Israel’s Oldest Bank Moves into Digital Assets
Bank Leumi, Israel’s largest and oldest commercial bank, announced on Friday, August 14, 2026, that it is preparing to offer bitcoin, ether, and solana trading through its banking platforms. The move, unveiled in partnership with Nasdaq-listed Galaxy Digital, marks a first for an Israeli bank, pending regulatory approval. The launch is targeted for early 2027, according to the announcement.
Galaxy Digital Partnership Provides Infrastructure
The collaboration with Galaxy Digital, led by Mike Novogratz, will provide the necessary infrastructure for Bank Leumi to offer direct crypto trading services. Galaxy Digital, a prominent crypto financial services firm, brings experience in custody, trading, and market making. The partnership positions Bank Leumi to leverage Galaxy’s established compliance and security frameworks, which are critical for regulatory approval in Israel.
Crypto Market Context: Bitcoin and Ether Prices
As of August 15, 2026, bitcoin is trading around $68,400, while ether is at $3,250, according to recent market data. The launch comes amid growing institutional adoption, with banks in Switzerland, Germany, and Singapore already offering similar services. Bank Leumi’s move signals a broader trend of traditional financial institutions embracing digital assets, despite ongoing regulatory uncertainties.
Regulatory Hurdles and Approval Timeline
Israeli regulators, including the Bank of Israel and the Securities Authority, have yet to approve the service. The bank’s announcement indicates a strategic push to be ready for the 2027 launch, but the final go-ahead depends on meeting stringent compliance requirements. If approved, Bank Leumi would become the first Israeli bank to offer crypto trading directly to its clients, potentially setting a precedent for other regional banks.
Client Demand and Institutional Interest
Bank Leumi’s decision is likely driven by increasing client demand for digital asset exposure. A 2026 survey by the Israeli Fintech Association found that 23% of Israeli adults have owned or traded cryptocurrencies in the past year. By integrating crypto trading into its platform, Bank Leumi aims to retain tech-savvy clients and attract new ones, competing with fintech startups and global exchanges.
Solana’s Role in the Offering
The inclusion of solana, a high-throughput blockchain, adds diversification beyond the two largest cryptocurrencies. Solana has seen significant developer activity and institutional interest, with its price at $145 as of mid-August 2026. Offering solana alongside bitcoin and ether allows Bank Leumi to cater to a broader range of risk appetites, though solana’s higher volatility may appeal to more speculative investors.
What to Watch: Regulatory Decision and Market Reaction
Investors should monitor the Israeli regulatory landscape in the coming months. A key indicator will be the Bank of Israel’s next policy statement, expected in Q4 2026, which may address digital asset guidelines. If approval is granted, the launch could trigger a wave of similar offerings from other regional banks, potentially boosting crypto adoption in the Middle East. Conversely, a prolonged regulatory delay could dampen momentum and allow competitors to move first.
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