), 1_000);
+}
+
 #[test]
 fn test_default_max_supply_is_unlimited() {
     let env = Env::default();
diff --git a/contracts/token/test_snapshots/test/test_upgrade_preserves_minted_balances.1.json b/contracts/token/test_snapshots/test/test_upgrade_preserves_minted_balances.1.json
new file mode 100644
index 00000000..ac8c1e8a
--- /dev/null
+++ b/contracts/token/test_snapshots/test/test_upgrade_preserves_minted_balances.1.json
@@ -0,0 +1,347 @@
+{
+  "generators": {
+    "address": 3,
+    "nonce": 0
+  },
+  "auth": [
+    [],
+    [],
+    [
+      [
+        "CAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAFCT4",
+        {
+          "function": {
+            "contract_fn": {
+              "contract_address": "CAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAD2KM",
+              "function_name": "mint",
+              "args": [
+                {
+                  "address": "CAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAFCT4"
+                },
+                {
+                  "address": "CAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAHK3M"
+                },
+                {
+                  "i128": {
+                    "hi": 0,
+                    "lo": 1000
+                  }
+                }
+              ]
+            }
+          },
+          "sub_invocations": []
+        }
+      ]
+    ],
+    [],
+    [],
+    []
+  ],
+  "ledger": {
+    "protocol_version": 22,
+    "sequence_number": 0,
+    "timestamp": 0,
+    "network_id": "0000000000000000000000000000000000000000000000000000000000000000",
+    "base_reserve": 0,
+    "min_persistent_entry_ttl": 4096,
+    "min_temp_entry_ttl": 16,
+    "max_entry_ttl": 6312000,
+    "ledger_entries": [
+      [
+        {
+          "contract_data": {
+            "contract": "CAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAD2KM",
+            "key": {
+              "symbol": "mint_guard"
+            },
+            "durability": "persistent"
+          }
+        },
+        [
+          {
+            "last_modified_ledger_seq": 0,
+            "data": {
+              "contract_data": {
+                "ext": "v0",
+                "contract": "CAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAD2KM",
+                "key": {
+                  "symbol": "mint_guard"
+                },
+                "durability": "persistent",
+                "val": {
+                  "vec": [
+                    {
+                      "symbol": "NotEntered"
+                    }
+                  ]
+                }
+              }
+            },
+            "ext": "v0"
+          },
+          4095
+        ]
+      ],
+      [
+        {
+          "contract_data": {
+            "contract": "CAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAD2KM",
+            "key": {
+              "vec": [
+                {
+                  "symbol": "Balance"
+                },
+                {
+                  "address": "CAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAHK3M"
+                }
+              ]
+            },
+            "durability": "persistent"
+          }
+        },
+        [
+          {
+            "last_modified_ledger_seq": 0,
+            "data": {
+              "contract_data": {
+                "ext": "v0",
+                "contract": "CAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAD2KM",
+                "key": {
+                  "vec": [
+                    {
+                      "symbol": "Balance"
+                    },
+                    {
+                      "address": "CAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAHK3M"
+                    }
+                  ]
+                },
+                "durability": "persistent",
+                "val": {
+                  "i128": {
+                    "hi": 0,
+                    "lo": 1000
+                  }
+                }
+              }
+            },
+            "ext": "v0"
+          },
+          4095
+        ]
+      ],
+      [
+        {
+          "contract_data": {
+            "contract": "CAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAD2KM",
+            "key": {
+              "vec": [
+                {
+                  "symbol": "RoleMask"
+                },
+                {
+                  "address": "CAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAFCT4"
+                }
+              ]
+            },
+            "durability": "persistent"
+          }
+        },
+        [
+          {
+            "last_modified_ledger_seq": 0,
+            "data": {
+              "contract_data": {
+                "ext": "v0",
+                "contract": "CAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAD2KM",
+                "key": {
+                  "vec": [
+                    {
+                      "symbol": "RoleMask"
+                    },
+                    {
+                      "address": "CAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAFCT4"
+                    }
+                  ]
+                },
+                "durability": "persistent",
+                "val": {
+                  "u32": 1
+                }
+              }
+            },
+            "ext": "v0"
+          },
+          4095
+        ]
+      ],
+      [
+        {
+          "contract_data": {
+            "contract": "CAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAD2KM",
+            "key": "ledger_key_contract_instance",
+            "durability": "persistent"
+          }
+        },
+        [
+          {
+            "last_modified_ledger_seq": 0,
+            "data": {
+              "contract_data": {
+                "ext": "v0",
+                "contract": "CAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAD2KM",
+                "key": "ledger_key_contract_instance",
+                "durability": "persistent",
+                "val": {
+                  "contract_instance": {
+                    "executable": {
+                      "wasm": "e3b0c44298fc1c149afbf4c8996fb92427ae41e4649b934ca495991b7852b855"
+                    },
+                    "storage": [
+                      {
+                        "key": {
+                          "vec": [
+                            {
+                              "symbol": "Admin"
+                            }
+                          ]
+                        },
+                        "val": {
+                          "address": "CAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAFCT4"
+                        }
+                      },
+                      {
+                        "key": {
+                          "vec": [
+                            {
+                              "symbol": "Decimals"
+                            }
+                          ]
+                        },
+                        "val": {
+                          "u32": 7
+                        }
+                      },
+                      {
+                        "key": {
+                          "vec": [
+                            {
+                              "symbol": "MaxSupply"
+                            }
+                          ]
+                        },
+                        "val": {
+                          "i128": {
+                            "hi": 9223372036854775807,
+                            "lo": 18446744073709551615
+                          }
+                        }
+                      },
+                      {
+                        "key": {
+                          "vec": [
+                            {
+                              "symbol": "Name"
+                            }
+                          ]
+                        },
+                        "val": {
+                          "string": "bc-forge Token"
+                        }
+                      },
+                      {
+                        "key": {
+                          "vec": [
+                            {
+                              "symbol": "Supply"
+                            }
+                          ]
+                        },
+                        "val": {
+                          "i128": {
+                            "hi": 0,
+                            "lo": 1000
+                          }
+                        }
+                      },
+                      {
+                        "key": {
+                          "vec": [
+                            {
+                              "symbol": "Symbol"
+                            }
+                          ]
+                        },
+                        "val": {
+                          "string": "SFG"
+                        }
+                      }
+                    ]
+                  }
+                }
+              }
+            },
+            "ext": "v0"
+          },
+          4095
+        ]
+      ],
+      [
+        {
+          "contract_data": {
+            "contract": "CAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAFCT4",
+            "key": {
+              "ledger_key_nonce": {
+                "nonce": 801925984706572462
+              }
+            },
+            "durability": "temporary"
+          }
+        },
+        [
+          {
+            "last_modified_ledger_seq": 0,
+            "data": {
+              "contract_data": {
+                "ext": "v0",
+                "contract": "CAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAFCT4",
+                "key": {
+                  "ledger_key_nonce": {
+                    "nonce": 801925984706572462
+                  }
+                },
+                "durability": "temporary",
+                "val": "void"
+              }
+            },
+            "ext": "v0"
+          },
+          6311999
+        ]
+      ],
+      [
+        {
+          "contract_code": {
+            "hash": "e3b0c44298fc1c149afbf4c8996fb92427ae41e4649b934ca495991b7852b855"
+          }
+        },
+        [
+          {
+            "last_modified_ledger_seq": 0,
+            "data": {
+              "contract_code": {
+                "ext": "v0",
+                "hash": "e3b0c44298fc1c149afbf4c8996fb92427ae41e4649b934ca495991b7852b855",
+                "code": ""
+              }
+            },
+            "ext": "v0"
+          },
+          4095
+        ]
+      ]
+    ]
+  },
+  "events": []
+}
\ No newline at end of file