Israel's Largest Bank is Adopting Crypto Trading

Bank Leumi and Galaxy Digital Team Up on Crypto

Bank Leumi, Israel's largest bank, has partnered with @Galaxyhq to offer native digital asset trading to its customers, in what will be a historic first for the country's banking sector. Through the partnership, Bank Leumi will become the first bank in Israel to offer digital asset trading services to its customers.

Customers of Leumi and PEPPER, the bank's mobile digital banking arm, will be able to buy, hold, and sell selected digital assets, including $BTC, $ETH, and $SOL, within the Leumi Trade capital markets application. Trading will take place in a dedicated, secured section of the app, with the service expected to become available to customers in early 2027.

The Infrastructure Behind the Deal

The partnership relies on two core components from Galaxy's institutional stack. For trade execution, GalaxyOne is a unified crypto platform offering all the tools needed to trade, finance, store, and manage digital assets efficiently. On the custody side, GK8 is a leading technology provider for institutions looking to custody their digital assets with the highest possible security, using patented technology to safely store cryptocurrencies and execute blockchain transactions without connecting to the internet.

This is not the first time Leumi has attempted to enter the crypto space. In 2022, the bank tried to launch Bitcoin and Ethereum trading through a partnership with Paxos, only to shelve the whole project when the Bank of Israel declined to grant regulatory approval. Israel has since made meaningful progress on its framework for virtual asset service providers, creating a clearer path for banks that want to offer digital asset services.

Despite the progress, a key condition remains outstanding. The Bank of Israel will need to formally approve the arrangement before a single client can execute a trade. If cleared, the deal positions Leumi as a template for how traditional banks can integrate crypto without building proprietary infrastructure from scratch.

Sources:
PR Newswire: Bank Leumi Partners with Galaxy (Official Press Release)
Crypto Briefing: Leumi Bank to Offer Bitcoin Trading for 2.5M Clients in 2027