Bank Leumi Puts Bitcoin and Ethereum Trading on the Table with Galaxy Digital
Israel's largest and oldest commercial bank, Bank Leumi, has partnered with Galaxy Digital Inc. to introduce cryptocurrency trading services within its banking platforms. This move would be a first for Israel if regulators approve it.
The proposed service will allow customers to buy, hold, and sell selected cryptocurrencies, including Bitcoin, Ethereum, and Solana, through the Leumi Trade investment app. The setup is designed to simplify the process of accessing cryptocurrency markets by eliminating the need for separate exchange accounts or personal wallets.
Galaxy Digital's institutional trading platform will supply the trading machinery behind the service, while its custody infrastructure, formerly known as GK8, will be used for asset protection and management. Leumi plans to handle tax reporting under Israeli Tax Authority rules.
The service is not a self-custody wallet, meaning customers will not hold their private keys. Instead, it works like a conventional brokerage account, where the institution holds securities on behalf of clients.
This move comes after Israel's banking supervisors advanced draft rules in mid-2026 that would treat some transfers from licensed virtual asset service providers as lower risk. The proposed framework includes capital requirements, customer asset separation, and cybersecurity rules.