diff --git a/packages/anchor-service/src/index.ts b/packages/anchor-service/src/index.ts
index e69de29..df78ae9 100644
--- a/packages/anchor-service/src/index.ts
+++ b/packages/anchor-service/src/index.ts
@@ -0,0 +1,174 @@
+/**
+ * KYC Status interface for SEP-12 customer information responses
+ */
+export interface KycStatus {
+  /** The account ID (Stellar public key) */
+  accountId: string;
+  /** KYC verification status */
+  status: 'pending' | 'approved' | 'rejected';
+  /** Optional status message providing additional context */
+  message?: string;
+  /** Timestamp when the KYC status was last updated */
+  lastUpdated?: Date;
+  /** Optional additional KYC data from the anchor */
+  extra?: Record<string, unknown>;
+}
+
+/**
+ * SEP-12 Customer Information Request Response
+ */
+interface Sep12CustomerResponse {
+  id: string;
+  status: string;
+  message?: string;
+  provided_fields?: Record<string, unknown>;
+  requested_info?: Record<string, unknown>;
+}
+
+/**
+ * Configuration options for the anchor service
+ */
+interface AnchorServiceConfig {
+  /** SEP-12 KYC endpoint URL */
+  kycEndpoint: string;
+  /** Optional authentication token for the anchor */
+  authToken?: string;
+  /** Request timeout in milliseconds (default: 10000) */
+  timeout?: number;
+}
+
+/**
+ * Anchor Service for handling Stellar anchor interactions
+ * Implements SEP-12 (Customer Information) for KYC verification
+ */
+export class AnchorService {
+  private config: AnchorServiceConfig;
+
+  constructor(config: AnchorServiceConfig) {
+    this.config = {
+      timeout: 10000,
+      ...config,
+    };
+  }
+
+  /**
+   * Check KYC status for a given account via SEP-12
+   * @param accountId - The Stellar account ID (public key) to check
+   * @returns Promise<KycStatus> - The KYC status of the account
+   */
+  async checkKycStatus(accountId: string): Promise<KycStatus> {
+    try {
+      // Validate accountId format (basic validation for Stellar public key)
+      if (!accountId || typeof accountId !== 'string') {
+        return {
+          accountId,
+          status: 'rejected',
+          message: 'Invalid account ID format',
+          lastUpdated: new Date(),
+        };
+      }
+
+      // Construct the SEP-12 customer info request URL
+      const url = new URL('/customer', this.config.kycEndpoint);
+      url.searchParams.set('account', accountId);
+
+      // Configure request headers
+      const headers: Record<string, string> = {
+        'Content-Type': 'application/json',
+      };
+
+      if (this.config.authToken) {
+        headers['Authorization'] = `Bearer ${this.config.authToken}`;
+      }
+
+      // Make the SEP-12 customer information request
+      const controller = new AbortController();
+      const timeoutId = setTimeout(() => controller.abort(), this.config.timeout);
+
+      const response = await fetch(url.toString(), {
+        method: 'GET',
+        headers,
+        signal: controller.signal,
+      });
+
+      clearTimeout(timeoutId);
+
+      // Handle missing KYC data gracefully
+      if (response.status === 404) {
+        return {
+          accountId,
+          status: 'pending',
+          message: 'No KYC data found for this account',
+          lastUpdated: new Date(),
+        };
+      }
+
+      if (!response.ok) {
+        throw new Error(
+          `SEP-12 request failed with status ${response.status}: ${response.statusText}`
+        );
+      }
+
+      const customerData: Sep12CustomerResponse = await response.json();
+
+      // Map SEP-12 status to our KycStatus
+      const kycStatus = this.mapSep12Status(customerData.status);
+
+      return {
+        accountId,
+        status: kycStatus,
+        message: customerData.message,
+        lastUpdated: new Date(),
+        extra: {
+          customerId: customerData.id,
+          providedFields: customerData.provided_fields,
+          requestedInfo: customerData.requested_info,
+        },
+      };
+    } catch (error) {
+      // Handle network errors and missing KYC data gracefully
+      if (error instanceof Error && error.name === 'AbortError') {
+        return {
+          accountId,
+          status: 'pending',
+          message: 'KYC check timed out',
+          lastUpdated: new Date(),
+        };
+      }
+
+      // Log the error for debugging but return a safe default
+      console.error(`KYC check failed for account ${accountId}:`, error);
+
+      return {
+        accountId,
+        status: 'pending',
+        message: `KYC check failed: ${error instanceof Error ? error.message : 'Unknown error'}`,
+        lastUpdated: new Date(),
+      };
+    }
+  }
+
+  /**
+   * Map SEP-12 customer status to our KycStatus enum
+   * SEP-12 defines various statuses that we normalize to: pending, approved, rejected
+   */
+  private mapSep12Status(sep12Status: string): 'pending' | 'approved' | 'rejected' {
+    const normalizedStatus = sep12Status.toLowerCase();
+
+    // SEP-12 status mappings
+    if (normalizedStatus === 'approved' || normalizedStatus === 'accepted') {
+      return 'approved';
+    }
+
+    if (
+      normalizedStatus === 'rejected' ||
+      normalizedStatus === 'denied' ||
+      normalizedStatus === 'blocked'
+    ) {
+      return 'rejected';
+    }
+
+    // All other statuses (pending, pending_customer, pending_server, etc.) map to pending
+    return 'pending';
+  }
+}