diff --git a/core/lib/zksync_core/src/dev_api_conversion_rate/mod.rs b/core/lib/zksync_core/src/dev_api_conversion_rate/mod.rs
new file mode 100644
index 000000000000..e095c97fe62c
--- /dev/null
+++ b/core/lib/zksync_core/src/dev_api_conversion_rate/mod.rs
@@ -0,0 +1,35 @@
+use axum::{extract, extract::Json, routing::get, Router};
+use tokio::sync::watch;
+use zksync_config::configs::native_token_fetcher::NativeTokenFetcherConfig;
+
+pub(crate) async fn run_server(
+    mut stop_receiver: watch::Receiver<bool>,
+    server_configs: &NativeTokenFetcherConfig,
+) -> anyhow::Result<()> {
+    let app = Router::new().route("/conversion_rate/:token_address", get(get_conversion_rate));
+
+    let bind_address = if server_configs.host.starts_with("http://") {
+        &server_configs.host[7..] // If it starts with "http://", strip the prefix
+    } else {
+        &server_configs.host // Otherwise, return the original string
+    };
+
+    axum::Server::bind(&bind_address.parse().expect("Unable to parse socket address"))
+        .serve(app.into_make_service())
+        .with_graceful_shutdown(async move {
+            if stop_receiver.changed().await.is_err() {
+                tracing::warn!("Stop signal sender for conversion rate API server was dropped without sending a signal");
+            }
+            tracing::info!("Stop signal received, conversion rate server is shutting down");
+        })
+        .await
+        .expect("Conversion rate server failed");
+    tracing::info!("Conversion rate server shut down");
+    Ok(())
+}
+
+// basic handler that responds with a static string
+async fn get_conversion_rate(extract::Path(_token_address): extract::Path<String>) -> Json<u64> {
+    tracing::info!("Received request for conversion rate");
+    Json(42)
+}
diff --git a/core/lib/zksync_core/src/lib.rs b/core/lib/zksync_core/src/lib.rs
index 130d36956473..2f68d633cf5c 100644
--- a/core/lib/zksync_core/src/lib.rs
+++ b/core/lib/zksync_core/src/lib.rs
@@ -79,6 +79,7 @@ pub mod basic_witness_input_producer;
 pub mod block_reverter;
 pub mod consensus;
 pub mod consistency_checker;
+pub mod dev_api_conversion_rate;
 pub mod eth_sender;
 pub mod eth_watch;
 mod fee_model;
@@ -233,6 +234,8 @@ pub enum Component {
     ProofDataHandler,
     /// Native Token fetcher
     NativeTokenFetcher,
+    /// Conversion rate API, for local development.
+    DevConversionRateApi,
 }
 
 #[derive(Debug)]
@@ -268,6 +271,7 @@ impl FromStr for Components {
             "eth_tx_manager" => Ok(Components(vec![Component::EthTxManager])),
             "proof_data_handler" => Ok(Components(vec![Component::ProofDataHandler])),
             "native_token_fetcher" => Ok(Components(vec![Component::NativeTokenFetcher])),
+            "dev_conversion_rate_api" => Ok(Components(vec![Component::DevConversionRateApi])),
             other => Err(format!("{} is not a valid component name", other)),
         }
     }
@@ -323,7 +327,24 @@ pub async fn initialize_components(
     circuit_breaker_checker.check().await.unwrap_or_else(|err| {
         panic!("Circuit breaker triggered: {}", err);
     });
+
+    let mut task_futures: Vec<JoinHandle<anyhow::Result<()>>> = Vec::new();
     let (stop_sender, stop_receiver) = watch::channel(false);
+
+    // spawn the conversion rate API if it is enabled
+    if components.contains(&Component::DevConversionRateApi) {
+        let native_token_fetcher_config = configs
+            .native_token_fetcher_config
+            .clone()
+            .context("native_token_fetcher_config")?;
+
+        let stop_receiver = stop_receiver.clone();
+        let conversion_rate_task = tokio::spawn(async move {
+            dev_api_conversion_rate::run_server(stop_receiver, &native_token_fetcher_config).await
+        });
+        task_futures.push(conversion_rate_task);
+    };
+
     let (cb_sender, cb_receiver) = oneshot::channel();
 
     let native_token_fetcher = if components.contains(&Component::NativeTokenFetcher) {
@@ -366,10 +387,10 @@ pub async fn initialize_components(
         res
     });
 
-    let mut task_futures: Vec<JoinHandle<anyhow::Result<()>>> = vec![
+    task_futures.extend(vec![
         prometheus_task,
         tokio::spawn(circuit_breaker_checker.run(cb_sender, stop_receiver.clone())),
-    ];
+    ]);
 
     if components.contains(&Component::WsApi)
         || components.contains(&Component::HttpApi)
diff --git a/erc20_example.py b/erc20_example.py
deleted file mode 100644
index 70828545b1f9..000000000000
--- a/erc20_example.py
+++ /dev/null
@@ -1,8 +0,0 @@
-from flask import Flask
-from random import randint
-
-app = Flask(__name__)
-
-@app.route("/conversion_rate/<token_address>")
-def conversion_rate(token_address):
-    return str(randint(1, 100))