Bank Leumi, Israel's largest bank, has announced a new partnership with Galaxy Digital, which will enable customers to buy, store, and sell Bitcoin, Ethereum, and Solana directly within the Leumi Trade app starting in early 2027. This marks a second attempt following a setback in 2022, when regulators withheld their approval. Now, however, the rules have changed, and the door has opened.
In 2022, Pepper Invest had planned to launch trading through Paxos, but the deal stalled during the approval process with the Bank of Israel. At that time, banks automatically delayed crypto-related deposits, and licensed firms were only permitted to operate with a limited list of coins, lacking clear storage regulations. By the summer of 2026, the regulator had eliminated automatic delays, prohibited banks from refusing funds from licensed platforms, and introduced requirements for capital and client asset segregation. An August circular subsequently granted access to the top 50 cryptocurrencies by market capitalization.
Galaxy Digital serves as a proven partner, holding New York licenses, and its custodial solutions utilize air-gapped GK8 technology. Transactions are executed via the institutional GalaxyOne platform. For Leumi, which serves approximately 2.5 million retail customers, this presents an opportunity to integrate digital assets into its familiar banking interface without requiring a separate application.
Behind this apparent liberalization lies not a sudden affection for cryptocurrency, but rather a pragmatic calculation. Banks recognize how regulatory frameworks reduce money laundering and volatility risks for retail investors. At the same time, they aim to retain customers who already hold digital assets on external platforms. Integrating these assets into a single application simplifies the user experience and provides the bank with control over the transaction flow.
For the average depositor, this is more than just a new button in an app. It offers the chance to diversify savings within their regular bank, without needing to open an account on a third-party exchange. However, a key question remains: how resilient will these new rules prove to be if the market once again experiences sharp fluctuations? History has already demonstrated that regulatory concessions can be subject to review.
Leumi's decision signals that traditional finance is gradually integrating crypto into its infrastructure, rather than resisting it. For individuals managing personal finances, this prompts a reassessment of what proportion of their portfolio should be held in digital assets and through which channels. Crucially, it's important to remember that even within a bank, cryptocurrency remains a high-risk instrument.
