Key Takeaways
- • Bank Leumi, Israel's largest lender, will partner with Galaxy Digital to launch cryptocurrency trading for retail and institutional customers beginning in early 2027, making it the first Israeli bank to offer such services.
- • The platform will enable customers to buy, hold, and sell Bitcoin, Ethereum, and Solana through Bank Leumi's mobile banking app (PEPPER) and Leumi Trade application.
- • Galaxy Digital will provide both trading execution through its GalaxyOne Institutional platform and custody infrastructure to support the crypto services, establishing a strategic banking footprint in Israel.
- • Bank Leumi's stock has appreciated 20% over the trailing 12 months on the Tel Aviv Stock Exchange, while Galaxy Digital shares have declined 25% year-over-year to $21.58 per share, reflecting divergent market performance despite the strategic partnership.
Summary
Bank Leumi, Israel's largest financial institution, has entered a partnership with Galaxy Digital (NASDAQ: GLXY) to deliver cryptocurrency trading services to its customer base beginning in 2027. The initiative positions Bank Leumi as the first Israeli bank to offer digital asset trading at scale, addressing growing institutional and retail demand for cryptocurrency exposure through regulated banking channels.
Under the partnership agreement, Bank Leumi customers will gain direct access to trading in three major cryptocurrencies—Bitcoin (BTC), Ethereum (ETH), and Solana (SOL)—through the bank's existing mobile banking application, PEPPER, and its dedicated trading platform, Leumi Trade. Customers will be able to execute buy, hold, and sell transactions for these assets within their standard banking interfaces, integrating cryptocurrency services into traditional retail banking workflows.
Galaxy Digital will serve as the infrastructure backbone for this initiative through two key service components: trading execution via its GalaxyOne Institutional platform, designed specifically for banks and asset managers, and custody infrastructure to secure customer cryptocurrency holdings. This arrangement reflects a broader industry trend of traditional financial institutions partnering with specialized cryptocurrency service providers to manage regulatory, operational, and security complexities associated with digital asset offerings.
Bank Leumi's leadership has stated that cryptocurrencies and digital assets represent an increasingly material component of the global financial system, signaling institutional recognition of digital assets as a permanent feature in modern financial markets. The partnership aligns with broader regional interest in blockchain technology and digital finance, positioning Israel as an emerging hub for cryptocurrency banking services in the Middle East.
The stock performance of both entities tells a divergent narrative: Bank Leumi has appreciated 20% over the past 12 months on the Tel Aviv Stock Exchange, while Galaxy Digital shares have contracted 25% over the same period to trade at $21.58 in New York, potentially reflecting broader cryptocurrency market volatility and sector sentiment despite the strategic growth opportunity the partnership represents.
Under the partnership agreement, Bank Leumi customers will gain direct access to trading in three major cryptocurrencies—Bitcoin (BTC), Ethereum (ETH), and Solana (SOL)—through the bank's existing mobile banking application, PEPPER, and its dedicated trading platform, Leumi Trade. Customers will be able to execute buy, hold, and sell transactions for these assets within their standard banking interfaces, integrating cryptocurrency services into traditional retail banking workflows.
Galaxy Digital will serve as the infrastructure backbone for this initiative through two key service components: trading execution via its GalaxyOne Institutional platform, designed specifically for banks and asset managers, and custody infrastructure to secure customer cryptocurrency holdings. This arrangement reflects a broader industry trend of traditional financial institutions partnering with specialized cryptocurrency service providers to manage regulatory, operational, and security complexities associated with digital asset offerings.
Bank Leumi's leadership has stated that cryptocurrencies and digital assets represent an increasingly material component of the global financial system, signaling institutional recognition of digital assets as a permanent feature in modern financial markets. The partnership aligns with broader regional interest in blockchain technology and digital finance, positioning Israel as an emerging hub for cryptocurrency banking services in the Middle East.
The stock performance of both entities tells a divergent narrative: Bank Leumi has appreciated 20% over the past 12 months on the Tel Aviv Stock Exchange, while Galaxy Digital shares have contracted 25% over the same period to trade at $21.58 in New York, potentially reflecting broader cryptocurrency market volatility and sector sentiment despite the strategic growth opportunity the partnership represents.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.