Bank Leumi is positioning Israel as a leader in institutional crypto trading: launch in 2027
Israel's largest financial institution, Bank Leumi, is making a historic breakthrough: starting in early 2027, its clients will gain direct access to trading Bitcoin, Ethereum, and Solana. This is the first time in the country's history that a systemically important bank has integrated digital assets into its retail infrastructure.
A key element of the deal is a strategic partnership with Galaxy Digital. The technological foundation will be provided by the institutional platform GalaxyOne and the custody solution Custody Infrastructure (formerly GK8). Trading will be available through a secure module in the Leumi Trade app, ensuring a high level of security and compliance with strict regulatory standards.
A strategic step in the era of digital finance
Maya Ravia, a senior bank executive, emphasizes that this initiative is not just an experiment but part of a long-term innovation strategy. According to her, cryptocurrencies are "gradually becoming an integral part of the global financial system." The bank's goal is to provide clients with a simple and regulated bridge into this new world, avoiding the chaos of unregulated exchanges.
Notably, this is not 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 an entry threshold of just 50 shekels (~$15.5). However, that project was never realized due to regulatory delays. The current launch appears more robust, given the increased maturity of the market and the availability of licensed custody solutions.
Market scale and regional context
Analyzing Chainalysis data, I see a steady trend: 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-over-year, lower than APAC (69%) and Latin America (63%). However, more telling is the surge in retail activity after October 2023—actual volumes exceeded forecasts by an average of 60.4%. This points to high organic demand that the bank can now legally monetize.
Incidentally, the country's regulatory environment is already prepared for such steps: in April 2026, the Capital Markets Authority issued its first license for a shekel-pegged stablecoin, with the Bits of Gold exchange acting as the issuer.
My expert conclusion: Bank Leumi's decision is a signal for the entire banking sector in the Middle East. While many traditional players are merely discussing cryptocurrencies, Israel is demonstrating a concrete path to integration. Given the experience of 2022, the key risk remains meeting launch timelines, but having a partner like Galaxy Digital significantly increases the chances of success. This could become a catalyst for similar initiatives in Europe and Asia.