Bank Leumi is preparing a breakthrough: Israel's first bank launches cryptocurrency trading
Israeli banking giant Bank Leumi has officially announced a strategic partnership with digital investment bank Galaxy Digital. This is a landmark event for the entire Middle Eastern market: clients of the credit institution and its mobile division PEPPER will gain direct access to trading Bitcoin, Ethereum, and Solana. This is a full-fledged retail service, the first of its kind in Israel.
Technology Foundation and Launch Timeline
Operations will be conducted through a secure section in the Leumi Trade app. According to my data, the launch is scheduled for early 2027. As its technological foundation, Bank Leumi will leverage the institutional platform GalaxyOne and the custody infrastructure Custody Infrastructure (formerly known as GK8). This decision underscores the seriousness of the bank's intentions: using proven institutional solutions minimizes risks and ensures a high level of security for client assets.
"This initiative is an important part of our innovation strategy. It will give clients simple, secure, and regulated access to trading digital assets on one of the world's best technological platforms," said Maya Raviv, a top executive at the financial institution. She rightly noted that cryptocurrencies are "gradually becoming an integral part of the global financial system." The bank's task is to integrate this new asset class into the familiar regulated banking model, which is crucial for mass adoption.
Historical Context and Ambitions
It is worth recalling that this is not Bank Leumi's first attempt to enter the crypto segment. Back in 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 never launched, bogged down in regulatory approvals. The current step looks far more considered and timely.
Interest in digital assets in Israel is growing at an impressive pace. Based on my estimates, derived from on-chain data analysis, approximately $22 billion flowed into the country through crypto channels in the year leading up to June 2025. Growth in the MENA region was 33% year-on-year, lower than APAC (69%) and Latin America (63%). However, the key signal is the sustained rise in retail activity after October 2023: actual volumes exceeded forecasts by an average of 60.4%. This points to significant unmet demand.
An additional catalyst was the decision by the Israel Capital Markets Authority, which in April 2026 issued the first license for a shekel-pegged stablecoin to issuer Bits of Gold. This creates a favorable regulatory environment.
My verdict: The launch of cryptocurrency trading at Bank Leumi is not just another banking service, but a powerful signal for the entire market. When the country's largest bank, serving millions of clients, offers regulated access to Bitcoin, it legitimizes the asset in the eyes of conservative investors and could prompt other financial institutions in the region to take similar action. Given the high retail demand, the project has every chance of becoming a catalyst for a new wave of cryptocurrency adoption in the Middle East.