Bank Leumi, Israel's largest bank, has announced a strategic partnership with Galaxy Digital and its custody subsidiary GK8 to launch cryptocurrency trading services for its customers. According to reports from PRNewswire, the collaboration will enable Bank Leumi customers to buy, hold and sell bitcoin, ether and solana through the bank's investment app starting from early 2027. This partnership positions Bank Leumi as the first Israeli bank to announce such a comprehensive digital asset trading service directly to its customers. As reported by Galaxy Digital, the service will be available to both Bank Leumi and its mobile banking unit, Pepper, customers through a dedicated, secured section of the Leumi Trade capital markets application. The bank's roughly 2.5 million retail clients would be able to buy, hold, and sell digital assets alongside stocks and bonds, all in one place. Maya Ravia, head of strategy at Bank Leumi, stated that the initiative would expand financial services available to customers and provide "simple, secure, and regulated access" to digital asset trading, emphasizing that digital assets are gradually becoming an integral part of the global financial system.
The cryptocurrency trading service will be delivered through Galaxy's GalaxyOne Institutional platform, which is designed specifically for banks and asset managers. As reported by PRNewswire, Bank Leumi has also signed an agreement to utilize Galaxy's custody infrastructure, formerly known as GK8, to support the digital asset offering. The service will be integrated into the bank's existing Leumi Trade app, making it accessible to both Bank Leumi and its mobile banking unit, Pepper, customers. According to Galaxy Digital, the platform is built with deep expertise and institutional-grade execution, providing one platform for trading and custody with onchain rails at its core. The initial offering will include bitcoin, ether and solana with trading taking place within a dedicated section of the bank's capital markets app. Leumi will handle custody through GK8's infrastructure and take responsibility for tax compliance on behalf of customers. Lior Lamesh, CEO of Galaxy Israel, described the company as building a single platform that links trading and custody for banks, stating that the future of finance will run on open, programmable rails and that banks moving first will define the era that follows.
The partnership represents a strategic move by Bank Leumi to embed cryptocurrency trading within its capital-markets application, betting that clients will prefer a regulated banking interface over standalone cryptocurrency exchanges. According to PRNewswire, this approach places Bank Leumi among a growing group of financial institutions bringing crypto access directly inside customer platforms. The collaboration provides Galaxy Digital with a banking partner in Israel, expanding its institutional client base in the region. As reported by Galaxy Digital, the digital assets market in Israel is growing rapidly, and the company is proud to provide the foundation of trust for the country's leading institutions. Keeping the service inside Leumi Trade may reduce the need for customers to open accounts with separate crypto exchanges, streamlining the user experience. More than 25% of Israel's population has engaged with cryptocurrencies, according to available reports, making this a significant market opportunity for the bank. Lior Lamesh emphasized that the arrangement will provide access through a regulated banking framework, while Galaxy will supply the systems needed to execute trades and support the underlying assets.
This announcement comes after Bank Leumi's failed 2022 attempt to launch Bitcoin and Ethereum trading through a partnership with Paxos, which was shelved when the Bank of Israel declined to grant regulatory approval. What has changed since then is Israel's regulatory environment, with the country making meaningful progress on its framework for virtual asset service providers, creating a clearer path for banks that want to offer digital asset services. The updated regulatory landscape is what makes this 2026 announcement feel more durable than its predecessor, though final sign-off from the Bank of Israel is still pending. Israel's regulatory environment has also seen relaxed deposit requirements for funds originating from digital assets, showcasing a more accommodating environment for banks to integrate crypto services. The structural architecture is clear: Leumi owns the client relationship, GK8 owns the security infrastructure, and Galaxy Digital provides the broader digital asset expertise tying it together.
The specific mechanics of the service, including fees, withdrawal options, and the granular details of how custody works in practice, have not been publicly disclosed yet. The structural architecture is clear: Leumi owns the client relationship, GK8 owns the security infrastructure, and Galaxy Digital provides the broader digital asset expertise tying it together. The Leumi model, combining an established custody partner with an existing retail app, offers a blueprint that competitors could replicate without building from zero. There is still a meaningful caveat sitting over all of this: regulatory approval. The Bank of Israel will need to formally bless the arrangement before a single client can execute a trade. What to watch between now and early 2027 includes the Bank of Israel's formal response, the fee structure Leumi chooses to publish, and whether any competing Israeli banks announce similar partnerships in the months that follow. The announcement did not disclose trading fees, minimum purchase amounts, or whether the bank will add more assets after launch, nor did it specify whether all customers will receive access at once or whether the service will begin with a phased rollout.
