Bank Leumi Partners Galaxy for Bitcoin Trading, Reviving Stalled 2022 Plan
Israel's largest bank, Bank Leumi, is partnering with Galaxy Digital to launch cryptocurrency trading in early 2027, marking a second attempt after the Bank of Israel rejected a similar proposal in 2022. The partnership hinges on Galaxy's custody infrastructure and a softer regulatory environment.
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The Second Attempt
Bank Leumi is preparing to offer Bitcoin and cryptocurrency trading to customers in early 2027, according to statements from Galaxy Digital. The move represents a restart of a 2022 initiative that stalled after the Bank of Israel declined to approve the offering. The intervening years have brought shifts in regulatory appetite and technology maturity that the bank believes now make the venture viable.
Why Now
Bank Leumi is tapping Galaxy Digital to provide custody infrastructure and technical backing for the trading platform. Lior Lamesh, Galaxy Israel's representative, framed the partnership around open, programmable financial infrastructure as the future of banking. The regulatory environment has also softened since 2022, when the Bank of Israel blocked similar proposals from other institutions, reducing the approval risk for a restart.
What It Signals
The move marks one of the first cryptocurrency trading offerings from a major Israeli bank and signals growing institutional willingness to engage with digital assets after years of regulatory hesitation. If approval is granted, Bank Leumi's platform could accelerate adoption of crypto trading among retail and institutional customers in Israel.
Why It Matters
For Traders
Approval could add significant retail volume to Bitcoin markets from Israel; timing and custody details remain unannounced.
For Investors
A major bank's re-entry into crypto signals institutional momentum returning despite past regulatory setbacks.
For Builders
Galaxy's custody and trading stack becomes a model for bank partnerships; success could accelerate similar deals across other regulated markets.
This article is for information only and is not financial advice. Read the full disclaimer.
