diff --git a/container-chains/templates/frontier/runtime/src/xcm_config.rs b/container-chains/templates/frontier/runtime/src/xcm_config.rs
index 925d5a711..47aa4efaf 100644
--- a/container-chains/templates/frontier/runtime/src/xcm_config.rs
+++ b/container-chains/templates/frontier/runtime/src/xcm_config.rs
@@ -14,6 +14,9 @@
 // You should have received a copy of the GNU General Public License
 // along with Tanssi.  If not, see <http://www.gnu.org/licenses/>
 
+use pallet_foreign_asset_creator::{
+    AssetBalance, AssetId as AssetIdOf, ForeignAssetCreatedHook, ForeignAssetDestroyedHook,
+};
 use {
     super::{
         precompiles::FOREIGN_ASSET_PRECOMPILE_ADDRESS_PREFIX, AccountId, AllPalletsWithSystem,
@@ -376,6 +379,33 @@ impl pallet_assets::Config<ForeignAssetsInstance> for Runtime {
     type BenchmarkHelper = ForeignAssetBenchmarkHelper;
 }
 
+pub struct RevertCodePrecompileHook;
+
+impl ForeignAssetCreatedHook<MultiLocation, AssetIdOf<Runtime>, AssetBalance<Runtime>>
+    for RevertCodePrecompileHook
+{
+    fn on_asset_created(
+        _foreign_asset: &MultiLocation,
+        asset_id: &AssetIdOf<Runtime>,
+        _min_balance: &AssetBalance<Runtime>,
+    ) {
+        let revert_bytecode = [0x60, 0x00, 0x60, 0x00, 0xFD].to_vec();
+        let prefix_slice = [255u8; 18];
+        let account_id = Runtime::asset_id_to_account(prefix_slice.as_slice(), *asset_id);
+
+        pallet_evm::Pallet::<Runtime>::create_account(account_id.into(), revert_bytecode.clone());
+    }
+}
+
+impl ForeignAssetDestroyedHook<MultiLocation, AssetIdOf<Runtime>> for RevertCodePrecompileHook {
+    fn on_asset_destroyed(_foreign_asset: &MultiLocation, asset_id: &AssetIdOf<Runtime>) {
+        let prefix_slice = [255u8; 18];
+        let account_id = Runtime::asset_id_to_account(prefix_slice.as_slice(), *asset_id);
+
+        pallet_evm::Pallet::<Runtime>::remove_account(&account_id.into());
+    }
+}
+
 impl pallet_foreign_asset_creator::Config for Runtime {
     type RuntimeEvent = RuntimeEvent;
     type ForeignAsset = MultiLocation;
@@ -384,8 +414,8 @@ impl pallet_foreign_asset_creator::Config for Runtime {
     type ForeignAssetDestroyerOrigin = EnsureRoot<AccountId>;
     type Fungibles = ForeignAssets;
     type WeightInfo = pallet_foreign_asset_creator::weights::SubstrateWeight<Runtime>;
-    type OnForeignAssetCreated = ();
-    type OnForeignAssetDestroyed = ();
+    type OnForeignAssetCreated = RevertCodePrecompileHook;
+    type OnForeignAssetDestroyed = RevertCodePrecompileHook;
 }
 
 impl pallet_asset_rate::Config for Runtime {
@@ -439,3 +469,17 @@ pub type ForeignFungiblesTransactor = FungiblesAdapter<
 /// Multiplier used for dedicated `TakeFirstAssetTrader` with `ForeignAssets` instance.
 pub type AssetRateAsMultiplier =
     AssetFeeAsExistentialDepositMultiplier<Runtime, WeightToFee, AssetRate, ForeignAssetsInstance>;
+
+#[test]
+fn test_asset_id_to_account_conversion() {
+    let prefix_slice = [255u8].repeat(18);
+    let asset_ids_to_check = vec![0u16, 123u16, 3453u16, 10000u16, 65535u16];
+    for current_asset_id in asset_ids_to_check {
+        let account_id = Runtime::asset_id_to_account(prefix_slice.as_slice(), current_asset_id);
+        assert_eq!(
+            account_id.to_string().to_lowercase(),
+            String::from("0xffffffffffffffffffffffffffffffffffff")
+                + format!("{:04x}", current_asset_id).as_str()
+        );
+    }
+}
diff --git a/test/suites/dev-frontier-template/test-eth-asset-address/test-eth-asset-address-creation.ts b/test/suites/dev-frontier-template/test-eth-asset-address/test-eth-asset-address-creation.ts
new file mode 100644
index 000000000..705d09023
--- /dev/null
+++ b/test/suites/dev-frontier-template/test-eth-asset-address/test-eth-asset-address-creation.ts
@@ -0,0 +1,51 @@
+import { expect, describeSuite } from "@moonwall/cli";
+import { STATEMINT_LOCATION_EXAMPLE } from "../../../util/constants.ts";
+import { alith } from "@moonwall/util";
+
+describeSuite({
+    id: "DF0901",
+    title: "Ethereum asset dummy precompile address creation",
+    foundationMethods: "dev",
+    testCases: ({ context, it }) => {
+        it({
+            id: "T01",
+            title: "dummy precompile address is created when creating the asset and removed when destroyed",
+            test: async function () {
+                const assetId = 5;
+                const assetIdAddress = new Uint8Array([
+                    255, 255, 255, 255, 255, 255, 255, 255, 255, 255, 255, 255, 255, 255, 255, 255, 255, 255, 0, 5,
+                ]);
+                const revertBytecode = "0x60006000fd";
+                const addressInHex = "0x" + Buffer.from(assetIdAddress).toString("hex");
+
+                await context.createBlock(
+                    context
+                        .polkadotJs()
+                        .tx.sudo.sudo(
+                            context
+                                .polkadotJs()
+                                .tx.foreignAssetsCreator.createForeignAsset(
+                                    STATEMINT_LOCATION_EXAMPLE,
+                                    assetId,
+                                    alith.address,
+                                    true,
+                                    1
+                                )
+                        )
+                );
+
+                // After the foreign asset creation, the address should contain revert byte code.
+                expect(await context.web3().eth.getCode(addressInHex)).to.equal(revertBytecode);
+
+                await context.createBlock(
+                    context
+                        .polkadotJs()
+                        .tx.sudo.sudo(context.polkadotJs().tx.foreignAssetsCreator.destroyForeignAsset(assetId))
+                );
+
+                // After the foreign asset destruction, the revert bytecode from that address should be removed.
+                expect(await context.web3().eth.getCode(addressInHex)).to.equal("0x");
+            },
+        });
+    },
+});