diff --git a/app/app.go b/app/app.go
index 91fb05ead7..8b90107156 100644
--- a/app/app.go
+++ b/app/app.go
@@ -343,10 +343,10 @@ func New(
 		packetforwardkeeper.DefaultRefundTransferPacketTimeoutTimestamp,  // refund timeout
 	)
 	// PacketForwardMiddleware is used only for version 2.
-	transferStack = module.NewVersionedIBCModule(packetForwardMiddleware, transferStack, v2, v2)
+	transferStack = module.NewVersionedIBCModule(packetForwardMiddleware, transferStack, v2, v3)
 	// Token filter wraps packet forward middleware and is thus the first module in the transfer stack.
 	tokenFilterMiddelware := tokenfilter.NewIBCMiddleware(transferStack)
-	transferStack = module.NewVersionedIBCModule(tokenFilterMiddelware, transferStack, v1, v2)
+	transferStack = module.NewVersionedIBCModule(tokenFilterMiddelware, transferStack, v1, v3)
 
 	app.EvidenceKeeper = *evidencekeeper.NewKeeper(
 		appCodec,
diff --git a/app/module/versioned_ibc_module_test.go b/app/module/versioned_ibc_module_test.go
index 8d2fb23d0e..57f94ec9f9 100644
--- a/app/module/versioned_ibc_module_test.go
+++ b/app/module/versioned_ibc_module_test.go
@@ -23,7 +23,7 @@ func TestVersionedIBCModule(t *testing.T) {
 	mockWrappedModule := mocks.NewMockIBCModule(ctrl)
 	mockNextModule := mocks.NewMockIBCModule(ctrl)
 
-	versionedModule := module.NewVersionedIBCModule(mockWrappedModule, mockNextModule, 2, 2)
+	versionedModule := module.NewVersionedIBCModule(mockWrappedModule, mockNextModule, 2, 3)
 
 	testCases := []struct {
 		name          string