Israel's Bank Leumi partners with Galaxy Digital to offer Bitcoin, Ethereum and Solana trading

Bank Leumi, Israel's largest bank, is partnering with Galaxy Digital to offer direct Bitcoin, Ether, and Solana trading to its 2.5 million customers through its Leumi Trade app and Pepper platform. Scheduled for early 2027 pending Bank of Israel approval, the initiative marks Leumi's second attempt at crypto trading after a failed 2022 effort. The launch is enabled by sweeping mid-2026 regulatory reforms that removed deposit delays and set clear custody standards. Galaxy Digital will provide trading via GalaxyOne Institutional and secure assets using its air-gapped GK8 custody infrastructure.

Bank Leumi–Galaxy Digital partnership

• ▪Bank Leumi previously planned to launch cryptocurrency trading in March 2022 through a partnership with Paxos, but the initiative stalled and never launched because it failed to receive regulatory sign-off from the Bank of Israel.
• ▪Bank Leumi, Israel's largest bank, partnered with Galaxy Digital to allow customers to buy, hold, and sell Bitcoin, Ether, and Solana directly through the Leumi Trade app and its mobile banking unit, Pepper.
• ▪The cryptocurrency trading service planned by Bank Leumi and Galaxy Digital is expected to launch in early 2027, pending regulatory approval from the Bank of Israel.

Israeli crypto regulatory evolution

• ▪Israel's Capital Market Authority established wallet-security and capital standards requiring 2 million New Israeli Shekels for non-custody firms and 2.5 million New Israeli Shekels for custody firms, alongside mandatory customer-asset segregation.
• ▪An August 1, 2026 circular by Israeli regulators opened cryptocurrency trading to the top 50 coins by market cap that sit above a $500 million threshold.
• ▪In mid-2026, the Bank of Israel removed deposit delays and barred banks from blanket refusals of funds from licensed cryptocurrency providers, establishing a regulated framework for banks to offer digital assets.

GalaxyOne Institutional trading platform

• ▪Galaxy Digital holds a New York State Department of Financial Services BitLicense and obtained a money-transmission license in May 2026, establishing itself as a regulated counterparty for Bank Leumi.
• ▪Galaxy Digital will provide trading infrastructure for Bank Leumi's cryptocurrency service through GalaxyOne Institutional, its dedicated platform for banks, asset managers, and institutional clients.

Galaxy custody infrastructure

• ▪Galaxy Digital's custody infrastructure utilizes GK8, an air-gapped wallet manufacturer that never connects to the internet, which Galaxy Digital acquired following the collapse of Celsius.
• ▪Bank Leumi signed an agreement to use Galaxy Digital's custody infrastructure, formerly known as GK8, to support the custody framework behind its upcoming digital asset offering.

Israel crypto adoption trends

• ▪Geopolitical headwinds, including the war in Gaza and Iran, have led Israelis to adopt digital assets as a safe-haven, contributing to steady cryptocurrency growth in the country according to Chainalysis.
• ▪According to Chainalysis, Israel received an estimated $22 billion in onchain cryptocurrency value during the 12-month period ending June 2025.

6 sources