Bank Leumi, Israel’s largest commercial bank, announced on August 13 that it plans to launch Bitcoin, Ether and Solana trading through its Leumi Trade platform in early 2027, pending approval from the Bank of Israel. The service will also be available to customers of Leumi’s digital banking unit PEPPER.
Galaxy Digital confirmed the partnership on August 14. Under the arrangement, GalaxyOne Institutional will provide execution services, while Galaxy Custody Infrastructure — formerly GK8 — will supply the technology to safeguard customer assets. The offering will be custodial: customers will trade and hold crypto through the bank rather than managing private keys or separate wallets.
The planned launch follows changes in Israel’s regulatory landscape. In summer 2026, the Bank of Israel published draft directives easing how banks treat funds arriving from licensed crypto service providers, addressing a long-standing complaint about frozen or rejected deposits. Separately, the Capital Market Authority established capital floors for crypto firms: NIS 2 million for entities that do not touch customer assets, NIS 2.5 million for custodians, and an additional 0.25% of total custodied assets held in cash, deposits or short-term government bonds.
Leumi first attempted a similar service in March 2022 through PEPPER and Paxos, but regulators blocked that launch due to the absence of written rules for banks handling customer crypto. The new plan replaces Paxos with Galaxy, adds Solana, and moves the product into Leumi Trade. If approved, Leumi says it would become the first Israeli bank to offer direct digital-asset trading through its own banking infrastructure.
A distinctive feature of the planned service is automatic tax withholding at source. Israeli crypto investors currently must calculate their own capital gains and file with the Israel Tax Authority. Leumi intends to withhold crypto taxes for customers, which the bank sees as a major convenience even if trade pricing may not beat global exchanges. Maya Ravia, Leumi’s Head of Strategy, said the move responds to digital assets becoming an increasingly integral part of the global financial system.
The announcement could pressure domestic Israeli exchanges, whose main structural advantage has been shekel banking access rather than product quality. Once Bank Leumi sells the same three assets inside an app already used by about 2.5 million retail clients, smaller venues may have to compete on asset breadth, staking or fees. Other Israeli banks such as Hapoalim and Discount are expected to respond.
Galaxy has not disclosed revenue-sharing terms, and Leumi has not published its fee schedule. A January 2026 Geocartography survey cited by TheMarker found that 21% of Israeli adults already hold cryptocurrency. The launch remains provisional until Bank of Israel approval is granted.
