diff --git a/PENDING.md b/PENDING.md
index a8f278ebb469..4720ec774c1a 100644
--- a/PENDING.md
+++ b/PENDING.md
@@ -80,6 +80,7 @@ BUG FIXES
 * SDK
 
   - \#2733 [x/gov, x/mock/simulation] Fix governance simulation, update x/gov import/export
+  - \#2854 [x/bank] Remove unused bank.MsgIssue, prevent possible panic
 
 * Tendermint
   * [\#2797](https://github.com/tendermint/tendermint/pull/2797) AddressBook requires addresses to have IDs; Do not crap out immediately after sending pex addrs in seed mode
diff --git a/x/bank/codec.go b/x/bank/codec.go
index bcc2cbddaa65..2195e4853a0e 100644
--- a/x/bank/codec.go
+++ b/x/bank/codec.go
@@ -7,7 +7,6 @@ import (
 // Register concrete types on codec codec
 func RegisterCodec(cdc *codec.Codec) {
 	cdc.RegisterConcrete(MsgSend{}, "cosmos-sdk/Send", nil)
-	cdc.RegisterConcrete(MsgIssue{}, "cosmos-sdk/Issue", nil)
 }
 
 var msgCdc = codec.New()
diff --git a/x/bank/handler.go b/x/bank/handler.go
index e02043d7b4f1..ea3ee4398c43 100644
--- a/x/bank/handler.go
+++ b/x/bank/handler.go
@@ -10,8 +10,6 @@ func NewHandler(k Keeper) sdk.Handler {
 		switch msg := msg.(type) {
 		case MsgSend:
 			return handleMsgSend(ctx, k, msg)
-		case MsgIssue:
-			return handleMsgIssue(ctx, k, msg)
 		default:
 			errMsg := "Unrecognized bank Msg type: %s" + msg.Type()
 			return sdk.ErrUnknownRequest(errMsg).Result()
@@ -32,8 +30,3 @@ func handleMsgSend(ctx sdk.Context, k Keeper, msg MsgSend) sdk.Result {
 		Tags: tags,
 	}
 }
-
-// Handle MsgIssue.
-func handleMsgIssue(ctx sdk.Context, k Keeper, msg MsgIssue) sdk.Result {
-	panic("not implemented yet")
-}
diff --git a/x/bank/msgs.go b/x/bank/msgs.go
index a1c346a88d80..1af7acfe73dd 100644
--- a/x/bank/msgs.go
+++ b/x/bank/msgs.go
@@ -86,65 +86,6 @@ func (msg MsgSend) GetSigners() []sdk.AccAddress {
 	return addrs
 }
 
-//----------------------------------------
-// MsgIssue
-
-// MsgIssue - high level transaction of the coin module
-type MsgIssue struct {
-	Banker  sdk.AccAddress `json:"banker"`
-	Outputs []Output       `json:"outputs"`
-}
-
-var _ sdk.Msg = MsgIssue{}
-
-// NewMsgIssue - construct arbitrary multi-in, multi-out send msg.
-func NewMsgIssue(banker sdk.AccAddress, out []Output) MsgIssue {
-	return MsgIssue{Banker: banker, Outputs: out}
-}
-
-// Implements Msg.
-// nolint
-func (msg MsgIssue) Route() string { return "bank" } // TODO: "bank/issue"
-func (msg MsgIssue) Type() string  { return "issue" }
-
-// Implements Msg.
-func (msg MsgIssue) ValidateBasic() sdk.Error {
-	// XXX
-	if len(msg.Outputs) == 0 {
-		return ErrNoOutputs(DefaultCodespace).TraceSDK("")
-	}
-	for _, out := range msg.Outputs {
-		if err := out.ValidateBasic(); err != nil {
-			return err.TraceSDK("")
-		}
-	}
-	return nil
-}
-
-// Implements Msg.
-func (msg MsgIssue) GetSignBytes() []byte {
-	var outputs []json.RawMessage
-	for _, output := range msg.Outputs {
-		outputs = append(outputs, output.GetSignBytes())
-	}
-	b, err := msgCdc.MarshalJSON(struct {
-		Banker  sdk.AccAddress    `json:"banker"`
-		Outputs []json.RawMessage `json:"outputs"`
-	}{
-		Banker:  msg.Banker,
-		Outputs: outputs,
-	})
-	if err != nil {
-		panic(err)
-	}
-	return sdk.MustSortJSON(b)
-}
-
-// Implements Msg.
-func (msg MsgIssue) GetSigners() []sdk.AccAddress {
-	return []sdk.AccAddress{msg.Banker}
-}
-
 //----------------------------------------
 // Input
 
diff --git a/x/bank/msgs_test.go b/x/bank/msgs_test.go
index 157cc9b5b95b..14e9a4c7094a 100644
--- a/x/bank/msgs_test.go
+++ b/x/bank/msgs_test.go
@@ -223,48 +223,3 @@ func TestMsgSendSigners(t *testing.T) {
 	require.Equal(t, signers, tx.Signers())
 }
 */
-
-// ----------------------------------------
-// MsgIssue Tests
-
-func TestNewMsgIssue(t *testing.T) {
-	// TODO
-}
-
-func TestMsgIssueRoute(t *testing.T) {
-	// Construct an MsgIssue
-	addr := sdk.AccAddress([]byte("loan-from-bank"))
-	coins := sdk.Coins{sdk.NewInt64Coin("atom", 10)}
-	var msg = MsgIssue{
-		Banker:  sdk.AccAddress([]byte("input")),
-		Outputs: []Output{NewOutput(addr, coins)},
-	}
-
-	// TODO some failures for bad result
-	require.Equal(t, msg.Route(), "bank")
-}
-
-func TestMsgIssueValidation(t *testing.T) {
-	// TODO
-}
-
-func TestMsgIssueGetSignBytes(t *testing.T) {
-	addr := sdk.AccAddress([]byte("loan-from-bank"))
-	coins := sdk.Coins{sdk.NewInt64Coin("atom", 10)}
-	var msg = MsgIssue{
-		Banker:  sdk.AccAddress([]byte("input")),
-		Outputs: []Output{NewOutput(addr, coins)},
-	}
-	res := msg.GetSignBytes()
-
-	expected := `{"banker":"cosmos1d9h8qat57ljhcm","outputs":[{"address":"cosmos1d3hkzm3dveex7mfdvfsku6cjngpcj","coins":[{"amount":"10","denom":"atom"}]}]}`
-	require.Equal(t, expected, string(res))
-}
-
-func TestMsgIssueGetSigners(t *testing.T) {
-	var msg = MsgIssue{
-		Banker: sdk.AccAddress([]byte("onlyone")),
-	}
-	res := msg.GetSigners()
-	require.Equal(t, fmt.Sprintf("%v", res), "[6F6E6C796F6E65]")
-}
diff --git a/x/ibc/ibc_test.go b/x/ibc/ibc_test.go
index 6cd89fded4ea..94c3c7a2ecb2 100644
--- a/x/ibc/ibc_test.go
+++ b/x/ibc/ibc_test.go
@@ -44,7 +44,6 @@ func makeCodec() *codec.Codec {
 	// Register Msgs
 	cdc.RegisterInterface((*sdk.Msg)(nil), nil)
 	cdc.RegisterConcrete(bank.MsgSend{}, "test/ibc/Send", nil)
-	cdc.RegisterConcrete(bank.MsgIssue{}, "test/ibc/Issue", nil)
 	cdc.RegisterConcrete(IBCTransferMsg{}, "test/ibc/IBCTransferMsg", nil)
 	cdc.RegisterConcrete(IBCReceiveMsg{}, "test/ibc/IBCReceiveMsg", nil)
 
diff --git a/x/stake/keeper/test_common.go b/x/stake/keeper/test_common.go
index af7e688f3215..65445cbb1fa3 100644
--- a/x/stake/keeper/test_common.go
+++ b/x/stake/keeper/test_common.go
@@ -60,7 +60,6 @@ func MakeTestCodec() *codec.Codec {
 	// Register Msgs
 	cdc.RegisterInterface((*sdk.Msg)(nil), nil)
 	cdc.RegisterConcrete(bank.MsgSend{}, "test/stake/Send", nil)
-	cdc.RegisterConcrete(bank.MsgIssue{}, "test/stake/Issue", nil)
 	cdc.RegisterConcrete(types.MsgCreateValidator{}, "test/stake/CreateValidator", nil)
 	cdc.RegisterConcrete(types.MsgEditValidator{}, "test/stake/EditValidator", nil)
 	cdc.RegisterConcrete(types.MsgBeginUnbonding{}, "test/stake/BeginUnbonding", nil)