Bank Leumi launches Bitcoin trading: Israel enters a new era of digital finance
Israeli banking giant Leumi (Bank Leumi) is making a historic move by announcing a strategic partnership with Galaxy Digital. According to my analysis, this is the first financial institution in the country to offer its clients direct access to trading digital assets, including Bitcoin, Ethereum, and Solana. The integration will cover both the main bank and its mobile division PEPPER, significantly expanding the potential audience.
The service will be launched through a secure section in the Leumi Trade app, with its technical foundation provided by the institutional platform GalaxyOne and the custody solution Custody Infrastructure (formerly known as GK8). In my assessment, the choice of such a technology stack indicates a serious approach to security and institutional-grade service quality.
A Regulated Bridge to the World of Cryptocurrencies
Bank executive Maya Ravia emphasizes that the initiative is a key element of Leumi's innovation strategy. She rightly notes that cryptocurrencies are becoming an integral part of the global financial system, and the bank's task is to offer clients simple and secure access to them within a regulated model. This is especially important in a context where institutional players are seeking reliable bridges between traditional finance and digital assets.
It is worth noting that this is not the bank's first attempt to enter the crypto segment. As early as March 2022, the Pepper Invest platform announced a partnership with stablecoin issuer Paxos, planning to launch operations with Bitcoin and Ethereum with a minimum threshold of 50 shekels (~$15.5). However, that project then faced regulatory barriers and was never implemented. The current initiative appears more mature and well-developed.
Market Context: Israel Gains Momentum
Analyzing Chainalysis data, I see steady growth in crypto activity in Israel. In the year leading up to June 2025, approximately $22 billion flowed into the country through on-chain channels. The MENA region as a whole showed 33% year-over-year growth, lower than APAC (69%) and Latin America (63%). However, the key indicator is retail activity in Israel after October 2023, where actual volumes exceeded forecasts by an average of 60.4%. This points to high domestic demand that the bank will now be able to serve legally and securely.
An additional catalyst was the decision by the Israel Capital Markets Authority, which in April 2026 issued for the first time a license to issue a shekel-pegged stablecoin, with the exchange Bits of Gold acting as the issuer. This creates a favorable regulatory environment for the further development of digital finance in the country.
My expert commentary: The launch of cryptocurrency trading at Bank Leumi is not just an expansion of the product line, but a signal of a paradigm shift. When the country's largest bank takes on the role of a gateway to the world of digital assets, it will inevitably boost confidence among conservative investors and accelerate institutional adoption. In the coming years, we will likely see a wave of similar initiatives from other financial institutions in the region, which will contribute to the further integration of the crypto market into the traditional financial ecosystem.