diff --git a/apps/backend/src/modules/auth/controllers/auth.controller.ts b/apps/backend/src/modules/auth/controllers/auth.controller.ts
index c43f625..e3f8852 100644
--- a/apps/backend/src/modules/auth/controllers/auth.controller.ts
+++ b/apps/backend/src/modules/auth/controllers/auth.controller.ts
@@ -7,10 +7,15 @@ import {
   Req,
   HttpCode,
   HttpStatus,
+  Param,
+  BadRequestException,
+  NotFoundException,
 } from '@nestjs/common';
 import { Request } from 'express';
 import { ThrottlerGuard } from '@nestjs/throttler';
+import { StrKey } from '@stellar/stellar-sdk';
 import { AuthService } from '../services/auth.service';
+import { UserService } from '../../user/user.service';
 import {
   ChallengeDto,
   VerifyDto,
@@ -22,7 +27,28 @@ import { AuthGuard } from '../middleware/auth.guard';
 @Controller('auth')
 @UseGuards(ThrottlerGuard)
 export class AuthController {
-  constructor(private readonly authService: AuthService) {}
+  constructor(
+    private readonly authService: AuthService,
+    private readonly userService: UserService,
+  ) {}
+
+  /**
+   * Resolve a Vaultix user id by Stellar wallet address (counterparty must have signed in once).
+   */
+  @Get('wallet/:address')
+  @UseGuards(AuthGuard)
+  async getUserByWallet(@Param('address') address: string) {
+    if (!StrKey.isValidEd25519PublicKey(address)) {
+      throw new BadRequestException('Invalid Stellar address');
+    }
+    const user = await this.userService.findByWalletAddress(address);
+    if (!user) {
+      throw new NotFoundException(
+        'No Vaultix account exists for this wallet address',
+      );
+    }
+    return { id: user.id, walletAddress: user.walletAddress };
+  }
 
   @Post('challenge')
   @HttpCode(HttpStatus.OK)
diff --git a/apps/backend/src/modules/auth/middleware/auth.guard.ts b/apps/backend/src/modules/auth/middleware/auth.guard.ts
index fd9ea0c..68defe4 100644
--- a/apps/backend/src/modules/auth/middleware/auth.guard.ts
+++ b/apps/backend/src/modules/auth/middleware/auth.guard.ts
@@ -21,7 +21,10 @@ export class AuthGuard implements CanActivate {
 
     try {
       const payload = await this.authService.validateToken(token);
-      request['user'] = payload;
+      request['user'] = {
+        ...payload,
+        sub: payload.userId,
+      };
       return true;
     } catch {
       throw new UnauthorizedException('Invalid or expired token');
diff --git a/apps/backend/src/modules/escrow/controllers/escrow.controller.ts b/apps/backend/src/modules/escrow/controllers/escrow.controller.ts
index 6ea4fb2..4dca56b 100644
--- a/apps/backend/src/modules/escrow/controllers/escrow.controller.ts
+++ b/apps/backend/src/modules/escrow/controllers/escrow.controller.ts
@@ -89,6 +89,22 @@ export class EscrowController {
     return this.escrowService.findOverview(userId, query);
   }
 
+  @Get(':id/fund/prepare')
+  @UseGuards(EscrowAccessGuard)
+  @ApiOperation({
+    summary: 'Get unsigned funding transaction XDR for wallet signing',
+  })
+  async prepareFund(
+    @Param('id') id: string,
+    @Request() req: AuthenticatedRequest,
+  ) {
+    return this.escrowService.prepareFund(
+      id,
+      req.user.sub,
+      req.user.walletAddress,
+    );
+  }
+
   @Get(':id')
   @UseGuards(EscrowAccessGuard)
   async findOne(@Param('id') id: string) {
diff --git a/apps/backend/src/modules/escrow/dto/fund-escrow.dto.ts b/apps/backend/src/modules/escrow/dto/fund-escrow.dto.ts
index cd2e6ab..799c72e 100644
--- a/apps/backend/src/modules/escrow/dto/fund-escrow.dto.ts
+++ b/apps/backend/src/modules/escrow/dto/fund-escrow.dto.ts
@@ -1,7 +1,12 @@
-import { IsNumber, IsPositive } from 'class-validator';
+import { IsNumber, IsOptional, IsPositive, IsString } from 'class-validator';
 
 export class FundEscrowDto {
   @IsNumber()
   @IsPositive()
   amount: number;
+
+  /** Base64-encoded signed transaction envelope (wallet-signed funding tx). */
+  @IsOptional()
+  @IsString()
+  signedTransactionXdr?: string;
 }
diff --git a/apps/backend/src/modules/escrow/services/escrow-stellar-integration.service.ts b/apps/backend/src/modules/escrow/services/escrow-stellar-integration.service.ts
index 1a42508..120a10e 100644
--- a/apps/backend/src/modules/escrow/services/escrow-stellar-integration.service.ts
+++ b/apps/backend/src/modules/escrow/services/escrow-stellar-integration.service.ts
@@ -2,6 +2,7 @@ import { Injectable, Logger, Inject } from '@nestjs/common';
 import { ConfigType } from '@nestjs/config';
 import { InjectRepository } from '@nestjs/typeorm';
 import { Repository } from 'typeorm';
+import * as StellarSdk from '@stellar/stellar-sdk';
 import { Escrow } from '../entities/escrow.entity';
 import { Party } from '../entities/party.entity';
 import { Condition } from '../entities/condition.entity';
@@ -42,7 +43,7 @@ export class EscrowStellarIntegrationService {
       // Get the escrow from the database
       const escrow = await this.escrowRepository.findOne({
         where: { id: escrowId },
-        relations: ['parties', 'conditions'],
+        relations: ['parties', 'parties.user', 'conditions'],
       });
 
       if (!escrow) {
@@ -51,20 +52,28 @@ export class EscrowStellarIntegrationService {
 
       // Get the depositor (usually the buyer)
       const depositor = escrow.parties.find(
-        (party) => party.role === ('buyer' as any),
+        (party) => party.role === ('buyer' as any)
       );
       if (!depositor) {
         throw new Error(`Depositor not found for escrow ${escrowId}`);
       }
 
+      if (!depositor.user?.walletAddress) {
+        throw new Error(`Depositor wallet address not found for escrow ${escrowId}`);
+      }
+
       // Get the recipient (usually the seller)
       const recipient = escrow.parties.find(
-        (party) => party.role === ('seller' as any),
+        (party) => party.role === ('seller' as any)
       );
       if (!recipient) {
         throw new Error(`Recipient not found for escrow ${escrowId}`);
       }
 
+      if (!recipient.user?.walletAddress) {
+        throw new Error(`Recipient wallet address not found for escrow ${escrowId}`);
+      }
+
       // Convert conditions to milestones format
       const milestones = escrow.conditions.map((condition, index) => ({
         id: index,
@@ -78,18 +87,18 @@ export class EscrowStellarIntegrationService {
       const operations =
         this.escrowOperationsService.createEscrowInitializationOps(
           escrowId,
-          depositor.user.walletAddress, // User's Stellar wallet address
-          recipient.user.walletAddress, // User's Stellar wallet address
-          'native', // Using XLM as the asset for this example
+          depositor.user.walletAddress,
+          recipient.user.walletAddress,
+          'native',
           milestones,
           escrow.expiresAt
             ? Math.floor(new Date(escrow.expiresAt).getTime() / 1000)
-            : Math.floor(Date.now() / 1000) + 86400, // Convert to Unix timestamp or default to 24 hours
+            : Math.floor(Date.now() / 1000) + 86400,
         );
 
       // Build the transaction
       const transaction = await this.stellarService.buildTransaction(
-        depositor.user.walletAddress, // Source account
+        depositor.user.walletAddress,
         operations,
       );
 
@@ -110,13 +119,48 @@ export class EscrowStellarIntegrationService {
   }
 
   /**
-   * Funds an escrow on the Stellar blockchain
-   * @param escrowId The ID of the escrow to fund
-   * @param funderPublicKey The public key of the account funding the escrow
-   * @param amount The amount to fund
-   * @param assetCode The asset code (e.g., 'XLM' or custom asset)
-   * @returns Transaction hash of the funding transaction
+   * Builds an unsigned funding transaction (for client-side wallet signing).
    */
+  async buildFundOnChainEscrowTransaction(
+    escrowId: string,
+    funderPublicKey: string,
+    amount: string,
+    assetCode: string = 'XLM',
+  ) {
+    this.logger.log(
+      `Building funding transaction for escrow ${escrowId}, amount: ${amount} ${assetCode}`,
+    );
+
+    const asset = this.getAssetFromCode(assetCode, funderPublicKey);
+
+    const operations = this.escrowOperationsService.createFundingOps(
+      escrowId,
+      funderPublicKey,
+      amount,
+      asset,
+    );
+
+    return this.stellarService.buildTransaction(
+      funderPublicKey,
+      operations,
+    );
+  }
+
+  async prepareFundTransactionXdr(
+    escrowId: string,
+    funderPublicKey: string,
+    amount: string,
+    assetCode: string = 'XLM',
+  ): Promise<string> {
+    const tx = await this.buildFundOnChainEscrowTransaction(
+      escrowId,
+      funderPublicKey,
+      amount,
+      assetCode,
+    );
+    return tx.toXDR();
+  }
+
   async fundOnChainEscrow(
     escrowId: string,
     funderPublicKey: string,
@@ -128,23 +172,13 @@ export class EscrowStellarIntegrationService {
         `Funding on-chain escrow ${escrowId} with ${amount} ${assetCode}`,
       );
 
-      // Determine asset (unused but kept logic if needed later, currently causing lint error)
-      // const asset =
-      //   assetCode === 'XLM' || assetCode === 'native'
-      //     ? StellarSdk.Asset.native()
-      //     : new StellarSdk.Asset(assetCode, funderPublicKey);
-
-      // Create funding operations
-      const operations =
-        this.escrowOperationsService.createFundingOps(escrowId);
-
-      // Build the transaction
-      const transaction = await this.stellarService.buildTransaction(
-        funderPublicKey, // Source account
-        operations,
+      const transaction = await this.buildFundOnChainEscrowTransaction(
+        escrowId,
+        funderPublicKey,
+        amount,
+        assetCode,
       );
 
-      // Submit the transaction to the Stellar network
       const result: StellarSubmitTransactionResponse =
         await this.stellarService.submitTransaction(transaction);
 
@@ -174,24 +208,31 @@ export class EscrowStellarIntegrationService {
     escrowId: string,
     milestoneId: number,
     releaserPublicKey: string,
-    // recipientPublicKey: string,
-    // amount: string,
-    // assetCode: string = 'XLM',
+    recipientPublicKey: string,
+    amount: string,
+    assetCode: string = 'XLM',
   ): Promise<string> {
     try {
       this.logger.log(
         `Releasing milestone ${milestoneId} for escrow ${escrowId}`,
       );
 
+      // Get the asset
+      const asset = this.getAssetFromCode(assetCode, recipientPublicKey);
+
       // Create milestone release operations
       const operations = this.escrowOperationsService.createMilestoneReleaseOps(
         escrowId,
         milestoneId,
+        releaserPublicKey,
+        recipientPublicKey,
+        amount,
+        asset,
       );
 
       // Build the transaction
       const transaction = await this.stellarService.buildTransaction(
-        releaserPublicKey, // Source account
+        releaserPublicKey,
         operations,
       );
 
@@ -215,29 +256,29 @@ export class EscrowStellarIntegrationService {
    * Confirms delivery/acceptance of an escrow on the Stellar blockchain
    * @param escrowId The ID of the escrow to confirm
    * @param confirmerPublicKey The public key of the account confirming
-   * @param milestoneId The milestone ID
+   * @param confirmationStatus The status of the confirmation
    * @returns Transaction hash of the confirmation transaction
    */
   async confirmEscrow(
     escrowId: string,
     confirmerPublicKey: string,
-    milestoneId: number,
+    confirmationStatus: 'confirmed' | 'disputed' | 'released' = 'confirmed',
   ): Promise<string> {
     try {
       this.logger.log(
-        `Confirming escrow ${escrowId} for milestone: ${milestoneId}`,
+        `Confirming escrow ${escrowId} with status: ${confirmationStatus}`,
       );
 
       // Create confirmation operations
       const operations = this.escrowOperationsService.createConfirmationOps(
         escrowId,
         confirmerPublicKey,
-        milestoneId,
+        confirmationStatus,
       );
 
       // Build the transaction
       const transaction = await this.stellarService.buildTransaction(
-        confirmerPublicKey, // Source account
+        confirmerPublicKey,
         operations,
       );
 
@@ -246,7 +287,7 @@ export class EscrowStellarIntegrationService {
         await this.stellarService.submitTransaction(transaction);
 
       this.logger.log(
-        `Successfully confirmed milestone ${milestoneId} for escrow ${escrowId}, transaction: ${result.hash}`,
+        `Successfully confirmed escrow ${escrowId} with status ${confirmationStatus}, transaction: ${result.hash}`,
       );
       return result.hash;
     } catch (error) {
@@ -261,24 +302,24 @@ export class EscrowStellarIntegrationService {
    * Cancels an escrow on the Stellar blockchain
    * @param escrowId The ID of the escrow to cancel
    * @param cancellerPublicKey The public key of the account canceling
-   * @param refundDestination The destination for refunded funds
    * @returns Transaction hash of the cancellation transaction
    */
   async cancelOnChainEscrow(
     escrowId: string,
     cancellerPublicKey: string,
-
-    // refundDestination: string,
   ): Promise<string> {
     try {
       this.logger.log(`Canceling on-chain escrow ${escrowId}`);
 
       // Create cancel operations
-      const operations = this.escrowOperationsService.createCancelOps(escrowId);
+      const operations = this.escrowOperationsService.createCancelOps(
+        escrowId,
+        cancellerPublicKey,
+      );
 
       // Build the transaction
       const transaction = await this.stellarService.buildTransaction(
-        cancellerPublicKey, // Source account
+        cancellerPublicKey,
         operations,
       );
 
@@ -312,12 +353,14 @@ export class EscrowStellarIntegrationService {
       this.logger.log(`Completing on-chain escrow ${escrowId}`);
 
       // Create completion operations
-      const operations =
-        this.escrowOperationsService.createCompletionOps(escrowId);
+      const operations = this.escrowOperationsService.createCompletionOps(
+        escrowId,
+        completerPublicKey,
+      );
 
       // Build the transaction
       const transaction = await this.stellarService.buildTransaction(
-        completerPublicKey, // Source account
+        completerPublicKey,
         operations,
       );
 
@@ -342,12 +385,14 @@ export class EscrowStellarIntegrationService {
    * @param escrowId The ID of the escrow to monitor
    * @param accountPublicKey The public key of the account to monitor
    * @param callback Callback function to handle state changes
+   * @param onError Optional error callback
    * @returns EventSource object for stream control
    */
   monitorOnChainEscrow(
     escrowId: string,
     accountPublicKey: string,
     callback: (transaction: StellarTransactionResponse) => void,
+    onError?: (error: Error) => void,
   ): EventSource {
     this.logger.log(
       `Starting to monitor on-chain escrow ${escrowId} for account: ${accountPublicKey}`,
@@ -355,26 +400,58 @@ export class EscrowStellarIntegrationService {
 
     // Create a wrapper callback that filters for our escrow-related transactions
     const filteredCallback = (transaction: StellarTransactionResponse) => {
-      // Check if this transaction relates to our escrow
-      const isEscrowRelated =
-        transaction.memo &&
-        typeof transaction.memo === 'string' &&
-        transaction.memo.includes(escrowId);
-
-      if (isEscrowRelated) {
-        this.logger.log(
-          `Detected escrow ${escrowId} related transaction: ${transaction.hash}`,
+      try {
+        // Check if this transaction relates to our escrow
+        const isEscrowRelated =
+          transaction.memo &&
+          typeof transaction.memo === 'string' &&
+          transaction.memo.includes(escrowId);
+
+        if (isEscrowRelated) {
+          this.logger.log(
+            `Detected escrow ${escrowId} related transaction: ${transaction.hash}`,
+          );
+          callback(transaction);
+        }
+      } catch (error) {
+        this.logger.error(
+          `Error processing transaction for escrow ${escrowId}: ${this.getErrorMessage(error)}`,
         );
-        callback(transaction);
+        if (onError) {
+          onError(error instanceof Error ? error : new Error(String(error)));
+        }
       }
     };
 
     // Stream transactions for the account
-    // eslint-disable-next-line @typescript-eslint/no-unsafe-return
-    return this.stellarService.streamTransactions(
-      accountPublicKey,
-      filteredCallback,
-    );
+    try {
+      return this.stellarService.streamTransactions(
+        accountPublicKey,
+        filteredCallback,
+      ) as unknown as EventSource;
+    } catch (error) {
+      this.logger.error(
+        `Failed to start monitoring escrow ${escrowId}: ${this.getErrorMessage(error)}`,
+      );
+      throw error;
+    }
+  }
+
+  /**
+   * Helper method to get Stellar asset from code and issuer
+   */
+  private getAssetFromCode(assetCode: string, issuerPublicKey?: string): StellarSdk.Asset {
+    // Handle native asset (XLM)
+    if (assetCode === 'XLM' || assetCode === 'native') {
+      return StellarSdk.Asset.native();
+    }
+
+    // For custom assets, issuer is required
+    if (!issuerPublicKey) {
+      throw new Error(`Issuer public key is required for asset ${assetCode}`);
+    }
+
+    return new StellarSdk.Asset(assetCode, issuerPublicKey);
   }
 
   /**
@@ -385,9 +462,19 @@ export class EscrowStellarIntegrationService {
       return error.message;
     }
     if (typeof error === 'object' && error !== null && 'message' in error) {
-      // eslint-disable-next-line @typescript-eslint/no-unsafe-member-access
-      return String((error as any).message);
+      const err = error as { message: unknown };
+      if (typeof err.message === 'string') {
+        return err.message;
+      }
+      if (typeof err.message === 'object' && err.message !== null) {
+        try {
+          return JSON.stringify(err.message);
+        } catch {
+          return '[Object]';
+        }
+      }
+      return String(err.message);
     }
-    return 'Unknown error';
+    return String(error);
   }
-}
+}
\ No newline at end of file
diff --git a/apps/backend/src/modules/escrow/services/escrow.service.spec.ts b/apps/backend/src/modules/escrow/services/escrow.service.spec.ts
index 3b6e1c7..8552758 100644
--- a/apps/backend/src/modules/escrow/services/escrow.service.spec.ts
+++ b/apps/backend/src/modules/escrow/services/escrow.service.spec.ts
@@ -22,6 +22,7 @@ import {
 } from '@nestjs/common';
 import { EscrowStellarIntegrationService } from './escrow-stellar-integration.service';
 import { WebhookService } from '../../../services/webhook/webhook.service';
+import { StellarService } from '../../../services/stellar.service';
 import {
   EscrowOverviewRole,
   EscrowOverviewSortBy,
@@ -127,6 +128,17 @@ describe('EscrowService', () => {
           useValue: {
             completeOnChainEscrow: jest.fn().mockResolvedValue('mock-tx-hash'),
             fundOnChainEscrow: jest.fn().mockResolvedValue('mock-fund-tx-hash'),
+            prepareFundTransactionXdr: jest
+              .fn()
+              .mockResolvedValue('mock-unsigned-xdr'),
+          },
+        },
+        {
+          provide: StellarService,
+          useValue: {
+            submitSignedTransactionXdr: jest
+              .fn()
+              .mockResolvedValue({ hash: 'signed-submit-hash' }),
           },
         },
         {
diff --git a/apps/backend/src/modules/escrow/services/escrow.service.ts b/apps/backend/src/modules/escrow/services/escrow.service.ts
index e978d21..469b8fa 100644
--- a/apps/backend/src/modules/escrow/services/escrow.service.ts
+++ b/apps/backend/src/modules/escrow/services/escrow.service.ts
@@ -38,6 +38,7 @@ import { ExpireEscrowDto } from '../dto/expire-escrow.dto';
 import { validateTransition, isTerminalStatus } from '../escrow-state-machine';
 import { EscrowStellarIntegrationService } from './escrow-stellar-integration.service';
 import { WebhookService } from '../../../services/webhook/webhook.service';
+import { StellarService } from '../../../services/stellar.service';
 import { User, UserRole } from '../../user/entities/user.entity';
 
 @Injectable()
@@ -57,6 +58,7 @@ export class EscrowService {
     private userRepository: Repository<User>,
 
     private readonly stellarIntegrationService: EscrowStellarIntegrationService,
+    private readonly stellarService: StellarService,
     private readonly webhookService: WebhookService,
   ) {}
 
@@ -432,6 +434,42 @@ export class EscrowService {
     });
   }
 
+  /**
+   * Returns an unsigned funding transaction (XDR) for the buyer to sign in their wallet.
+   */
+  async prepareFund(
+    id: string,
+    userId: string,
+    walletAddress: string,
+  ): Promise<{ transactionXdr: string }> {
+    const escrow = await this.findOne(id);
+
+    if (escrow.creatorId !== userId) {
+      throw new ForbiddenException('Only the buyer can fund this escrow');
+    }
+
+    if (escrow.status !== EscrowStatus.PENDING) {
+      throw new BadRequestException(
+        'Escrow can only be funded while in pending status',
+      );
+    }
+
+    if (escrow.stellarTxHash) {
+      throw new BadRequestException('Escrow is already funded');
+    }
+
+    const escrowAmount = Number(escrow.amount);
+    const transactionXdr =
+      await this.stellarIntegrationService.prepareFundTransactionXdr(
+        id,
+        walletAddress,
+        String(escrowAmount),
+        escrow.asset ?? 'XLM',
+      );
+
+    return { transactionXdr };
+  }
+
   async fund(
     id: string,
     dto: FundEscrowDto,
@@ -462,13 +500,19 @@ export class EscrowService {
 
     validateTransition(escrow.status, EscrowStatus.ACTIVE);
 
-    const stellarTxHash =
-      await this.stellarIntegrationService.fundOnChainEscrow(
-        id,
-        walletAddress,
-        String(dto.amount),
-        escrow.asset ?? 'XLM',
-      );
+    const stellarTxHash = dto.signedTransactionXdr
+      ? (
+          await this.stellarService.submitSignedTransactionXdr(
+            dto.signedTransactionXdr,
+            walletAddress,
+          )
+        ).hash
+      : await this.stellarIntegrationService.fundOnChainEscrow(
+          id,
+          walletAddress,
+          String(dto.amount),
+          escrow.asset ?? 'XLM',
+        );
 
     const fundedAt = new Date();
     await this.escrowRepository.update(id, {
@@ -1093,4 +1137,4 @@ export class EscrowService {
 
     return this.findOne(escrow.id);
   }
-}
+}
\ No newline at end of file
diff --git a/apps/backend/src/services/stellar.service.ts b/apps/backend/src/services/stellar.service.ts
index ccaf234..71cc84d 100644
--- a/apps/backend/src/services/stellar.service.ts
+++ b/apps/backend/src/services/stellar.service.ts
@@ -2,6 +2,7 @@ import { Injectable, Logger, Inject } from '@nestjs/common';
 import { ConfigType } from '@nestjs/config';
 import stellarConfig from '../config/stellar.config';
 import * as StellarSdk from '@stellar/stellar-sdk';
+import { BadRequestException } from '@nestjs/common';
 import { retryWithBackoff } from '../utils/retry.util';
 import {
   StellarAccountResponse,
@@ -116,6 +117,50 @@ export class StellarService {
    * @param transaction The transaction object to submit
    * @returns Transaction result
    */
+  /**
+   * Submits a wallet-signed transaction envelope (base64 XDR).
+   * Verifies the transaction source matches the authenticated wallet.
+   */
+  async submitSignedTransactionXdr(
+    signedXdr: string,
+    expectedSourceAccount: string,
+  ): Promise<StellarSubmitTransactionResponse> {
+    try {
+      const parsed = StellarSdk.TransactionBuilder.fromXDR(
+        signedXdr,
+        this.networkPassphrase,
+      );
+
+      const FeeBump = (StellarSdk as unknown as { FeeBumpTransaction?: abstract new () => unknown })
+        .FeeBumpTransaction;
+      if (FeeBump && parsed instanceof FeeBump) {
+        throw new BadRequestException('Fee bump transactions are not supported');
+      }
+
+      const tx = parsed as StellarSdk.Transaction;
+      const source = tx.source;
+
+      if (!source || source !== expectedSourceAccount) {
+        throw new BadRequestException(
+          'Signed transaction source does not match your wallet address',
+        );
+      }
+
+      return this.submitTransaction(tx);
+    } catch (error) {
+      if (error instanceof BadRequestException) {
+        throw error;
+      }
+      this.logger.error(
+        `Failed to parse or submit signed XDR: ${this.getErrorMessage(error)}`,
+      );
+      throw this.mapStellarError(
+        error,
+        'Invalid or failed signed transaction submission',
+      );
+    }
+  }
+
   async submitTransaction(
     transaction: StellarSdk.Transaction,
   ): Promise<StellarSubmitTransactionResponse> {
diff --git a/apps/frontend/.eslintrc.cjs b/apps/frontend/.eslintrc.cjs
new file mode 100644
index 0000000..7c83a3e
--- /dev/null
+++ b/apps/frontend/.eslintrc.cjs
@@ -0,0 +1,9 @@
+module.exports = {
+  root: true,
+  extends: ["next/core-web-vitals", "next/typescript"],
+  rules: {
+    // Existing codebase uses `any` in many places; keep lint actionable.
+    "@typescript-eslint/no-explicit-any": "off",
+  },
+};
+
diff --git a/apps/frontend/component/Providers.tsx b/apps/frontend/component/Providers.tsx
index 4131a79..9baeeea 100644
--- a/apps/frontend/component/Providers.tsx
+++ b/apps/frontend/component/Providers.tsx
@@ -3,6 +3,7 @@
 import React, { useState } from 'react';
 import { QueryClient, QueryClientProvider } from '@tanstack/react-query';
 import { ToastProvider } from '@/app/contexts/ToastProvider';
+import { WalletProvider } from '@/app/contexts/WalletContext';
 
 export default function Providers({ children }: { children: React.ReactNode }) {
   const [queryClient] = useState(() => new QueryClient({
@@ -16,9 +17,9 @@ export default function Providers({ children }: { children: React.ReactNode }) {
 
   return (
     <QueryClientProvider client={queryClient}>
-      <ToastProvider>
-        {children}
-      </ToastProvider>
+      <WalletProvider>
+        <ToastProvider>{children}</ToastProvider>
+      </WalletProvider>
     </QueryClientProvider>
   );
 }
\ No newline at end of file
diff --git a/apps/frontend/component/escrow/CreateEscrowWizard.tsx b/apps/frontend/component/escrow/CreateEscrowWizard.tsx
index 73ff35e..9a6d886 100644
--- a/apps/frontend/component/escrow/CreateEscrowWizard.tsx
+++ b/apps/frontend/component/escrow/CreateEscrowWizard.tsx
@@ -1,18 +1,18 @@
 'use client';
 
-import { useState } from 'react';
-import Link from 'next/link';
+import { useEffect, useState } from 'react';
+import { useRouter } from 'next/navigation';
 import { useForm, FormProvider } from 'react-hook-form';
 import { zodResolver } from '@hookform/resolvers/zod';
-import * as z from 'zod';
 import { createEscrowSchema, CreateEscrowFormData } from '@/lib/escrow-schema';
 import BasicInfoStep from './create/BasicInfoStep';
 import PartiesStep from './create/PartiesStep';
 import TermsStep from './create/TermsStep';
 import ReviewStep from './create/ReviewStep';
 import { CheckCircle2, ChevronRight, ChevronLeft, Loader2, AlertCircle } from 'lucide-react';
-import { isConnected, signTransaction, getAddress } from '@stellar/freighter-api';
-import { Horizon, Networks, TransactionBuilder, Account, Asset, Operation } from 'stellar-sdk';
+import { getAddress, isConnected, signTransaction } from '@stellar/freighter-api';
+import { apiRequest, explorerTxUrl } from '@/lib/api-client';
+import { useWalletConnection } from '@/app/hooks/useWallet';
 
 const STEPS = [
   { id: 'basic', title: 'Basic Info', fields: ['title', 'description', 'category'] },
@@ -22,9 +22,14 @@ const STEPS = [
 ];
 
 export default function CreateEscrowWizard() {
+  const router = useRouter();
+  const { network: connectedNetwork } = useWalletConnection();
   const [currentStep, setCurrentStep] = useState(0);
   const [isSubmitting, setIsSubmitting] = useState(false);
   const [txHash, setTxHash] = useState<string | null>(null);
+  const [createdEscrowId, setCreatedEscrowId] = useState<string | null>(null);
+  const [explorerUrl, setExplorerUrl] = useState<string | null>(null);
+  const [isWalletSigning, setIsWalletSigning] = useState(false);
   const [submitError, setSubmitError] = useState<string | null>(null);
 
   const methods = useForm<CreateEscrowFormData>({
@@ -35,7 +40,23 @@ export default function CreateEscrowWizard() {
     }
   });
 
-  const { trigger, handleSubmit, getValues } = methods;
+  const { trigger, handleSubmit } = methods;
+
+  const parseErrorMessage = (error: unknown): string => {
+    if (error && typeof error === 'object' && 'message' in error) {
+      const message = (error as { message?: string }).message;
+      if (message) return message;
+    }
+    return 'Failed to create escrow. Please try again.';
+  };
+
+  useEffect(() => {
+    if (!txHash || !createdEscrowId) return;
+    const timer = window.setTimeout(() => {
+      router.push(`/escrow/${createdEscrowId}`);
+    }, 1800);
+    return () => window.clearTimeout(timer);
+  }, [txHash, createdEscrowId, router]);
 
   const nextStep = async () => {
     const fields = STEPS[currentStep].fields as any[];
@@ -54,10 +75,11 @@ export default function CreateEscrowWizard() {
 
   const onSubmit = async (data: CreateEscrowFormData) => {
     setIsSubmitting(true);
+    setIsWalletSigning(false);
     setSubmitError(null);
 
     try {
-      // 1. Check Wallet Connection
+      // 1) Wallet connection check
       const connected = await isConnected();
       if (!connected) {
         throw new Error('Freighter wallet not connected. Please install and connect Freighter.');
@@ -68,40 +90,87 @@ export default function CreateEscrowWizard() {
         throw new Error('Could not retrieve address from Freighter.');
       }
 
-      // 2. Build Transaction (Mock/Placeholder logic)
-      // In a real app, you would fetch the sequence number, build the invokeHostFunction op, etc.
-      // For this demo, we'll demonstrate the intent.
+      // 2) Resolve counterparty to an existing Vaultix user
+      const counterparty = await apiRequest<{ id: string }>(
+        `/auth/wallet/${data.counterpartyAddress}`,
+      );
 
-      // Example:
-      // const server = new Horizon.Server('https://horizon-testnet.stellar.org');
-      // const account = await server.loadAccount(publicKey);
-      // const tx = new TransactionBuilder(account, {
-      //   fee: '100',
-      //   networkPassphrase: Networks.TESTNET,
-      // })
-      // .addOperation(...) // Invoke contract logic here
-      // .setTimeout(30)
-      // .build();
+      // 3) Create escrow record
+      const createdEscrow = await apiRequest<{ id: string; amount: number }>(
+        '/escrows',
+        {
+          method: 'POST',
+          body: JSON.stringify({
+            title: data.title,
+            description: data.description,
+            amount: Number(data.amount),
+            asset: data.asset,
+            expiresAt: data.deadline.toISOString(),
+            parties: [{ userId: counterparty.id, role: 'seller' }],
+          }),
+        },
+      );
 
-      // Since we don't have the contract bindings generated, we'll simulate the delay and signing request
-      // to demonstrate the UX flow.
+      setCreatedEscrowId(createdEscrow.id);
 
-      // await signTransaction(tx.toXDR(), { network: 'TESTNET' });
+      // 4) Request unsigned funding tx XDR
+      const prepared = await apiRequest<{ transactionXdr: string }>(
+        `/escrows/${createdEscrow.id}/fund/prepare`,
+      );
 
-      await new Promise(resolve => setTimeout(resolve, 2000)); // Simulate building
+      // 5) Ask wallet to sign
+      setIsWalletSigning(true);
+      const freighterNetwork = connectedNetwork === 'public' ? 'PUBLIC' : 'TESTNET';
+      const signedXdrResult = await signTransaction(prepared.transactionXdr, {
+        networkPassphrase: freighterNetwork,
+      });
+      setIsWalletSigning(false);
 
-      // Simulate signing success
-      // const signedXdr = await signTransaction(mockXdr, ...);
+      const signedXdr =
+        typeof signedXdrResult === 'string'
+          ? signedXdrResult
+          : (signedXdrResult as { signedTxXdr?: string; signedEnvelopeXdr?: string });
+      const signedEnvelope =
+        typeof signedXdr === 'string'
+          ? signedXdr
+          : signedXdr.signedTxXdr || signedXdr.signedEnvelopeXdr;
 
-      // Simulate submission
-      // await server.submitTransaction(transaction);
+      if (!signedEnvelope) {
+        throw new Error('Wallet did not return a signed transaction.');
+      }
+
+      // 6) Submit signed tx via backend fund endpoint
+      const funded = await apiRequest<{ id: string; stellarTxHash?: string }>(
+        `/escrows/${createdEscrow.id}/fund`,
+        {
+          method: 'POST',
+          body: JSON.stringify({
+            amount: Number(data.amount),
+            signedTransactionXdr: signedEnvelope,
+          }),
+        },
+      );
 
-      setTxHash('7a8b9c...mock_hash...1d2e3f'); // Success state
+      if (!funded.stellarTxHash) {
+        throw new Error('Funding succeeded but transaction hash is missing.');
+      }
 
-    } catch (error: any) {
-      console.error(error);
-      setSubmitError(error.message || 'Failed to create escrow. Please try again.');
+      const network = connectedNetwork === 'public' ? 'public' : 'testnet';
+      setTxHash(funded.stellarTxHash);
+      setExplorerUrl(explorerTxUrl(funded.stellarTxHash, network));
+    } catch (error) {
+      const message = parseErrorMessage(error);
+      if (/reject|denied|declined|cancelled|canceled/i.test(message)) {
+        setSubmitError('Transaction signing was canceled in wallet.');
+      } else if (/insufficient/i.test(message)) {
+        setSubmitError('Insufficient balance to fund this escrow.');
+      } else if (/network/i.test(message)) {
+        setSubmitError('Network error while creating or funding escrow.');
+      } else {
+        setSubmitError(message);
+      }
     } finally {
+      setIsWalletSigning(false);
       setIsSubmitting(false);
     }
   };
@@ -120,10 +189,25 @@ export default function CreateEscrowWizard() {
           <p className="text-xs text-gray-500 uppercase">Transaction Hash</p>
           <p className="font-mono text-sm text-gray-700">{txHash}</p>
         </div>
+        {explorerUrl && (
+          <a
+            href={explorerUrl}
+            target="_blank"
+            rel="noreferrer"
+            className="inline-flex text-blue-600 hover:text-blue-700 font-medium"
+          >
+            View on Stellar Explorer
+          </a>
+        )}
         <div className="pt-4">
-          <Link href="/dashboard" className="text-blue-600 hover:text-blue-700 font-medium">
-            Return to Dashboard
-          </Link>
+          <button
+            type="button"
+            onClick={() => router.push(createdEscrowId ? `/escrow/${createdEscrowId}` : '/dashboard')}
+            className="text-blue-600 hover:text-blue-700 font-medium"
+          >
+            Go to Escrow Details
+          </button>
+          <p className="mt-2 text-xs text-gray-500">Redirecting automatically...</p>
         </div>
       </div>
     );
@@ -215,7 +299,7 @@ export default function CreateEscrowWizard() {
                   {isSubmitting ? (
                     <>
                       <Loader2 className="mr-2 h-4 w-4 animate-spin" />
-                      Creating...
+                      {isWalletSigning ? 'Awaiting wallet signature...' : 'Creating...'}
                     </>
                   ) : (
                     <>
diff --git a/apps/frontend/lib/api-client.ts b/apps/frontend/lib/api-client.ts
new file mode 100644
index 0000000..b0478d8
--- /dev/null
+++ b/apps/frontend/lib/api-client.ts
@@ -0,0 +1,55 @@
+const API_BASE_URL =
+  process.env.NEXT_PUBLIC_BACKEND_URL?.replace(/\/$/, '') ||
+  'http://localhost:3000';
+
+export class ApiError extends Error {
+  status: number;
+
+  constructor(message: string, status: number) {
+    super(message);
+    this.name = 'ApiError';
+    this.status = status;
+  }
+}
+
+function getAuthToken(): string | null {
+  if (typeof window === 'undefined') return null;
+  return (
+    window.localStorage.getItem('vaultix_access_token') ||
+    window.localStorage.getItem('accessToken')
+  );
+}
+
+export async function apiRequest<T>(
+  path: string,
+  init?: RequestInit,
+): Promise<T> {
+  const token = getAuthToken();
+  const response = await fetch(`${API_BASE_URL}${path}`, {
+    ...init,
+    headers: {
+      'Content-Type': 'application/json',
+      ...(token ? { Authorization: `Bearer ${token}` } : {}),
+      ...(init?.headers || {}),
+    },
+  });
+
+  if (!response.ok) {
+    const errorBody = (await response
+      .json()
+      .catch(() => ({ message: 'Request failed' }))) as {
+      message?: string | string[];
+    };
+    const message = Array.isArray(errorBody.message)
+      ? errorBody.message.join(', ')
+      : errorBody.message || 'Request failed';
+    throw new ApiError(message, response.status);
+  }
+
+  return (await response.json()) as T;
+}
+
+export function explorerTxUrl(txHash: string, network: 'testnet' | 'public') {
+  const networkPath = network === 'public' ? 'public' : 'testnet';
+  return `https://stellar.expert/explorer/${networkPath}/tx/${txHash}`;
+}
diff --git a/apps/frontend/package-lock.json b/apps/frontend/package-lock.json
index e7d503e..4876258 100644
--- a/apps/frontend/package-lock.json
+++ b/apps/frontend/package-lock.json
@@ -30,6 +30,7 @@
         "@types/node": "^20",
         "@types/react": "^19",
         "@types/react-dom": "^19",
+        "cross-env": "^7.0.3",
         "eslint": "^8.57.1",
         "eslint-config-next": "^15.5.9",
         "shadcn": "^3.8.5",
@@ -3970,7 +3971,6 @@
       "integrity": "sha512-Lpo8kgb/igvMIPeNV2rsYKTgaORYdO1XGVZ4Qz3akwOj0ySGYMPlQWa8BaLn0G63D1aSaAQ5ldR06wCpChQCjA==",
       "devOptional": true,
       "license": "MIT",
-      "peer": true,
       "dependencies": {
         "csstype": "^3.2.2"
       }
@@ -4044,7 +4044,6 @@
       "integrity": "sha512-nm3cvFN9SqZGXjmw5bZ6cGmvJSyJPn0wU9gHAZZHDnZl2wF9PhHv78Xf06E0MaNk4zLVHL8hb2/c32XvyJOLQg==",
       "dev": true,
       "license": "MIT",
-      "peer": true,
       "dependencies": {
         "@typescript-eslint/scope-manager": "8.53.1",
         "@typescript-eslint/types": "8.53.1",
@@ -4592,7 +4591,6 @@
       "integrity": "sha512-NZyJarBfL7nWwIq+FDL6Zp/yHEhePMNnnJ0y3qfieCrmNvYct8uvtiV41UvlSe6apAfk0fY1FbWx+NwfmpvtTg==",
       "dev": true,
       "license": "MIT",
-      "peer": true,
       "bin": {
         "acorn": "bin/acorn"
       },
@@ -5588,6 +5586,24 @@
         }
       }
     },
+    "node_modules/cross-env": {
+      "version": "7.0.3",
+      "resolved": "https://registry.npmmirror.com/cross-env/-/cross-env-7.0.3.tgz",
+      "integrity": "sha512-+/HKd6EgcQCJGh2PSjZuUitQBQynKor4wrFbRg4DtAgS1aWO+gU52xpH7M9ScGgXSYmAVS9bIJ8EzuaGw0oNAw==",
+      "dev": true,
+      "dependencies": {
+        "cross-spawn": "^7.0.1"
+      },
+      "bin": {
+        "cross-env": "src/bin/cross-env.js",
+        "cross-env-shell": "src/bin/cross-env-shell.js"
+      },
+      "engines": {
+        "node": ">=10.14",
+        "npm": ">=6",
+        "yarn": ">=1"
+      }
+    },
     "node_modules/cross-spawn": {
       "version": "7.0.6",
       "resolved": "https://registry.npmjs.org/cross-spawn/-/cross-spawn-7.0.6.tgz",
@@ -6213,7 +6229,6 @@
       "deprecated": "This version is no longer supported. Please see https://eslint.org/version-support for other options.",
       "dev": true,
       "license": "MIT",
-      "peer": true,
       "dependencies": {
         "@eslint-community/eslint-utils": "^4.2.0",
         "@eslint-community/regexpp": "^4.6.1",
@@ -6383,7 +6398,6 @@
       "integrity": "sha512-whOE1HFo/qJDyX4SnXzP4N6zOWn79WhnCUY/iDR0mPfQZO8wcYE4JClzI2oZrhBnnMUCBCHZhO6VQyoBU95mZA==",
       "dev": true,
       "license": "MIT",
-      "peer": true,
       "dependencies": {
         "@rtsao/scc": "^1.1.0",
         "array-includes": "^3.1.9",
@@ -10140,7 +10154,6 @@
       "resolved": "https://registry.npmjs.org/react/-/react-19.1.0.tgz",
       "integrity": "sha512-FS+XFBNvn3GTAWq26joslQgWNoFu08F4kl0J4CgdNKADkdSGXQyTCnKteIAJy96Br6YbpEU1LSzV5dYtjMkMDg==",
       "license": "MIT",
-      "peer": true,
       "engines": {
         "node": ">=0.10.0"
       }
@@ -10150,7 +10163,6 @@
       "resolved": "https://registry.npmjs.org/react-dom/-/react-dom-19.1.0.tgz",
       "integrity": "sha512-Xs1hdnE+DyKgeHJeJznQmYMIBG3TKIHJJT95Q58nHLSrElKlGQqDTR2HQ9fx5CN/Gk6Vh/kupBTDLU11/nDk/g==",
       "license": "MIT",
-      "peer": true,
       "dependencies": {
         "scheduler": "^0.26.0"
       },
@@ -10163,7 +10175,6 @@
       "resolved": "https://registry.npmjs.org/react-hook-form/-/react-hook-form-7.71.1.tgz",
       "integrity": "sha512-9SUJKCGKo8HUSsCO+y0CtqkqI5nNuaDqTxyqPsZPqIwudpj4rCrAz/jZV+jn57bx5gtZKOh3neQu94DXMc+w5w==",
       "license": "MIT",
-      "peer": true,
       "engines": {
         "node": ">=18.0.0"
       },
@@ -11866,7 +11877,6 @@
       "integrity": "sha512-5gTmgEY/sqK6gFXLIsQNH19lWb4ebPDLA4SdLP7dsWkIXHWlG66oPuVvXSGFPppYZz8ZDZq0dYYrbHfBCVUb1Q==",
       "dev": true,
       "license": "MIT",
-      "peer": true,
       "engines": {
         "node": ">=12"
       },
@@ -12173,7 +12183,6 @@
       "integrity": "sha512-jl1vZzPDinLr9eUt3J/t7V6FgNEw9QjvBPdysz9KfQDD41fQrC2Y4vKQdiaUpFT4bXlb1RHhLpp8wtm6M5TgSw==",
       "dev": true,
       "license": "Apache-2.0",
-      "peer": true,
       "bin": {
         "tsc": "bin/tsc",
         "tsserver": "bin/tsserver"
diff --git a/apps/frontend/package.json b/apps/frontend/package.json
index 6788053..98ab812 100644
--- a/apps/frontend/package.json
+++ b/apps/frontend/package.json
@@ -6,7 +6,7 @@
     "dev": "next dev --turbopack",
     "build": "next build --turbopack",
     "start": "next start",
-    "lint": "eslint ."
+    "lint": "cross-env ESLINT_USE_FLAT_CONFIG=false eslint ."
   },
   "dependencies": {
     "@hookform/resolvers": "^5.2.2",
@@ -31,6 +31,7 @@
     "@types/node": "^20",
     "@types/react": "^19",
     "@types/react-dom": "^19",
+    "cross-env": "^7.0.3",
     "eslint": "^8.57.1",
     "eslint-config-next": "^15.5.9",
     "shadcn": "^3.8.5",
diff --git a/eslint.config.js b/eslint.config.js
index 75b29b3..4ba4ced 100644
--- a/eslint.config.js
+++ b/eslint.config.js
@@ -1,6 +1,4 @@
-import { Linter } from "eslint";
-
-/** @type {Linter.FlatConfig[]} */
+/** @type {import("eslint").Linter.FlatConfig[]} */
 const config = [
   {
     languageOptions: {