Bank Leumi to Bring Crypto Trading to Millions in Israel

Bank Leumi is preparing to provide crypto trading services to its 2.5 million retail customers starting in early 2027. The project will allow users of the bank and its mobile arm, Pepper, to trade Bitcoin, Ethereum, and Solana directly through the Leumi Trade application. This move marks the first time an Israeli bank has integrated a digital asset trading service for its retail base.

The initiative relies on infrastructure from Galaxy Digital. The trading platform uses GalaxyOne Institutional, while custody services will be handled by the technology formerly known as GK8, which Galaxy acquired during bankruptcy proceedings. This setup aims to provide a secure environment for customers within the existing bank ecosystem.

This is not the bank's first attempt to offer crypto services. A previous plan involving Paxos in 2022 was blocked by the Bank of Israel. However, the regulatory environment in the country has softened since then. The central bank recently relaxed rules regarding deposits from crypto transactions, and local authorities are drafting frameworks to allow licensed firms to support a wider range of digital assets.

While the plan still requires final approval from the Bank of Israel, the effort signals a shift in how traditional institutions view digital assets. With recent data showing significant on chain activity in the region, the industry will be watching to see if this partnership successfully bridges the gap between traditional banking and the crypto markets.