diff --git a/CHANGELOG.md b/CHANGELOG.md
index a9d9d2f104..ecba003625 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -36,6 +36,7 @@ BREAKING CHANGES
     to an infraction, slash them proportional to their stake at the time
   * Add REST endpoint to unrevoke a validator previously revoked for downtime
   * Add REST endpoint to retrieve liveness signing information for a validator
+* [lcd] Switch key creation output to return bech32
 
 FEATURES
 * [gaiacli] You can now attach a simple text-only memo to any transaction, with the `--memo` flag
diff --git a/client/keys/add.go b/client/keys/add.go
index 12ad97ee8a..216f84c2ac 100644
--- a/client/keys/add.go
+++ b/client/keys/add.go
@@ -7,6 +7,7 @@ import (
 	"net/http"
 
 	"github.com/cosmos/cosmos-sdk/client"
+	sdk "github.com/cosmos/cosmos-sdk/types"
 	"github.com/gorilla/mux"
 	"github.com/pkg/errors"
 	"github.com/spf13/cobra"
@@ -215,8 +216,14 @@ func AddNewKeyRequestHandler(w http.ResponseWriter, r *http.Request) {
 		w.Write([]byte(err.Error()))
 		return
 	}
+	bech32Account, err := sdk.Bech32ifyAcc(sdk.Address(info.GetPubKey().Address().Bytes()))
+	if err != nil {
+		w.WriteHeader(http.StatusInternalServerError)
+		w.Write([]byte(err.Error()))
+		return
+	}
 	bz, err := json.Marshal(NewKeyResponse{
-		Address:  info.GetPubKey().Address().String(),
+		Address:  bech32Account,
 		Mnemonic: mnemonic,
 	})
 	if err != nil {
diff --git a/client/lcd/lcd_test.go b/client/lcd/lcd_test.go
index 2c46c5ffb7..bb2a205a96 100644
--- a/client/lcd/lcd_test.go
+++ b/client/lcd/lcd_test.go
@@ -8,7 +8,6 @@ import (
 	"testing"
 
 	"github.com/spf13/viper"
-	"github.com/stretchr/testify/assert"
 	"github.com/stretchr/testify/require"
 
 	cryptoKeys "github.com/cosmos/cosmos-sdk/crypto/keys"
@@ -59,9 +58,11 @@ func TestKeys(t *testing.T) {
 	require.Equal(t, http.StatusOK, res.StatusCode, body)
 	var resp keys.NewKeyResponse
 	err = wire.Cdc.UnmarshalJSON([]byte(body), &resp)
-	require.Nil(t, err)
-	addr2 := resp.Address
-	assert.Len(t, addr2, 40, "Returned address has wrong format", addr2)
+	require.Nil(t, err, body)
+
+	addr2Bech32 := resp.Address
+	_, err = sdk.GetAccAddressBech32(addr2Bech32)
+	require.NoError(t, err, "Failed to return a correct bech32 address")
 
 	// existing keys
 	res, body = Request(t, port, "GET", "/keys", nil)
@@ -70,9 +71,6 @@ func TestKeys(t *testing.T) {
 	err = cdc.UnmarshalJSON([]byte(body), &m)
 	require.Nil(t, err)
 
-	addr2Acc, err := sdk.GetAccAddressHex(addr2)
-	require.Nil(t, err)
-	addr2Bech32 := sdk.MustBech32ifyAcc(addr2Acc)
 	addrBech32 := sdk.MustBech32ifyAcc(addr)
 
 	require.Equal(t, name, m[0].Name, "Did not serve keys name correctly")