Israel’s Largest Bank Leumi to Launch Cryptocurrency Trading in Early 2027

Bank Leumi Revives Crypto Ambitions with Galaxy Partnership

Bank Leumi, Israel’s largest financial institution, has partnered with Galaxy Digital to introduce cryptocurrency trading capabilities to its millions of retail customers, according to an announcement from the two firms. The initiative marks the company’s second major push into digital assets after a 2022 attempt that stalled without regulatory clearance.

Trading Platform Launch Expected Early 2027

The offering, set to go live in early 2027 pending Bank of Israel approval, will enable customers to buy, hold, and sell Bitcoin, Ethereum, and Solana through Leumi Trade, the bank’s capital markets application, as well as through Pepper, its mobile banking arm. Customers will access these services through a dedicated, secured section integrated into their existing banking apps, treating cryptocurrency trading similar to their stock and bond investments.

This marks Leumi’s second formal attempt at mainstream crypto adoption. The bank previously announced a partnership with Paxos in March 2022 to offer Bitcoin and Ethereum trading but shelved those plans when regulatory approval never materialized from the Bank of Israel.

Regulatory Landscape Shifts in Leumi’s Favor

The regulatory environment for crypto in Israel has materially shifted since the failed 2022 attempt, creating a more permissive framework for banks to offer digital asset services. In mid-2026, the Bank of Israel lifted deposit delays that had previously affected crypto-linked transactions and prohibited blanket refusals of funds from licensed crypto service providers. Simultaneously, the Capital Market Authority established formal wallet-security and capital-adequacy standards for firms handling digital assets.

More significantly, a regulatory circular issued on August 1, 2026, opened regulated trading to the top 50 cryptocurrencies by market capitalization, provided they meet a $500 million valuation threshold. This creates a clearer, lower-friction pathway for traditional banks to offer crypto services to retail customers without navigating unclear or shifting rules.

Galaxy Digital provides both the trading execution platform through GalaxyOne Institutional and custody infrastructure via GK8, an air-gapped wallet technology designed to maximize security by keeping private keys offline. The infrastructure is underpinned by Galaxy’s regulatory licenses, including its New York DFS BitLicense and a money-transmission license obtained in May 2026.

With a customer base of approximately 2.5 million retail clients, Bank Leumi represents a significant entry point for institutional capital and mainstream retail adoption of digital assets in Israel. The integration of mainstream banking infrastructure with cryptocurrency trading signals growing institutional acceptance of digital assets within regulated banking frameworks—a trend that could drive mainstream crypto adoption across other markets.

Source: Bank Leumi, via Decrypt. Not financial advice.