The Israeli bank Bank Leumi has announced plans to launch trading services for Bitcoin, Ethereum, and Solana for retail customers in Israel via a partnership with Galaxy Digital, pending regulatory approval. The initiative, set for early 2027, would utilise GalaxyOne Institutional’s platform and custody infrastructure acquired from GK8, formerly owned by Celsius.
The partnership, announced on August 14, follows the rejection of a similar 2022 deal with Paxos by the Bank of Israel. Bank Leumi’s head of strategy, Maya Ravia, described the move as a “significant pillar of the bank’s innovation strategy,” citing growing demand for digital assets among Israeli investors.
The plan requires approval from the Bank of Israel, which recently removed automatic delays on crypto-related deposits above NIS 100,000. Chainalysis data shows $22 billion in on-chain value flowed to Israel between June 2024 and June 2025, reflecting rising interest in digital assets.
Galaxy Israel’s CEO, Lior Lamesh, emphasised the role of open, programmable financial infrastructure in shaping the future of finance. However, the initiative remains subject to regulatory scrutiny, with the Capital Market Authority proposing draft rules requiring a minimum $500 million market capitalisation for digital asset trading.
The partnership with Galaxy Digital follows the acquisition of GK8, which was purchased by Celsius before its bankruptcy. Galaxy’s custody infrastructure, now integrated into the plan, was reportedly valued at $115 million in the transaction.
The timeline for approval remains unclear, with the Bank of Israel yet to comment on the proposed service. The initiative marks a potential shift in Israel’s financial landscape, though regulatory hurdles and the evolving legal framework for digital assets remain key uncertainties.
Written by Rebecca Shaw
Industry Desk
