Restoration of motor function in cases of peripheral nerve injury is a challenging problem. Although peripheral nerves do regenerate, the time required for peripheral nerves to regenerate often causes atrophy to occur in the muscles before they can be re-innervated. This paper presents a solution through proximal recording of nerve signals and distal muscle stimulation. A fully implantable hardware architecture is described that can be operated by means of inductive power and MICS band data transmission schemes. Preliminary experiments and validation studies are reported with non-human primates based on recordings in the median nerve, stimulation of hand muscles, and task decoding and classification. This approach shows promise in creating a neural prosthesis capable of restoring hand movements in patients with upper limb peripheral nerve injuries.