Key Takeaways
- • Bank Leumi, Israel's largest bank, is partnering with Galaxy Digital to launch Bitcoin, Ethereum, and Solana trading for approximately 2.5 million customers via its mobile app and Leumi Trade platform in early 2027, pending Bank of Israel regulatory approval.
- • Galaxy Digital will provide institutional-grade trading infrastructure through GalaxyOne Institutional and custody services via its Custody Infrastructure platform (formerly GK8), positioning the bank as the first Israeli lender to offer direct crypto asset trading to retail customers.
- • This represents Bank Leumi's second attempt at launching crypto services after a failed 2022 initiative with Paxos that stalled due to regulatory delays; the current push follows mid-2026 regulatory changes, including the Bank of Israel's removal of automatic deposit delays and new Capital Market Authority standards (NIS 2–2.5 million capitalization requirements for custody firms).
- • Customers will access buy, hold, and sell functionality for digital assets through a dedicated, secured section of the bank's app, with Galaxy providing the underlying infrastructure to support institutional-level security and compliance standards.
- • The launch timeline targets early 2027 but remains contingent on final Bank of Israel approval, underscoring ongoing regulatory scrutiny of institutional crypto adoption in the Israeli banking sector.
Summary
Bank Leumi has announced a strategic partnership with Galaxy Digital to offer Bitcoin, Ethereum, and Solana trading services to its customer base, expected to launch in early 2027 subject to regulatory approval. The initiative will extend crypto trading access to approximately 2.5 million Bank Leumi customers through its mobile banking app (PEPPER) and dedicated Leumi Trade investment platform. Customers will be able to buy, hold, and sell the three digital assets within a secured section of the application.
Galaxy Digital will serve as the core infrastructure provider for the offering. The company will supply trading capabilities through GalaxyOne Institutional, an institutional-grade trading platform, and custody services through its Custody Infrastructure platform, formerly known as GK8. This partnership positions Bank Leumi to meet institutional security and compliance standards required for a regulated financial institution. Maya Ravia, Head of Strategy at Bank Leumi, stated in a company announcement that "digital assets are gradually becoming an integral part of the global financial system," signaling the bank's strategic intent to integrate crypto services into mainstream banking operations. Galaxy Israel CEO Lior Lamesh framed the initiative within a broader financial evolution, noting that "the future of finance will run on open, programmable rails, and we believe the banks that move first will define the era that follows."
This partnership marks Bank Leumi's second attempt at launching crypto trading services. A prior initiative in 2022, which involved Paxos as the infrastructure partner, stalled due to regulatory delays at the Bank of Israel and never secured the necessary approvals to launch. The current effort benefits from a shifting regulatory environment in Israel. In mid-2026, the Bank of Israel removed automatic delays on crypto-linked deposits exceeding NIS 100,000, and the Capital Market Authority implemented new security and capital standards, requiring non-custody firms to maintain NIS 2 million in capital and custody-providing firms to maintain NIS 2.5 million. These regulatory clarifications have created a more defined framework for institutional crypto adoption.
However, the launch remains contingent on final approval from the Bank of Israel, introducing execution risk to the early 2027 timeline. The regulatory gate presents a critical milestone for Bank Leumi's crypto ambitions and signals that Israeli banking authorities continue to evaluate institutional crypto services on a case-by-case basis despite recent regulatory progress.
Galaxy Digital will serve as the core infrastructure provider for the offering. The company will supply trading capabilities through GalaxyOne Institutional, an institutional-grade trading platform, and custody services through its Custody Infrastructure platform, formerly known as GK8. This partnership positions Bank Leumi to meet institutional security and compliance standards required for a regulated financial institution. Maya Ravia, Head of Strategy at Bank Leumi, stated in a company announcement that "digital assets are gradually becoming an integral part of the global financial system," signaling the bank's strategic intent to integrate crypto services into mainstream banking operations. Galaxy Israel CEO Lior Lamesh framed the initiative within a broader financial evolution, noting that "the future of finance will run on open, programmable rails, and we believe the banks that move first will define the era that follows."
This partnership marks Bank Leumi's second attempt at launching crypto trading services. A prior initiative in 2022, which involved Paxos as the infrastructure partner, stalled due to regulatory delays at the Bank of Israel and never secured the necessary approvals to launch. The current effort benefits from a shifting regulatory environment in Israel. In mid-2026, the Bank of Israel removed automatic delays on crypto-linked deposits exceeding NIS 100,000, and the Capital Market Authority implemented new security and capital standards, requiring non-custody firms to maintain NIS 2 million in capital and custody-providing firms to maintain NIS 2.5 million. These regulatory clarifications have created a more defined framework for institutional crypto adoption.
However, the launch remains contingent on final approval from the Bank of Israel, introducing execution risk to the early 2027 timeline. The regulatory gate presents a critical milestone for Bank Leumi's crypto ambitions and signals that Israeli banking authorities continue to evaluate institutional crypto services on a case-by-case basis despite recent regulatory progress.
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