Israel’s largest bank, Bank Leumi, has partnered with Galaxy Digital to launch regulated crypto trading services for Bitcoin, Ethereum, and Solana through its Leumi Trade app starting in early 2027.
This is the first time in the country’s financial landscape that a major Israeli bank will directly offer crypto trading.
The Partnership Behind the Innovation
Bank Leumi announced that customers of its capital markets app, Leumi Trade, and its mobile banking arm PEPPER will soon be able to buy, hold, and sell Bitcoin, Ether, and Solana.
The service will be powered by GalaxyOne Institutional, Galaxy Digital’s infrastructure platform for banks and asset managers, and supported by Galaxy’s custody solution, formerly known as GK8.
Bank Leumi’s Head of Strategy, Maya Ravia, emphasized that the initiative is part of the bank’s broader innovation strategy, designed to provide customers with regulated access to digital assets within its existing banking ecosystem.
Galaxy Israel CEO Lior Lamesh added that the partnership combines trading and custody infrastructure, positioning Israel as a growing hub for institutional crypto adoption.
A First for Israel
Bank Leumi’s adoption of crypto services is groundbreaking because Israeli banks have historically been cautious about crypto, often citing compliance risks. Through its partnership with Galaxy, Leumi is portraying confidence in the institutionalization of digital assets.
Customers will gain access to crypto trading alongside traditional investment services, reducing reliance on offshore exchanges and unregulated platforms.
The partnership also indicates Israel’s ambition to position itself as a regional leader in fintech and blockchain innovation. With Galaxy providing custody and trading infrastructure, Leumi can ensure compliance with both domestic regulations and international standards, addressing concerns about fraud, money laundering, and investor protection.
Crypto Laws and Regulations in Israel
Israel’s regulatory framework for crypto services has evolved significantly in recent years.
The Israeli Securities Authority (ISA) has clarified that certain digital assets may qualify as securities under the Securities Law of 1968, requiring licensing and compliance. In 2023, Israel passed amendments to its Anti‑Money Laundering Order, mandating that crypto service providers conduct KYC checks, transaction monitoring, and suspicious activity reporting.
By 2024, the Capital Market, Insurance and Savings Authority (CMISA) introduced licensing requirements for crypto custodians and trading platforms, ensuring that banks offering crypto services must partner with regulated providers.
This framework paved the way for Bank Leumi’s partnership with Galaxy, allowing the bank to integrate crypto trading into its regulated capital markets infrastructure.
Crypto is now seen to be moving from the fringes of finance into mainstream banking.
To Israeli investors, the launch of crypto trading through a major bank offers greater legitimacy and security, showing how banks can integrate digital assets responsibly, balancing innovation with oversight.
The initiative provides customers with a secure, regulated access to crypto markets, announcing Israel’s emergence as a fintech innovator, balancing innovation with regulation in the evolving digital finance landscape.
