Overview
- Bank Leumi, the largest bank in Israel, is set to allow its customers to trade Bitcoin, Ethereum, and Solana via its Leumi Trade platform using Galaxy's trading and custody systems.
- This marks Bank Leumi's second attempt at entering the cryptocurrency market, following an unsuccessful effort in 2022.
- The bank aims to launch this service in early 2027, contingent upon approval from the Bank of Israel, which previously halted Leumi's 2022 collaboration with Paxos.
On Thursday, Bank Leumi announced its partnership with Galaxy Digital to facilitate cryptocurrency trading through its digital investment service, Pepper.
According to an official press release, customers of Leumi and its mobile banking platform PEPPER will soon be able to buy, hold, and sell various digital assets, including Bitcoin, Ether, and Solana, directly within the Leumi Trade application. Trading will be conducted in a secure area of the app, with availability projected for early 2027.
Myriad: What will be Bitcoin's next move? Share your prediction.This is not Bank Leumi's first foray into crypto. In March 2022, Pepper Invest announced plans to enable Bitcoin and Ethereum trading through Paxos, claiming to be the first bank in Israel to do so. However, that initiative never materialized due to a lack of regulatory approval. The earlier effort was stalled by the Bank of Israel.
What Makes This Attempt Different
Until recently, Israeli banks were known to delay crypto-related deposits and could outright refuse to accept fiat currency from crypto sources. Licensed firms had restrictions, trading only a limited selection of coins without clear custody and capital regulations.
This landscape shifted in mid-2026 when the Bank of Israel lifted deposit delays and prohibited blanket refusals of funds from licensed crypto providers. The Capital Market Authority established security and capital requirements for wallets (2 million New Israeli Shekels for non-custodial firms and 2.5 million New Israeli Shekels for custodial ones, along with mandatory segregation of customer assets). An announcement in August opened the door for trading the top 50 cryptocurrencies by market capitalization, which facilitates a regulated, smoother entry for banks like Leumi to offer crypto services to retail clients.
Galaxy possesses a New York DFS BitLicense and a money-transmission license obtained in May 2026, making it a regulated partner for Leumi.
The trading process will be powered by GalaxyOne Institutional, a platform designed for banks and asset managers, while custody services will be provided by GK8, a wallet manufacturer that operates in an air-gapped environment, ensuring it never connects to the internet. Galaxy acquired GK8 following the collapse of Celsius.
Customers will conduct trades within the same app used for managing stocks and bonds. Bank Leumi has around 2.5 million retail clients.
“The future of finance will operate on open, programmable systems, and we believe the banks that take the initiative will shape the future,” stated Lior Lamesh, CEO of Galaxy Israel. “Leumi is pioneering the introduction of digital assets to its customer base with our support.”
Leumi and Galaxy anticipate launching the service on the Leumi Trade platform in early 2027, pending approval from the Bank of Israel, which previously blocked the 2022 initiative.