Bank Leumi is preparing a breakthrough: Israel's first bank launches cryptocurrency trading
Israeli banking giant Leumi has announced a strategic alliance with Galaxy Digital, giving clients direct access to digital asset trading. This is a landmark event for the entire Middle Eastern financial sector: for the first time, the country's largest bank is integrating cryptocurrencies into its retail products.
Launch details and technological foundation
According to my data, the service will become available through a secure module in the Leumi Trade app. Users will be able to trade Bitcoin, Ethereum, and Solana, with the launch scheduled for early 2027. The technological foundation will be the institutional platform GalaxyOne and the custody solution Custody Infrastructure (formerly GK8), ensuring a high level of security and compliance with strict banking standards.
"This initiative is an important part of our innovation strategy. It will give clients simple, secure, and regulated access to digital asset trading on one of the world's best technology platforms," emphasized the bank's top executive, Maya Ravia.
Ravia rightly notes that cryptocurrencies are "gradually becoming an integral part of the global financial system." The bank's task is to provide clients with the ability to work with them within a regulated banking model, which is critical for mass adoption.
Historical context and market trends
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 Bitcoin and Ethereum operations with a minimum threshold of 50 shekels (~$15.5). However, the service never launched due to regulatory delays. The current step looks more decisive and technologically prepared.
Interestingly, according to Chainalysis estimates, 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 — more modest than in APAC (69%) and Latin America (63%). At the same time, analysts note a steady rise in retail activity in the country after October 2023: actual volumes exceeded forecasts by an average of 60.4%.
It is worth recalling that in April 2026, the Israel Capital Markets Authority issued its first license for a shekel-pegged stablecoin — the issuer being the exchange Bits of Gold. This creates a favorable regulatory environment for the further development of digital finance in the country.
My verdict: Leumi's decision is not just a marketing move but a strategic response to growing institutional demand. However, success will depend on how quickly the bank can scale the service and offer competitive fees compared to crypto exchanges. That said, the very fact of such a giant entering the space is a powerful signal for all of traditional banking: the era of ignoring crypto assets is over.