Israel Approves Shekel Stablecoin BILS Launch

Israel's Capital Market, Insurance and Savings Authority has approved the launch of BILS, a stablecoin pegged 1:1 to the Israeli shekel and issued by licensed crypto firm Bits of Gold. The decision follows a two-year pilot program on the Solana blockchain and marks a key step in integrating regulated digital assets into the country's financial system.

The authority granted limited approval for BILS, which will operate under close supervision with reserves held in segregated accounts within Israel. These reserves ensure liquidity, redemption rights and compliance with standards on antimoney laundering, reporting and risk management. The stablecoin is designed for real-time payments, on-chain trading, programmable financial applications, liquidity provision and foreign exchange transactions against major stablecoins like USDC.

Bits of Gold, which has served over 250,000 clients since 2013, conducted the pilot in a regulatory sandbox to test issuance, custody, cybersecurity and business continuity. Authority official Amit Gal stated that the approval supports technological innovation while maintaining financial stability, protecting customers and reducing systemic risks. The...