diff --git a/x/bank/keeper/keeper.go b/x/bank/keeper/keeper.go
index 1a31ffc0f220..df2b0c0818af 100644
--- a/x/bank/keeper/keeper.go
+++ b/x/bank/keeper/keeper.go
@@ -11,6 +11,7 @@ import (
 	storetypes "cosmossdk.io/store/types"
 
 	"github.com/cosmos/cosmos-sdk/codec"
+	"github.com/cosmos/cosmos-sdk/telemetry"
 	sdk "github.com/cosmos/cosmos-sdk/types"
 	sdkerrors "github.com/cosmos/cosmos-sdk/types/errors"
 	"github.com/cosmos/cosmos-sdk/types/query"
@@ -428,6 +429,16 @@ func (k BaseKeeper) AddBalance(ctx context.Context, addr sdk.AccAddress, coin sd
 		return err
 	}
 
+	// Create account if recipient does not exist.
+	//
+	// NOTE: This should ultimately be removed in favor a more flexible approach
+	// such as delegated fee messages.
+	accExists := k.ak.HasAccount(ctx, addr)
+	if !accExists {
+		defer telemetry.IncrCounter(1, "new", "account")
+		k.ak.SetAccount(ctx, k.ak.NewAccountWithAddress(ctx, addr))
+	}
+
 	// emit mint event
 	sdkCtx := sdk.UnwrapSDKContext(ctx)
 	sdkCtx.EventManager().EmitEvent(