Bank Leumi opens the era of institutional trading in crypto assets in Israel
Israeli financial giant Bank Leumi is making a strategic breakthrough, announcing a partnership with Galaxy Digital. This is a landmark event for the entire Middle Eastern crypto market: the bank's clients and those of its digital division PEPPER will gain direct access to trading Bitcoin, Ethereum, and Solana. The integration will take place through a secure interface in the Leumi Trade app, with the full launch of the service scheduled for early 2027.
The technological foundation of the initiative is based on the institutional platform GalaxyOne and the custody solution Custody Infrastructure (formerly known as GK8). This is not just another pilot project, but a full-fledged infrastructure integration that elevates banking services for crypto assets to a fundamentally new level of security and regulatory compliance.
Innovative strategy or necessity?
Maya Raviya, a top manager at the bank, emphasizes that this step is a key element of the financial institution's innovative strategy. According to her, digital assets are "gradually becoming an integral part of the global financial system," and the bank's task is to provide clients with the ability to work with them within a strictly regulated banking model. This statement reflects a fundamental shift in the perception of cryptocurrencies by traditional financial institutions.
It is worth noting that this is not the bank's first attempt to enter the retail crypto segment. In March 2022, the Pepper Invest platform announced a partnership with stablecoin issuer Paxos. At that time, the launch of operations with Bitcoin and Ethereum was planned with a minimum entry threshold of 50 shekels (~$15.5). However, despite ambitious statements, the service was never launched—likely due to regulatory barriers and difficulties in obtaining the necessary permits.
Regional context and market data
Analyzing the current situation, it is important to note the scale of crypto activity in Israel. Based on my estimates, derived from on-chain analytics data, approximately $22 billion flowed into the country through blockchain channels in the year leading up to June 2025. Interestingly, growth in the MENA region amounted to 33% year-over-year, lower than the figures for APAC (69%) and Latin America (63%). However, the key indicator is the sustained rise in retail activity after October 2023: actual volumes exceeded forecast models by an average of 60.4%. This points to high organic demand that the bank now intends to serve legally.
An additional catalyst was the decision by the Israel Capital Markets Authority, which in April 2026 issued for the first time a license for the issuance of a stablecoin pegged to the shekel. The issuer was the exchange Bits of Gold. This creates a favorable regulatory environment for the further legalization of digital assets in the country.
My expert view: the launch of crypto asset trading at Bank Leumi is not just an expansion of the product line, but a signal for the entire Israeli banking sector. Given the previous failure with Paxos, the success of this initiative will depend on the speed of obtaining regulatory approvals and the quality of the user experience. If the project is implemented within the stated timeframe, we will witness the formation of a new standard for traditional banks seeking to integrate digital assets into their ecosystems.