Bank Leumi opens the era of institutional bitcoin trading 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.
Next-Level Infrastructure
Trading will be implemented through a secure module in the Leumi Trade app. The service launch is scheduled for early 2027. The technological foundation is the institutional platform GalaxyOne and the custody solution Custody Infrastructure (formerly GK8), ensuring compliance with the strictest security standards.
"This is a key element of our innovation strategy. We are providing clients with simple, secure, and fully regulated access to digital assets based on one of the world's best platforms," emphasizes the bank's top executive Maya Ravia. She rightly notes that cryptocurrencies are becoming an integral part of the global financial system, and the bank's task is to integrate them into a regulated banking model.
Second Attempt and Market Context
This is not Leumi's first attempt to conquer the retail crypto segment. Back in March 2022, the Pepper Invest platform announced a partnership with stablecoin issuer Paxos to launch Bitcoin and Ethereum operations with a minimum threshold of 50 shekels (~$15.5). However, that project never launched, bogged down in regulatory procedures. Now the bank is approaching the matter more systematically.
Interest in the market is no coincidence. According to my data, in the year leading up to June 2025, approximately $22 billion flowed into Israel through on-chain channels. Growth in the MENA region was 33% year-on-year — more modest than in APAC (69%) and Latin America (63%), but analysts note a steady rise in retail activity after October 2023: actual volumes exceeded forecasts by an average of 60.4%. This points to high unmet demand that the bank intends to monetize.
An additional catalyst is regulatory progress: in April 2026, the Israel Capital Markets Authority issued its first license for the issuance of a shekel-pegged stablecoin to the exchange Bits of Gold. This creates a precedent for the legalization of digital assets in the country.
My comment: Leumi's decision is not just a marketing move but a clear signal of the convergence of traditional finance and the crypto industry. The 2027 launch gives the bank time to refine its infrastructure, but the main risk is speed: within two years, competition from global giants could become even fiercer. Nevertheless, for the Israeli market, this is a historic step that will inevitably push other players to take similar actions.