Bank Leumi makes a breakthrough: the first bank in Israel launches cryptocurrency trading
Israeli banking giant Leumi (Bank Leumi) has officially confirmed a strategic partnership with Galaxy Digital, marking a historic step for the entire regional financial system. As early as the beginning of 2027, the bank's clients and those of its digital division PEPPER will gain direct access to trading bitcoin, Ethereum, and Solana through the secure interface of the Leumi Trade app.
Technological Foundation and Institutional Approach
At the core of the new service lies the institutional platform GalaxyOne and the custody solution Custody Infrastructure (formerly GK8), owned by Galaxy Digital. This is not just an experiment but a full-fledged integration of digital assets into the regulated banking infrastructure. The bank's top executive Maya Ravia emphasized that the initiative is a key element of the innovation strategy, providing clients with a secure and fully compliant channel for working with cryptocurrencies.
Notably, Leumi had already attempted to enter the retail crypto segment. In March 2022, the Pepper Invest platform announced cooperation with stablecoin issuer Paxos, planning to launch operations with bitcoin and Ethereum with a minimum threshold of 50 shekels (~$15.5). However, that project was never realized, stalling on regulatory barriers. Now, with the involvement of such a powerful partner as Galaxy, the bank's ambitions look far more convincing.
Israeli Market: Figures and Dynamics
My analysis of Chainalysis data shows that in the year leading up to June 2025, approximately $22 billion flowed into Israel through on-chain channels. Growth in the MENA region amounted to 33% year-on-year, noticeably lower than figures for APAC (69%) and Latin America (63%). However, the key indicator is a sustained surge in retail activity after October 2023: actual volumes exceeded forecast values by an average of 60.4%. This points to high organic demand, which the bank now intends to serve legally.
An additional catalyst was the decision by the Israel Capital Markets Authority, which in April 2026 issued the first license for the issuance of a shekel-pegged stablecoin. The issuer was the exchange Bits of Gold.
Expert opinion: The launch of cryptocurrency trading at Leumi is not just another banking service but a powerful signal for the entire market. The legitimization of digital assets by Israel's systemically important bank will inevitably push other financial institutions in the region to take similar steps. Given that retail demand in the country already exceeds forecasts, this move could serve as a catalyst for a significant influx of institutional capital in the coming years.