diff --git a/src/api/common/schemas/transactions-options.json b/src/api/common/schemas/transactions-options.json
index 922c718c..715b7448 100644
--- a/src/api/common/schemas/transactions-options.json
+++ b/src/api/common/schemas/transactions-options.json
@@ -15,6 +15,7 @@
     "excludeFailures": {"type": "boolean"},
     "outgoing": {"type": "boolean"},
     "incoming": {"type": "boolean"},
+    "counterparty": {"$ref": "address"},
     "types": {
       "type": "array",
       "items": {
diff --git a/src/api/ledger/transactions.js b/src/api/ledger/transactions.js
index 76c0b5e5..59cb477a 100644
--- a/src/api/ledger/transactions.js
+++ b/src/api/ledger/transactions.js
@@ -27,6 +27,10 @@ function transactionFilter(address, filters, tx) {
   if (filters.incoming && tx.address === address) {
     return false;
   }
+  if (filters.counterparty && tx.address !== filters.counterparty
+      && tx.Destination !== filters.counterparty) {
+    return false;
+  }
   return true;
 }