Photonic Integrated Circuits (PICs) are one of the key technologies enabling extremely high-throughput optical communications systems deployed in terrestrial fibre networks. Their inherent benefit is the co-integration and miniaturization of multiple high-speed optical devices such as lasers, photodiodes and modulators on a single chip. Compact photonic solutions have the potential to benefit satellite systems not only in terms of their demonstrated performance, but also through improvements in Size, Weight and Power (SWaP) of a satellite payload.In our approach we propose leveraging mature PIC-based solutions employed in high-speed coherent transceivers delivering 100 Gbps per wavelength using PDM-QPSK modulation format. However, the optical chip design is adapted to expand its functionality with a capability to correlate time-transfer sequences used for satellite ranging applications.The proposed solution is demonstrated with a simplified Indium Phosphide transceiver chip operating in the optical C-band. The required functionality of the current prototype is based on a combination of standard and customized integrated devices. The adaptation of the required photonic components accounts for existing reports on the space environment impact on their performances. The implemented functionalities are tested to prove the concept feasibility and gain better understanding of their performance.