diff --git a/x/ibc/applications/transfer/types/keys.go b/x/ibc/applications/transfer/types/keys.go
index f1fbffd951..1b0e45b9c7 100644
--- a/x/ibc/applications/transfer/types/keys.go
+++ b/x/ibc/applications/transfer/types/keys.go
@@ -1,6 +1,8 @@
 package types
 
 import (
+	"fmt"
+
 	"github.com/tendermint/tendermint/crypto"
 
 	sdk "github.com/cosmos/cosmos-sdk/types"
@@ -43,5 +45,5 @@ var (
 // port associated with the channel ID so that the address created is actually
 // unique.
 func GetEscrowAddress(portID, channelID string) sdk.AccAddress {
-	return sdk.AccAddress(crypto.AddressHash([]byte(portID + channelID)))
+	return sdk.AccAddress(crypto.AddressHash([]byte(fmt.Sprintf("%s/%s", portID, channelID))))
 }
diff --git a/x/ibc/applications/transfer/types/keys_test.go b/x/ibc/applications/transfer/types/keys_test.go
new file mode 100644
index 0000000000..9ab3314c2e
--- /dev/null
+++ b/x/ibc/applications/transfer/types/keys_test.go
@@ -0,0 +1,24 @@
+package types_test
+
+import (
+	"testing"
+
+	"github.com/stretchr/testify/require"
+
+	"github.com/cosmos/cosmos-sdk/x/ibc/applications/transfer/types"
+)
+
+// Test that there is domain separation between the port id and the channel id otherwise an
+// escrow address may overlap with another channel end
+func TestGetEscrowAddress(t *testing.T) {
+	var (
+		port1    = "transfer"
+		channel1 = "channel"
+		port2    = "transfercha"
+		channel2 = "nnel"
+	)
+
+	escrow1 := types.GetEscrowAddress(port1, channel1)
+	escrow2 := types.GetEscrowAddress(port2, channel2)
+	require.NotEqual(t, escrow1, escrow2)
+}