Israel’s Largest Bank to Offer Bitcoin, Ethereum, Solana Trading
Bank Leumi, Israel's largest bank, will allow customers to trade Bitcoin, Ethereum, and Solana in its Leumi Trade app via Galaxy, targeting early 2027. The move follows mid-2026 regulatory changes that cleared a path after a 2022 Paxos deal stalled awaiting Bank of Israel approval.
Quick Take
Bank Leumi partners with Galaxy to offer Bitcoin, Ethereum, Solana trading.
Service targets early 2027 inside Leumi Trade app, pending Bank of Israel approval.
Regulatory changes in mid-2026 removed deposit delays and enabled top-50 coin trading.
Galaxy provides execution via GalaxyOne and custody through air-gapped GK8.
Market Impact Analysis
BullishMajor Israeli bank offering BTC, ETH, SOL trading to 2.5M retail customers is a structural adoption tailwind, though delayed to 2027 and pending regulatory approval.
Speculation Analysis
Key Takeaways
- Bank Leumi partners with Galaxy Digital to offer Bitcoin, Ethereum, and Solana trading through its Leumi Trade app.
- Service targets early 2027 but requires Bank of Israel approval—the same hurdle that stalled a 2022 Paxos plan.
- Mid-2026 regulatory changes removed deposit delays and allowed trading of top-50 coins above a $500 million market cap.
- Galaxy handles execution via GalaxyOne and custody through air-gapped GK8 wallets.
What Happened
Bank Leumi, Israel's largest bank, announced a partnership with Galaxy Digital to bring cryptocurrency trading to its customers. Through the Leumi Trade app, users—including those of its mobile arm Pepper—will be able to buy, hold, and sell Bitcoin, Ethereum, and Solana. The service operates in a dedicated, secured section of the app and is expected to go live in early 2027. This marks Leumi's second attempt at crypto trading after a 2022 plan with Paxos never launched due to missing regulatory approval. For now, no trading is available until the Bank of Israel signs off.
The Numbers
Bank Leumi serves approximately 2.5 million retail customers, giving the offer substantial reach. The launch target is early 2027, but the Bank of Israel must approve first. Mid-2026 regulatory changes opened trading to the top 50 coins by market cap above a $500 million threshold. Galaxy Digital brings its New York DFS BitLicense and a money-transmission license obtained in May 2026. Execution flows through GalaxyOne Institutional, while custody uses air-gapped GK8 wallets. The bank's previous 2022 attempt with Paxos stalled for years, highlighting the importance of the new regulatory framework.
Why It Happened
Until mid-2026, Israeli banks automatically delayed crypto-related deposits and could refuse funds from licensed providers. The Bank of Israel removed those deposit delays and barred blanket refusals. Simultaneously, the Capital Market Authority set wallet-security and capital standards, including mandatory customer-asset segregation. An August 1 circular then allowed trading in the top 50 coins above $500 million market cap. These changes created a regulated, lower-friction on-ramp. Galaxy's licenses and infrastructure gave Leumi a compliant partner able to execute and custody digital assets.
Broader Impact
The move signals renewed institutional crypto adoption in Israel. As the country's largest bank, Leumi's entry could pressure competitors to offer similar services. For Bitcoin, Ethereum, and Solana, this represents a structural long-term demand tailwind. The partnership also demonstrates how regulatory clarity can unlock previously stalled banking integrations.
What to Watch Next
- Bank of Israel's approval decision for Leumi's crypto trading service.
- Announcements from other Israeli banks considering similar crypto offerings.
- Expansion of the allowed coin list beyond the top 50 as regulations evolve.
This article is for informational purposes only and does not constitute financial advice.
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