The Israeli Capital Markets Authority has issued a license for the first time to launch a stablecoin pegged to the shekel. The issuer will be the cryptocurrency exchange Bits of Gold.
The company received approval after two years of testing in a "sandbox" environment. In 2024, the Bank of Israel invited local and foreign service providers to participate in developing "innovative use cases" for the digital shekel.
The asset, under the ticker BILS, is built on the Solana blockchain with the involvement of custodian Fireblocks. Security auditing was conducted by EY.
Developers noted that the stablecoin sector has surpassed $300 billion. The dominance of dollar-pegged tokens is concerning for other countries, as regulators believe it threatens their digital sovereignty. The launch of BILS aims to address this issue for the local market.
Bits of Gold emphasized that the shekel has performed well against developed markets, appreciating nearly 20% against the dollar over the past year. The introduction of a digital version will position the shekel alongside the euro, yen, and Singapore dollar, which are already utilized in blockchain systems.
In September, Kazakhstan announced Evo, a stablecoin on the Solana blockchain.
In December, it was revealed that Cumberland would assist Bhutan in launching a national stablecoin.