diff --git a/backend/Cargo.lock b/backend/Cargo.lock
index cb87b3c89..869b3725c 100644
--- a/backend/Cargo.lock
+++ b/backend/Cargo.lock
@@ -58,9 +58,9 @@ checksum = "7f202df86484c868dbad7eaa557ef785d5c66295e41b460ef922eca0723b842c"
 
 [[package]]
 name = "arc-swap"
-version = "1.9.1"
+version = "1.9.2"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "6a3a1fd6f75306b68087b831f025c712524bcb19aad54e557b1129cfa0a2b207"
+checksum = "c049c0be4daef0b145cb3555416b3b8ef5b7888a38aea1a3a155801fe7b0810b"
 dependencies = [
  "rustversion",
 ]
@@ -171,6 +171,15 @@ dependencies = [
  "syn 2.0.118",
 ]
 
+[[package]]
+name = "backon"
+version = "1.6.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "cffb0e931875b666fc4fcb20fee52e9bbd1ef836fd9e9e04ec21555f9f85f7ef"
+dependencies = [
+ "fastrand",
+]
+
 [[package]]
 name = "base32"
 version = "0.4.0"
@@ -595,6 +604,12 @@ dependencies = [
  "spin",
 ]
 
+[[package]]
+name = "fnv"
+version = "1.0.7"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "3f9eec918d3f24069decb9af1554cad7c880e2da24a9afd88aca000531ab82c1"
+
 [[package]]
 name = "form_urlencoded"
 version = "1.2.2"
@@ -610,6 +625,21 @@ version = "2.0.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "e6d5a32815ae3f33302d95fdcb2ce17862f8c65363dcfd29360480ba1001fc9c"
 
+[[package]]
+name = "futures"
+version = "0.3.32"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "8b147ee9d1f6d097cef9ce628cd2ee62288d963e16fb287bd9286455b241382d"
+dependencies = [
+ "futures-channel",
+ "futures-core",
+ "futures-executor",
+ "futures-io",
+ "futures-sink",
+ "futures-task",
+ "futures-util",
+]
+
 [[package]]
 name = "futures-channel"
 version = "0.3.32"
@@ -654,6 +684,17 @@ version = "0.3.32"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "cecba35d7ad927e23624b22ad55235f2239cfa44fd10428eecbeba6d6a717718"
 
+[[package]]
+name = "futures-macro"
+version = "0.3.32"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "e835b70203e41293343137df5c0664546da5745f82ec9b84d40be8336958447b"
+dependencies = [
+ "proc-macro2",
+ "quote",
+ "syn 2.0.118",
+]
+
 [[package]]
 name = "futures-sink"
 version = "0.3.32"
@@ -672,8 +713,10 @@ version = "0.3.32"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "389ca41296e6190b48053de0321d02a77f32f8a5d2461dd38762c0593805c6d6"
 dependencies = [
+ "futures-channel",
  "futures-core",
  "futures-io",
+ "futures-macro",
  "futures-sink",
  "futures-task",
  "memchr",
@@ -1033,6 +1076,8 @@ dependencies = [
  "hex",
  "hmac",
  "jsonwebtoken",
+ "once_cell",
+ "prometheus",
  "rand 0.8.6",
  "redis",
  "rust_decimal",
@@ -1136,6 +1181,12 @@ dependencies = [
  "vcpkg",
 ]
 
+[[package]]
+name = "linux-raw-sys"
+version = "0.4.15"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "d26c52dbd32dccf2d10cac7725f8eae5296885fb5703b261f7d0a0739ec807ab"
+
 [[package]]
 name = "linux-raw-sys"
 version = "0.12.1"
@@ -1456,6 +1507,52 @@ dependencies = [
  "unicode-ident",
 ]
 
+[[package]]
+name = "procfs"
+version = "0.16.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "731e0d9356b0c25f16f33b5be79b1c57b562f141ebfcdb0ad8ac2c13a24293b4"
+dependencies = [
+ "bitflags",
+ "hex",
+ "lazy_static",
+ "procfs-core",
+ "rustix 0.38.44",
+]
+
+[[package]]
+name = "procfs-core"
+version = "0.16.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "2d3554923a69f4ce04c4a754260c338f505ce22642d3830e049a399fc2059a29"
+dependencies = [
+ "bitflags",
+ "hex",
+]
+
+[[package]]
+name = "prometheus"
+version = "0.13.4"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "3d33c28a30771f7f96db69893f78b857f7450d7e0237e9c8fc6427a81bae7ed1"
+dependencies = [
+ "cfg-if",
+ "fnv",
+ "lazy_static",
+ "libc",
+ "memchr",
+ "parking_lot",
+ "procfs",
+ "protobuf",
+ "thiserror 1.0.69",
+]
+
+[[package]]
+name = "protobuf"
+version = "2.28.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "106dd99e98437432fed6519dedecfade6a06a73bb7b2a1e019fdd2bee5778d94"
+
 [[package]]
 name = "ptr_meta"
 version = "0.1.4"
@@ -1570,8 +1667,10 @@ checksum = "09d8f99a4090c89cc489a94833c901ead69bfbf3877b4867d5482e321ee875bc"
 dependencies = [
  "arc-swap",
  "async-trait",
+ "backon",
  "bytes",
  "combine",
+ "futures",
  "futures-util",
  "itertools",
  "itoa",
@@ -1719,6 +1818,19 @@ dependencies = [
  "semver",
 ]
 
+[[package]]
+name = "rustix"
+version = "0.38.44"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "fdb5bc1ae2baa591800df16c9ca78619bf65c0488b41b96ccec5d11220d8c154"
+dependencies = [
+ "bitflags",
+ "errno",
+ "libc",
+ "linux-raw-sys 0.4.15",
+ "windows-sys 0.52.0",
+]
+
 [[package]]
 name = "rustix"
 version = "1.1.4"
@@ -1728,7 +1840,7 @@ dependencies = [
  "bitflags",
  "errno",
  "libc",
- "linux-raw-sys",
+ "linux-raw-sys 0.12.1",
  "windows-sys 0.61.2",
 ]
 
@@ -2306,7 +2418,7 @@ dependencies = [
  "fastrand",
  "getrandom 0.4.3",
  "once_cell",
- "rustix",
+ "rustix 1.1.4",
  "windows-sys 0.61.2",
 ]
 
diff --git a/backend/Cargo.toml b/backend/Cargo.toml
index 666849c6e..835f6ab6f 100644
--- a/backend/Cargo.toml
+++ b/backend/Cargo.toml
@@ -5,6 +5,7 @@ edition = "2021"
 
 [dependencies]
 tokio = { version = "1.0", features = ["full"] }
+redis = { version = "0.27", features = ["tokio-comp", "connection-manager"] }
 axum = { version = "0.8", features = ["json", "multipart", "macros", "ws"] }
 tower = { version = "0.5", features = ["util"] }
 tower-http = { version = "0.6", features = ["cors", "trace", "request-id", "util"] }
@@ -28,4 +29,5 @@ jsonwebtoken = "9.0"
 base64 = "0.21"
 stellar-strkey = "0.0.8"
 ed25519-dalek = { version = "2.1", features = ["pkcs8", "rand_core"] }
-redis = { version = "0.27", features = ["tokio-comp"] }
+prometheus = { version = "0.13", features = ["process"] }
+once_cell = "1.19"
diff --git a/backend/src/api.rs b/backend/src/api.rs
index cfd9a2cae..33a7f6288 100644
--- a/backend/src/api.rs
+++ b/backend/src/api.rs
@@ -18,6 +18,7 @@ use uuid::Uuid;
 use crate::auth::signature_auth_middleware;
 use crate::cache::PlanCache;
 use crate::kyc_webhook::kyc_webhook_handler;
+use crate::metrics::{latency_middleware, metrics_handler};
 use crate::stellar_anchor::AnchorRegistry;
 use crate::ws::{ws_handler, KycUpdateEvent};
 use crate::yield_calculator;
@@ -136,6 +137,8 @@ pub fn create_router(state: Arc<AppState>) -> Router {
     Router::new()
         .merge(user_routes)
         .merge(public_routes)
+        .route("/metrics", get(metrics_handler))
+        .layer(from_fn(latency_middleware))
         .layer(cors)
         .with_state(state)
 }
diff --git a/backend/src/lib.rs b/backend/src/lib.rs
index c75cf7567..cf3cc970c 100644
--- a/backend/src/lib.rs
+++ b/backend/src/lib.rs
@@ -5,6 +5,7 @@ pub mod config;
 pub mod db;
 pub mod inactivity_watchdog;
 pub mod kyc_webhook;
+pub mod metrics;
 pub mod stellar_anchor;
 pub mod telemetry;
 pub mod ws;
diff --git a/backend/src/main.rs b/backend/src/main.rs
index 074415c14..1ffb6ec7e 100644
--- a/backend/src/main.rs
+++ b/backend/src/main.rs
@@ -1,5 +1,5 @@
 use inheritx_backend::{
-    create_router, telemetry, AppState, Config, DbManager, InactivityWatchdogConfig,
+    create_router, metrics, telemetry, AppState, Config, DbManager, InactivityWatchdogConfig,
     InactivityWatchdogService,
 };
 use std::net::SocketAddr;
@@ -11,6 +11,9 @@ async fn main() -> Result<(), Box<dyn std::error::Error>> {
     // Initialize tracing logging
     telemetry::init_tracing()?;
 
+    // Initialize Prometheus metrics
+    metrics::init();
+
     //loading the .env
     dotenvy::dotenv().ok();
 
@@ -65,6 +68,18 @@ async fn main() -> Result<(), Box<dyn std::error::Error>> {
     ));
     inactivity_watchdog.start();
 
+    // Periodically refresh DB pool metrics
+    {
+        let pool = db_pool.clone();
+        tokio::spawn(async move {
+            let mut interval = tokio::time::interval(std::time::Duration::from_secs(15));
+            loop {
+                interval.tick().await;
+                metrics::update_db_pool_metrics(&pool);
+            }
+        });
+    }
+
     // Create Axum application
     let app = create_router(state);
 
diff --git a/backend/src/metrics.rs b/backend/src/metrics.rs
new file mode 100644
index 000000000..4db1555c2
--- /dev/null
+++ b/backend/src/metrics.rs
@@ -0,0 +1,104 @@
+use axum::{extract::Request, http::StatusCode, middleware::Next, response::IntoResponse};
+use once_cell::sync::Lazy;
+use prometheus::{
+    histogram_opts, opts, register_gauge, register_histogram_vec, Encoder, Gauge, HistogramVec,
+    TextEncoder,
+};
+use std::time::Instant;
+
+/// Tracks number of in-flight HTTP connections.
+pub static ACTIVE_CONNECTIONS: Lazy<Gauge> = Lazy::new(|| {
+    register_gauge!(opts!(
+        "inheritx_active_connections",
+        "Number of currently active HTTP connections"
+    ))
+    .expect("failed to register active_connections gauge")
+});
+
+/// Per-route request latency histogram (seconds).
+/// Labels: method, path, status
+pub static REQUEST_LATENCY: Lazy<HistogramVec> = Lazy::new(|| {
+    register_histogram_vec!(
+        histogram_opts!(
+            "inheritx_http_request_duration_seconds",
+            "HTTP request latency in seconds",
+            // Buckets tuned for low-latency API; p95/p99 computed by Prometheus from these.
+            vec![0.005, 0.01, 0.025, 0.05, 0.1, 0.25, 0.5, 1.0, 2.5, 5.0]
+        ),
+        &["method", "path", "status"]
+    )
+    .expect("failed to register request_latency histogram")
+});
+
+/// DB pool size (total connections in the pool).
+pub static DB_POOL_SIZE: Lazy<Gauge> = Lazy::new(|| {
+    register_gauge!(opts!(
+        "inheritx_db_pool_size",
+        "Total connections in the DB pool"
+    ))
+    .expect("failed to register db_pool_size gauge")
+});
+
+/// DB pool idle connections.
+pub static DB_POOL_IDLE: Lazy<Gauge> = Lazy::new(|| {
+    register_gauge!(opts!(
+        "inheritx_db_pool_idle",
+        "Idle connections in the DB pool"
+    ))
+    .expect("failed to register db_pool_idle gauge")
+});
+
+/// Call once at startup to force lazy initialization of all metrics.
+pub fn init() {
+    Lazy::force(&ACTIVE_CONNECTIONS);
+    Lazy::force(&REQUEST_LATENCY);
+    Lazy::force(&DB_POOL_SIZE);
+    Lazy::force(&DB_POOL_IDLE);
+}
+
+/// Updates DB pool gauges from the current sqlx pool state.
+pub fn update_db_pool_metrics(pool: &sqlx::PgPool) {
+    DB_POOL_SIZE.set(pool.size() as f64);
+    DB_POOL_IDLE.set(pool.num_idle() as f64);
+}
+
+/// GET /metrics — Prometheus text exposition.
+pub async fn metrics_handler() -> impl IntoResponse {
+    let encoder = TextEncoder::new();
+    let metric_families = prometheus::gather();
+    let mut buf = Vec::new();
+    if encoder.encode(&metric_families, &mut buf).is_err() {
+        return (StatusCode::INTERNAL_SERVER_ERROR, "encoding error").into_response();
+    }
+    (
+        StatusCode::OK,
+        [(axum::http::header::CONTENT_TYPE, encoder.format_type())],
+        buf,
+    )
+        .into_response()
+}
+
+/// Axum middleware: tracks active connections and records per-route latency.
+pub async fn latency_middleware(req: Request, next: Next) -> impl IntoResponse {
+    ACTIVE_CONNECTIONS.inc();
+
+    let method = req.method().to_string();
+    // Use the matched path pattern (e.g. "/api/plans") to avoid high cardinality.
+    let path = req
+        .extensions()
+        .get::<axum::extract::MatchedPath>()
+        .map(|p| p.as_str().to_owned())
+        .unwrap_or_else(|| req.uri().path().to_owned());
+
+    let start = Instant::now();
+    let response = next.run(req).await;
+    let elapsed = start.elapsed().as_secs_f64();
+
+    let status = response.status().as_u16().to_string();
+    REQUEST_LATENCY
+        .with_label_values(&[&method, &path, &status])
+        .observe(elapsed);
+
+    ACTIVE_CONNECTIONS.dec();
+    response
+}