Bank Leumi to Launch Israel's First Bank Crypto Trading in Early 2027
Partnering with Galaxy Digital, Bank Leumi will offer Bitcoin and Ethereum trading to 2.5 million customers.
1Bank Leumi's Crypto Move
Bank Leumi will offer Bitcoin, Ethereum, and Solana trading to 2.5 million retail customers starting in early 2027. This service will be the first digital asset trading offered by a bank in Israel. Customers will trade within a secure section of the Leumi Trade app, using Galaxy Digital's infrastructure and GK8's custody technology. The bank views this step as a key pillar of its innovation strategy.
2Regulatory Hurdles and Changes
In 2022, Bank Leumi partnered with Paxos for a similar service, but it was blocked by the Bank of Israel. In July 2025, the Bank of Israel removed the automatic delay on deposits from crypto transactions above 100,000 NIS. Additionally, the Capital Market Authority drafted a proposal allowing licensed companies to trade the top 50 digital assets, provided they are registered in recognized jurisdictions like the EU and New York.
3Galaxy Digital's Role
Galaxy Digital will provide the trading platform for Bank Leumi's crypto service. The company acquired GK8's custody technology during Celsius's bankruptcy proceedings. GK8 was a Tel Aviv-based custody firm bought by Celsius for $115 million. Galaxy took over the infrastructure, opening a Tel Aviv office and adding 40 staff. GK8 co-founder Lior Lamesh now serves as CEO of Galaxy Israel.
4Market Data and Potential
According to Chainalysis, Israel received around $22 billion in on-chain value in the 12 months leading to June 2025. This reflects the country's growing crypto market. Bank Leumi's move signals increasing interest in crypto assets among Israeli financial institutions. Galaxy Israel CEO Lior Lamesh emphasizes the future role of open, programmable financial systems.
5Customer Experience and Security
Bank Leumi's crypto trading service aims to provide customers with simple, secure, and regulated access. Transactions will occur in a secure section of the Leumi Trade app, backed by Galaxy's institutional infrastructure. Maya Ravia, Head of Strategy at Bank Leumi, highlights the service's importance in the bank's digital transformation. Customers will manage crypto assets alongside traditional banking services.
6Global Trends and Banks
Banks worldwide are increasingly offering crypto asset trading to customers. Bank Leumi's initiative reflects Israel's financial sector aligning with global trends. In the US and Europe, banks are expanding crypto services. Israel's regulatory flexibility is enabling such offerings. Bank Leumi aims to be a pioneer in this space.
7Custody Technology Background
The custody technology used by Galaxy Digital was acquired during GK8's bankruptcy. GK8, a Tel Aviv-based firm, provided high-security custody solutions. Celsius bought GK8 for $115 million in 2022, but Galaxy took over the technology after Celsius's collapse. GK8 co-founder Lior Lamesh now leads Galaxy Israel, managing this infrastructure.
8The Future of Finance and Impact
Bank Leumi's crypto trading service is seen as a milestone in Israel's financial innovation. Galaxy Israel CEO Lior Lamesh underscores the future role of open, programmable financial systems. This move may encourage other Israeli banks to offer similar services. The integration of crypto assets into traditional finance is becoming a global trend, and Bank Leumi aims to lead this shift.