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Bank Leumi wants in on crypto. Israel’s largest and oldest commercial bank has announced plans to let customers buy, hold, and sell bitcoin, ether, and solana directly through its banking platforms — but the whole thing hinges on a green light from the Bank of Israel, which hasn’t come yet.
The bank is working with Galaxy Digital, the Nasdaq-listed crypto firm, to build out the trading and custody infrastructure behind the service. Galaxy won’t be a visible brand to Leumi’s customers, though. The arrangement is a white-label setup, meaning Leumi keeps its name on everything while Galaxy handles the plumbing underneath. It’s basically the same model as a conventional brokerage account — the bank holds the assets, not the customer. No personal wallets, no standalone exchanges. You’d access crypto the same way you’d check your stock portfolio.
The service is planned to live inside Leumi’s existing Leumi Trade investment app. And the bank’s mobile arm, PEPPER, is part of the rollout too, meant to make the experience feel less technical for everyday users. No details yet on fees, trading limits, or the final list of supported assets. Those are still undisclosed.
Galaxy’s GK8 Acquisition Powers the Backend
Galaxy’s role here isn’t random. Back in 2023, Galaxy bought GK8 — an Israel-founded custody technology company — for $44 million. GK8’s tech keeps key-signing functions offline, which cuts down the risk of remote attacks. That’s a real vulnerability in crypto, and it’s probably a big reason Leumi picked Galaxy as its partner rather than someone else. The security angle matters when you’re a bank trying to convince regulators you’ve thought this through.
The planned launch is set for early 2027, pending approvals. That timeline could slip. It’s happened before — Leumi tried to launch something similar in the past and got stopped cold by regulatory barriers. The environment seems friendlier now, but “seems” is doing a lot of work in that sentence.
Israel’s Regulators Are Shifting — Slowly
There are real signs of movement on the regulatory side. Israel’s banking supervisors have put forward draft rules that would make it easier to transfer funds from licensed virtual asset service providers. Separately, the Capital Market, Insurance and Savings Authority has tightened its rules for crypto firms operating in Israel. The thinking is that tighter oversight of crypto companies gives banks more confidence to work alongside them without taking on unacceptable risk.
But the Bank of Israel hasn’t made its final call yet. That decision is expected before the planned launch, and without it, nothing moves. Customer education programs are also listed as a prerequisite — also not finalized.
The market context makes the timing understandable. Over 25% of Israelis have reportedly engaged with digital assets recently. And per Chainalysis data, Israel received roughly $22 billion in on-chain crypto value over the year ending in mid-2025. That’s a serious user base sitting outside the traditional banking system, and Leumi clearly wants to pull some of that activity in-house.
Competitive Pressure on Israeli Banks
No other major Israeli bank has announced a comparable service. Not Bank Hapoalim. Not Mizrahi-Tefahot. Not Bank Discount. If Leumi gets approval and launches successfully, that changes fast. Banks watch each other. A regulated crypto offering from the country’s biggest institution would be hard for competitors to ignore, especially with a quarter of the population already active in the space.
There’s a broader point here too. Integrating crypto into a traditional banking app isn’t just a product decision — it’s a statement about what a bank thinks its customers want and where the industry is going. Leumi is betting that people want access to bitcoin and ether without the friction of setting up a separate account somewhere else. That’s probably a safe bet given adoption trends across the region, but execution is everything.
The white-label structure with Galaxy keeps Leumi in control of the customer relationship. It can set the terms, manage compliance, and keep the experience consistent with its existing platforms. Galaxy gets a major institutional client and a foothold in Israeli retail banking. Both sides have incentive to make it work.
Still, the unknowns are significant. Fees aren’t set. The asset list could change. Regulatory approval could come with conditions that reshape the product entirely. Leumi’s crypto plans are real, but they’re also very much a proposal right now — and the Bank of Israel holds the deciding vote.
Galaxy’s $44 million GK8 acquisition in 2023 is now positioned as a core piece of the custody infrastructure for the service.
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Frequently Asked Questions
Which cryptocurrencies will Bank Leumi offer to customers?
Bank Leumi plans to offer bitcoin, ether, and solana through its Leumi Trade investment app, pending regulatory approval from the Bank of Israel.
What role does Galaxy Digital play in the Bank Leumi crypto service?
Galaxy Digital provides the trading and custody infrastructure under a white-label arrangement, with its GK8 technology — acquired in 2023 for $44 million — handling offline key-signing for enhanced security.
Why It Matters
This collaboration between Bank Leumi and Galaxy Digital signifies a pivotal moment for the Israeli banking sector as it seeks to embrace digital assets, potentially reshaping the landscape for crypto adoption in the country. If approved by the Bank of Israel, this initiative could serve as a model for other financial institutions in the region, highlighting the increasing mainstream acceptance of cryptocurrencies and the importance of regulatory frameworks in facilitating their integration into traditional banking services. Such developments may also influence consumer confidence and investment trends within the Israeli crypto market.
