diff --git a/package.json b/package.json
index 390d2d6879..51e285b860 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@metamask/core-monorepo",
-  "version": "268.0.0",
+  "version": "269.0.0",
   "private": true,
   "description": "Monorepo for packages shared between MetaMask clients",
   "repository": {
diff --git a/packages/notification-services-controller/package.json b/packages/notification-services-controller/package.json
index 14c32397a9..bd7ea3b8a4 100644
--- a/packages/notification-services-controller/package.json
+++ b/packages/notification-services-controller/package.json
@@ -113,7 +113,7 @@
     "@lavamoat/preinstall-always-fail": "^2.1.0",
     "@metamask/auto-changelog": "^3.4.4",
     "@metamask/keyring-controller": "^19.0.1",
-    "@metamask/profile-sync-controller": "^3.0.0",
+    "@metamask/profile-sync-controller": "^3.1.0",
     "@types/jest": "^27.4.1",
     "@types/readable-stream": "^2.3.0",
     "contentful": "^10.15.0",
diff --git a/packages/profile-sync-controller/CHANGELOG.md b/packages/profile-sync-controller/CHANGELOG.md
index a9e6f4d90f..c8101d0897 100644
--- a/packages/profile-sync-controller/CHANGELOG.md
+++ b/packages/profile-sync-controller/CHANGELOG.md
@@ -7,6 +7,18 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 ## [Unreleased]
 
+## [3.1.0]
+
+### Changed
+
+- Revamp user storage encryption process ([#4981](https://github.com/MetaMask/core/pull/4981))
+  - Stop using a random salt when generating scrypt keys and use a shared one
+  - Re-encrypt data fetched by `getUserStorageAllFeatureEntries` and `getUserStorage` with the shared salt if fetched entries were encrypted with random salts
+
+### Fixed
+
+- Remove `#assertLoggedIn()` assertion when signing out a user, ensuring `performSignOut` does not error when a user is already signed out ([#5013](https://github.com/MetaMask/core/pull/5013))
+
 ## [3.0.0]
 
 ### Added
@@ -358,7 +370,8 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 - Initial release
 
-[Unreleased]: https://github.com/MetaMask/core/compare/@metamask/profile-sync-controller@3.0.0...HEAD
+[Unreleased]: https://github.com/MetaMask/core/compare/@metamask/profile-sync-controller@3.1.0...HEAD
+[3.1.0]: https://github.com/MetaMask/core/compare/@metamask/profile-sync-controller@3.0.0...@metamask/profile-sync-controller@3.1.0
 [3.0.0]: https://github.com/MetaMask/core/compare/@metamask/profile-sync-controller@2.0.0...@metamask/profile-sync-controller@3.0.0
 [2.0.0]: https://github.com/MetaMask/core/compare/@metamask/profile-sync-controller@1.0.2...@metamask/profile-sync-controller@2.0.0
 [1.0.2]: https://github.com/MetaMask/core/compare/@metamask/profile-sync-controller@1.0.1...@metamask/profile-sync-controller@1.0.2
diff --git a/packages/profile-sync-controller/package.json b/packages/profile-sync-controller/package.json
index 00560e1c3c..f55fda8da6 100644
--- a/packages/profile-sync-controller/package.json
+++ b/packages/profile-sync-controller/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@metamask/profile-sync-controller",
-  "version": "3.0.0",
+  "version": "3.1.0",
   "description": "The profile sync helps developers synchronize data across multiple clients and devices in a privacy-preserving way. All data saved in the user storage database is encrypted client-side to preserve privacy. The user storage provides a modular design, giving developers the flexibility to construct and manage their storage spaces in a way that best suits their needs",
   "keywords": [
     "MetaMask",
diff --git a/yarn.lock b/yarn.lock
index 5662cf9c72..11e7522926 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -3157,7 +3157,7 @@ __metadata:
     "@metamask/base-controller": "npm:^7.0.2"
     "@metamask/controller-utils": "npm:^11.4.4"
     "@metamask/keyring-controller": "npm:^19.0.1"
-    "@metamask/profile-sync-controller": "npm:^3.0.0"
+    "@metamask/profile-sync-controller": "npm:^3.1.0"
     "@metamask/utils": "npm:^10.0.0"
     "@types/jest": "npm:^27.4.1"
     "@types/readable-stream": "npm:^2.3.0"
@@ -3338,7 +3338,7 @@ __metadata:
   languageName: unknown
   linkType: soft
 
-"@metamask/profile-sync-controller@npm:^3.0.0, @metamask/profile-sync-controller@workspace:packages/profile-sync-controller":
+"@metamask/profile-sync-controller@npm:^3.1.0, @metamask/profile-sync-controller@workspace:packages/profile-sync-controller":
   version: 0.0.0-use.local
   resolution: "@metamask/profile-sync-controller@workspace:packages/profile-sync-controller"
   dependencies: