Bank Leumi is preparing a breakthrough: Israel's first bank launches bitcoin trading
Israeli banking giant Bank Leumi has taken a decisive step toward institutional integration of digital assets. In mid-August, the financial corporation officially announced a strategic partnership with Galaxy Digital, one of the leading players in the crypto investment market. Under this alliance, the bank's clients and those of its mobile division PEPPER will gain direct access to trading in bitcoin, Ethereum, and Solana.
Trading functionality will be integrated into the secure section of the Leumi Trade app. According to official data, the service launch is scheduled for early 2027. The technological foundation will be the institutional platform GalaxyOne, as well as the custody solution Custody Infrastructure, formerly known as GK8. This will ensure a high level of security and compliance with strict banking standards.
A strategic view of the future
Maya Raviya, a top executive at the bank, emphasized that this initiative is a key element of the credit institution's innovation strategy. According to her, clients will receive "simple, secure, and regulated access" to digital assets on one of the world's best technological platforms. She also noted that cryptocurrencies are "gradually becoming an integral part of the global financial system," and the bank's task is to provide clients with the opportunity to work with them within the familiar regulated banking model.
This is not Bank Leumi's first attempt to explore the retail crypto market. As early as March 2022, the Pepper Invest platform announced a partnership with stablecoin issuer Paxos. At that time, plans were made to launch operations with bitcoin and Ethereum with a minimum entry threshold of 50 shekels (~$15.5). However, the launch never materialized—the parties awaited regulatory approvals, but it never reached an actual start.
Regional context and growing demand
Interest in cryptocurrencies in Israel is evident. According to my data, based on Chainalysis analytics, approximately $22 billion flowed into the country through on-chain channels in the year leading up to June 2025. Growth in the MENA region was 33% year-over-year, lower than the dynamics in APAC (69%) and Latin America (63%). However, it is worth noting a steady rise in retail activity within the country itself after October 2023—actual trading volumes consistently exceeded forecast figures by an average of 60.4%. This points to high domestic demand, which the bank now intends to serve legally.
Furthermore, the regulatory environment is gradually easing. In April 2026, the Israel Capital Markets Authority issued its first license for the issuance of a shekel-pegged stablecoin—the issuer being the exchange Bits of Gold. This sets a precedent and paves the way for further digital initiatives in the banking sector.
My comment: Bank Leumi's decision is not just another pilot project but a signal of market maturity. The country's largest bank is, in effect, recognizing cryptocurrencies as a full-fledged asset class. The only question is whether the bank can offer competitive fees and execution speed that specialized crypto exchanges already provide. If so, we will witness a new wave of institutional adoption that other financial giants in the region will follow.