Bank Leumi, Israel’s largest bank, is preparing to enter the retail crypto market through a partnership with Galaxy Digital. The bank plans to let customers buy, hold and sell Bitcoin, Ether and Solana directly through its Leumi Trade investment platform, with the service expected to launch in early 2027, subject to regulatory approval.
The planned offering will also extend to customers of Leumi’s digital banking arm, PEPPER. If approved, Leumi says it will become the first Israeli bank to provide direct digital asset trading to its customers through its own banking platform.
Key Takeaways
- Bank Leumi plans to offer Bitcoin, Ether and Solana trading through its Leumi Trade app in early 2027.
- PEPPER customers will also have access to the planned crypto service.
- Galaxy Digital will provide trading infrastructure through GalaxyOne Institutional.
- Galaxy’s custody infrastructure, formerly known as GK8, will support the security of digital assets.
- The launch follows earlier efforts by Israeli banks to enter the crypto market.
- The service remains subject to approval from the Bank of Israel.
Leumi Brings Crypto Trading Into Its Banking App
Under the agreement, customers will not need to move to a separate cryptocurrency exchange to trade the three assets. Instead, the service will be integrated into the existing Leumi Trade platform. GalaxyOne Institutional will provide the trading infrastructure, while Galaxy’s custody technology will support the bank’s digital asset operations. The arrangement is designed to give customers exposure to cryptocurrencies while keeping trading and custody within a banking environment.
Bank Leumi’s Head of Strategy, Maya Ravia, described the initiative as part of the bank’s broader innovation strategy.
“We believe that digital assets are gradually becoming an integral part of the global financial system.”
The initial asset selection includes Bitcoin, Ether and Solana. Bitcoin and Ether remain the two largest cryptocurrencies by market value, while Solana has attracted growing institutional interest and has become a significant part of the digital asset infrastructure offered by Galaxy.
Galaxy Provides the Trading and Custody Infrastructure
Rather than developing its entire crypto infrastructure internally, Leumi is relying on Galaxy Digital for the technology needed to operate the service.
GalaxyOne Institutional will handle trading and related services, while Galaxy’s custody infrastructure, previously known as GK8, will provide technology designed to secure digital assets. The partnership gives Galaxy another connection with the traditional financial sector as banks and asset managers increasingly look for regulated ways to provide cryptocurrency services.
Galaxy has also expanded its institutional digital asset operations through partnerships involving trading, custody and staking. Its work with Leumi therefore adds a major banking relationship to an existing push to provide infrastructure to financial institutions.
Israel’s Banks Move Closer to Crypto
Leumi’s announcement follows several years of regulatory uncertainty around cryptocurrency services offered by Israeli banks. The bank previously announced a partnership with Paxos in 2022 to allow customers to trade cryptocurrencies through PEPPER. That initiative did not proceed after regulators raised concerns about the lack of clear rules governing banks and customer crypto activity.
The regulatory environment has since developed further. The Bank of Israel has worked on rules concerning funds transferred from licensed crypto service providers, while Israel’s Capital Market Authority has established capital requirements for regulated crypto businesses.
The new framework could make it easier for established financial institutions to provide digital asset services while maintaining regulatory oversight.
Israel also has an established cryptocurrency user base. Chainalysis estimated that the country received approximately $22 billion in onchain crypto value between July 2024 and June 2025, highlighting the size of the market available to regulated financial providers.
A Potential Challenge for Local Crypto Exchanges
If the service receives approval and launches as planned, Leumi could gain an advantage from offering crypto trading through an established banking relationship.
Customers would be able to access Bitcoin, Ether and Solana alongside their existing financial products rather than opening accounts with external exchanges. The bank is also expected to provide a familiar custody structure, which could appeal to customers who are interested in cryptocurrency but reluctant to manage private keys themselves. The move could increase competition for Israeli crypto exchanges, particularly if other major banks follow Leumi into the market. For Galaxy, the partnership demonstrates another potential use for its institutional infrastructure. For Leumi, it represents a significant step into a market that Israeli banks have approached cautiously for years.
Conclusion
Bank Leumi’s planned crypto trading service marks a major step in the integration of digital assets into Israel’s traditional banking system. By combining Leumi’s customer network with Galaxy’s trading and custody infrastructure, the bank is positioning Bitcoin, Ether and Solana as products that can be accessed alongside conventional investments.
The early 2027 launch remains subject to regulatory approval, but if cleared, Leumi’s move could encourage other Israeli banks to develop competing cryptocurrency services and give digital assets a more established place within the country’s financial system.
