diff --git a/packages/keyring-api/CHANGELOG.md b/packages/keyring-api/CHANGELOG.md
index 7679909fb..2a978c97a 100644
--- a/packages/keyring-api/CHANGELOG.md
+++ b/packages/keyring-api/CHANGELOG.md
@@ -7,6 +7,10 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 ## [Unreleased]
 
+### Added
+
+- Add `TransactionType.TokenApprove` for token approval transactions ([#537](https://github.com/MetaMask/accounts/pull/537))
+
 ## [23.0.1]
 
 ### Fixed
diff --git a/packages/keyring-api/src/api/transaction.ts b/packages/keyring-api/src/api/transaction.ts
index de87bc640..012ad521c 100644
--- a/packages/keyring-api/src/api/transaction.ts
+++ b/packages/keyring-api/src/api/transaction.ts
@@ -165,6 +165,11 @@ export enum TransactionType {
    */
   StakeWithdraw = 'stake:withdraw',
 
+  /**
+   * Represents a token approval transaction.
+   */
+  TokenApprove = 'token:approve',
+
   /**
    * The transaction type is unknown. It's not possible to determine the
    * transaction type based on the information available.
@@ -355,6 +360,7 @@ export const TransactionStruct = object({
     `${TransactionType.BridgeReceive}`,
     `${TransactionType.StakeDeposit}`,
     `${TransactionType.StakeWithdraw}`,
+    `${TransactionType.TokenApprove}`,
     `${TransactionType.Unknown}`,
   ]),