Israeli regulators have approved the launch of BILS, a shekel-pegged stablecoin issued by licensed crypto firm Bits of Gold. The Capital Market, Insurance and Savings Authority granted approval after a two-year pilot program on the Solana blockchain.
BILS is designed to maintain a one-to-one peg with the Israeli shekel. The token will allow users to make real-time payments, trade on-chain, and build programmable financial applications using a regulated local currency. Bits of Gold founder and CEO Youval Rouach stated: “BILS creates a direct bridge between the Israeli shekel and the global digital assets economy, enabling real-time payments, on-chain trading and programmable financial applications based on a regulated local currency.”
Reserve assets for BILS will be held in Israel through designated and separate accounts, with rules covering liquidity, redemption, and regulatory reporting. The approval allows a limited launch at a predetermined scale under close regulatory supervision.
The move places Israel among markets testing regulated stablecoin models tied to domestic currencies. It comes as the total stablecoin market value has moved above $320 billion, with Tether’s USDT and other U.S. dollar-pegged assets dominating the sector. A shekel-backed stablecoin provides an alternative to dollar-based tokens for local users.
The approval is part of broader efforts by the Israel Tax Authority and Finance Ministry to regulate crypto activity, including licensing, consumer protection, reserve controls, anti-money laundering rules, and counter-terrorist financing standards. The Bank of Israel also continues work on its Digital Shekel central bank digital currency project.
