Bank Leumi to Offer Crypto Trading to Retail Clients

Bank Leumi, Israel's largest bank, has announced plans to become the first financial institution in the country to offer direct cryptocurrency trading to its retail customers. The service, set to launch in early 2027, will allow clients to buy, hold, and sell Bitcoin, Ether, and Solana through the bank's existing Leumi Trade app and the Pepper mobile banking platform.

The initiative represents a significant shift for Israel's traditional banking sector. Bank Leumi has partnered with Galaxy Digital, a global digital asset firm, to provide the necessary trading and custody infrastructure. Galaxy will operate through its GalaxyOne Institutional platform, while its custody subsidiary, formerly known as GK8, will secure the digital assets. This partnership addresses a key challenge for banks entering the crypto space: providing secure, regulated custody for client funds.

The move comes after a previous attempt by Bank Leumi in 2022 to launch crypto trading through a different partnership was shelved due to a lack of regulatory approval from the Bank of Israel. Officials indicated that the regulatory environment for virtual asset service providers in Israel has since evolved, creating...