Bank Leumi Partners with Galaxy Digital to Launch Bitcoin Trading for 2.5M Clients by 2027

Bank Leumi, the largest commercial bank in Israel, has announced a partnership with Galaxy Digital to offer Bitcoin, Ethereum, and Solana trading through its Leumi Trade platform and Pepper mobile app, set to launch in early 2027. This initiative will allow approximately 2.5 million retail clients to buy, hold, and sell digital assets alongside traditional financial products like stocks and bonds.

The bank's previous attempt to enter the crypto market in 2022 was halted due to a lack of regulatory approval from the Bank of Israel. However, the regulatory landscape has since improved, providing a clearer path for banks to offer digital asset services. The partnership with Galaxy Digital includes utilizing GK8's custody infrastructure, addressing security concerns associated with crypto asset management.

Bank Leumi's move is significant, as it represents a major step for traditional banking in Israel, where over 25% of the population has engaged with cryptocurrencies. The integration of crypto trading into an existing banking app could serve as a model for other banks in the region, provided they receive the necessary regulatory approvals.

As the launch date approaches, attention will be focused on the Bank of Israel's response, the fee structure for the new service, and whether other Israeli banks will follow suit with similar offerings.