diff --git a/src/services/transactionService.js b/src/services/transactionService.js
new file mode 100644
index 0000000..ff33839
--- /dev/null
+++ b/src/services/transactionService.js
@@ -0,0 +1,56 @@
+const TransactionModel = require('../models/Transaction'); // Assuming you have a Transaction model
+const { sendPayment } = require('../api/stellar'); // Import Stellar API integration
+
+// Function to create a new transaction
+async function createTransaction(userId, destinationId, amount) {
+    try {
+        const transaction = new TransactionModel({
+            userId,
+            destinationId,
+            amount,
+            status: 'pending',
+            createdAt: new Date(),
+        });
+        await transaction.save();
+        return transaction;
+    } catch (error) {
+        console.error('Error creating transaction:', error);
+        throw new Error('Transaction creation failed');
+    }
+}
+
+// Function to execute a transaction
+async function executeTransaction(transactionId, sourceSecret) {
+    try {
+        const transaction = await TransactionModel.findById(transactionId);
+        if (!transaction) {
+            throw new Error('Transaction not found');
+        }
+        if (transaction.status !== 'pending') {
+            throw new Error('Transaction already executed or canceled');
+        }
+
+        const result = await sendPayment(sourceSecret, transaction.destinationId, transaction.amount);
+        transaction.status = 'completed';
+        transaction.transactionHash = result.hash; // Assuming the result contains a hash
+        await transaction.save();
+
+        return transaction;
+    } catch (error) {
+        console.error('Error executing transaction:', error);
+        throw new Error('Transaction execution failed');
+    }
+}
+
+// Function to get transaction history for a user
+async function getUser TransactionHistory(userId) {
+    try {
+        const transactions = await TransactionModel.find({ userId }).sort({ createdAt: -1 });
+        return transactions;
+    } catch (error) {
+        console.error('Error fetching user transaction history:', error);
+        throw new Error('Unable to fetch transaction history');
+    }
+}
+
+module.exports = { createTransaction, executeTransaction, getUser TransactionHistory };