diff --git a/x/auth/types/credentials.go b/x/auth/types/credentials.go
index 5580f9a4d2c6..763268962194 100644
--- a/x/auth/types/credentials.go
+++ b/x/auth/types/credentials.go
@@ -62,7 +62,28 @@ func (m *ModuleCredential) VerifySignature(_ []byte, _ []byte) bool {
 }
 
 func (m *ModuleCredential) Equals(other cryptotypes.PubKey) bool {
-	return m.String() == other.String()
+	om, ok := other.(*ModuleCredential)
+	if !ok {
+		return false
+	}
+
+	if m.ModuleName != om.ModuleName {
+		return false
+	}
+
+	if len(m.DerivationKeys) != len(om.DerivationKeys) {
+		return false
+	}
+
+	for i := range m.DerivationKeys {
+		for j := range m.DerivationKeys[i] {
+			if m.DerivationKeys[i][j] != om.DerivationKeys[i][j] {
+				return false
+			}
+		}
+	}
+
+	return true
 }
 
 func (m *ModuleCredential) Type() string {
diff --git a/x/auth/types/credentials_test.go b/x/auth/types/credentials_test.go
index 183787b87520..39cc07f22327 100644
--- a/x/auth/types/credentials_test.go
+++ b/x/auth/types/credentials_test.go
@@ -18,8 +18,9 @@ func TestNewModuleCrendentials(t *testing.T) {
 	require.NoError(t, err)
 	require.Equal(t, expected.String(), addr.String())
 
-	require.Equal(t, credential, authtypes.NewModuleCredential("group", [][]byte{{0x20}, {0x0}}))
-	require.NotEqual(t, credential, authtypes.NewModuleCredential("group", [][]byte{{0x20}, {0x1}}))
+	require.True(t, credential.Equals(authtypes.NewModuleCredential("group", [][]byte{{0x20}, {0x0}})))
+	require.False(t, credential.Equals(authtypes.NewModuleCredential("group", [][]byte{{0x20}, {0x1}})))
+	require.False(t, credential.Equals(authtypes.NewModuleCredential("group", [][]byte{{0x20}})))
 }
 
 func TestNewBaseAccountWithPubKey(t *testing.T) {