diff --git a/app/app.go b/app/app.go
index 85e2547a17b..a270e16988f 100644
--- a/app/app.go
+++ b/app/app.go
@@ -118,6 +118,12 @@ import (
 	"github.com/osmosis-labs/osmosis/x/txfees"
 	txfeeskeeper "github.com/osmosis-labs/osmosis/x/txfees/keeper"
 	txfeestypes "github.com/osmosis-labs/osmosis/x/txfees/types"
+
+	"github.com/osmosis-labs/bech32-ibc/x/bech32ibc"
+	bech32ibckeeper "github.com/osmosis-labs/bech32-ibc/x/bech32ibc/keeper"
+	bech32ibctypes "github.com/osmosis-labs/bech32-ibc/x/bech32ibc/types"
+	"github.com/osmosis-labs/bech32-ibc/x/bech32ics20"
+	bech32ics20keeper "github.com/osmosis-labs/bech32-ibc/x/bech32ics20/keeper"
 )
 
 const appName = "OsmosisApp"
@@ -159,6 +165,8 @@ var (
 		poolincentives.AppModuleBasic{},
 		epochs.AppModuleBasic{},
 		claim.AppModuleBasic{},
+		bech32ibc.AppModuleBasic{},
+		bech32ics20.AppModuleBasic{},
 	)
 
 	// module account permissions
@@ -227,6 +235,9 @@ type OsmosisApp struct {
 	PoolIncentivesKeeper poolincentiveskeeper.Keeper
 	TxFeesKeeper         txfeeskeeper.Keeper
 
+	Bech32IBCKeeper   bech32ibckeeper.Keeper
+	Bech32ICS20Keeper bech32ics20keeper.Keeper
+
 	// make scoped keepers public for test purposes
 	ScopedIBCKeeper      capabilitykeeper.ScopedKeeper
 	ScopedTransferKeeper capabilitykeeper.ScopedKeeper
@@ -272,6 +283,7 @@ func NewOsmosisApp(
 		evidencetypes.StoreKey, ibctransfertypes.StoreKey, capabilitytypes.StoreKey,
 		gammtypes.StoreKey, lockuptypes.StoreKey, claimtypes.StoreKey, incentivestypes.StoreKey,
 		epochstypes.StoreKey, poolincentivestypes.StoreKey, authzkeeper.StoreKey, txfeestypes.StoreKey,
+		bech32ibctypes.StoreKey,
 	)
 	tkeys := sdk.NewTransientStoreKeys(paramstypes.TStoreKey)
 	memKeys := sdk.NewMemoryStoreKeys(capabilitytypes.MemStoreKey)
@@ -413,7 +425,7 @@ func NewOsmosisApp(
 
 	if upgradeInfo.Name == v5UpgradeName && !app.UpgradeKeeper.IsSkipHeight(upgradeInfo.Height) {
 		storeUpgrades := store.StoreUpgrades{
-			Added: []string{authz.ModuleName, txfees.ModuleName},
+			Added: []string{authz.ModuleName, txfees.ModuleName, bech32ibctypes.ModuleName},
 		}
 
 		// configure store loader that checks if version == upgradeHeight and applies store upgrades
@@ -442,6 +454,19 @@ func NewOsmosisApp(
 	ibcRouter.AddRoute(ibctransfertypes.ModuleName, transferModule)
 	app.IBCKeeper.SetRouter(ibcRouter)
 
+	app.Bech32IBCKeeper = *bech32ibckeeper.NewKeeper(
+		app.IBCKeeper.ChannelKeeper, appCodec, keys[bech32ibctypes.StoreKey],
+		app.TransferKeeper,
+	)
+
+	app.Bech32ICS20Keeper = *bech32ics20keeper.NewKeeper(
+		app.IBCKeeper.ChannelKeeper,
+		app.BankKeeper, app.TransferKeeper,
+		app.Bech32IBCKeeper,
+		app.TransferKeeper,
+		appCodec,
+	)
+
 	// create evidence keeper with router
 	evidenceKeeper := evidencekeeper.NewKeeper(
 		appCodec, keys[evidencetypes.StoreKey], &stakingKeeper, app.SlashingKeeper,
@@ -487,7 +512,8 @@ func NewOsmosisApp(
 		AddRoute(ibcclienttypes.RouterKey, ibcclient.NewClientProposalHandler(app.IBCKeeper.ClientKeeper)).
 		AddRoute(upgradetypes.RouterKey, upgrade.NewSoftwareUpgradeProposalHandler(app.UpgradeKeeper)).
 		AddRoute(ibchost.RouterKey, ibcclient.NewClientProposalHandler(app.IBCKeeper.ClientKeeper)).
-		AddRoute(poolincentivestypes.RouterKey, poolincentives.NewPoolIncentivesProposalHandler(app.PoolIncentivesKeeper))
+		AddRoute(poolincentivestypes.RouterKey, poolincentives.NewPoolIncentivesProposalHandler(app.PoolIncentivesKeeper)).
+		AddRoute(bech32ibctypes.RouterKey, bech32ibc.NewBech32IBCProposalHandler(app.Bech32IBCKeeper))
 
 	govKeeper := govkeeper.NewKeeper(
 		appCodec, keys[govtypes.StoreKey], app.GetSubspace(govtypes.ModuleName), app.AccountKeeper, app.BankKeeper,
@@ -556,7 +582,7 @@ func NewOsmosisApp(
 		),
 		auth.NewAppModule(appCodec, app.AccountKeeper, nil),
 		vesting.NewAppModule(app.AccountKeeper, app.BankKeeper),
-		bank.NewAppModule(appCodec, app.BankKeeper, app.AccountKeeper),
+		bech32ics20.NewAppModule(appCodec, app.Bech32ICS20Keeper),
 		capability.NewAppModule(appCodec, *app.CapabilityKeeper),
 		crisis.NewAppModule(&app.CrisisKeeper, skipGenesisInvariants),
 		gov.NewAppModule(appCodec, app.GovKeeper, app.AccountKeeper, app.BankKeeper),
@@ -577,6 +603,7 @@ func NewOsmosisApp(
 		lockup.NewAppModule(appCodec, app.LockupKeeper, app.AccountKeeper, app.BankKeeper),
 		poolincentives.NewAppModule(appCodec, app.PoolIncentivesKeeper),
 		epochs.NewAppModule(appCodec, app.EpochsKeeper),
+		bech32ibc.NewAppModule(appCodec, app.Bech32IBCKeeper),
 	)
 
 	// During begin block slashing happens after distr.BeginBlocker so that
@@ -609,6 +636,7 @@ func NewOsmosisApp(
 		gammtypes.ModuleName,
 		txfeestypes.ModuleName,
 		genutiltypes.ModuleName, evidencetypes.ModuleName, ibctransfertypes.ModuleName,
+		bech32ibctypes.ModuleName, // comes after ibctransfertypes
 		poolincentivestypes.ModuleName,
 		claimtypes.ModuleName,
 		incentivestypes.ModuleName,
diff --git a/go.mod b/go.mod
index 55d236fbf17..de7b909dc2f 100644
--- a/go.mod
+++ b/go.mod
@@ -11,6 +11,7 @@ require (
 	github.com/golang/protobuf v1.5.2
 	github.com/gorilla/mux v1.8.0
 	github.com/grpc-ecosystem/grpc-gateway v1.16.0
+	github.com/osmosis-labs/bech32-ibc v0.0.0-20211129140933-05a182d246f3
 	github.com/pkg/errors v0.9.1
 	github.com/rakyll/statik v0.1.7
 	github.com/regen-network/cosmos-proto v0.3.1
diff --git a/go.sum b/go.sum
index 51a9aeda300..1185e028a31 100644
--- a/go.sum
+++ b/go.sum
@@ -621,6 +621,8 @@ github.com/openzipkin/zipkin-go v0.2.1/go.mod h1:NaW6tEwdmWMaCDZzg8sh+IBNOxHMPnh
 github.com/openzipkin/zipkin-go v0.2.2/go.mod h1:NaW6tEwdmWMaCDZzg8sh+IBNOxHMPnhQw8ySjnjRyN4=
 github.com/ory/dockertest v3.3.5+incompatible h1:iLLK6SQwIhcbrG783Dghaaa3WPzGc+4Emza6EbVUUGA=
 github.com/ory/dockertest v3.3.5+incompatible/go.mod h1:1vX4m9wsvi00u5bseYwXaSnhNrne+V0E6LAcBILJdPs=
+github.com/osmosis-labs/bech32-ibc v0.0.0-20211129140933-05a182d246f3 h1:qPpkPrHrIro/9NiYGS+DJd2nUq2YK7oRmP/QXGKoC+c=
+github.com/osmosis-labs/bech32-ibc v0.0.0-20211129140933-05a182d246f3/go.mod h1:fwb95yj/poNCO8mfRfWQBclcEIX7hl27AqJc0DE2hRM=
 github.com/osmosis-labs/cosmos-sdk v0.43.0-rc3.0.20211119062100-2f81f59f3aa1 h1:CxrbRUTLEWeNDQrZXJFIciPOO8YAsp4forPZcCHuMnY=
 github.com/osmosis-labs/cosmos-sdk v0.43.0-rc3.0.20211119062100-2f81f59f3aa1/go.mod h1:S/sIkCqPuuvRrByglANXeN1eb1aA4lmKSjSG5E8SWsU=
 github.com/osmosis-labs/tm-db v0.6.5-0.20210911033928-ba9154613417 h1:otchJDd2SjFWfs7Tse3ULblGcVWqMJ50BE02XCaqXOo=