Israel's Largest Bank Targets 2027 Crypto Launch With Galaxy Infrastructure

Woofun AI reports that Bank Leumi and Galaxy have finalized a strategic partnership to launch Leumi Trade, a digital asset service targeting an early 2027 debut. This collaborative effort extends to PEPPER, Bank Leumi's digital banking arm, establishing a unified access point for customers seeking regulated cryptocurrency exposure. The entire initiative remains contingent upon explicit approval from the Bank of Israel, which serves as the final regulatory gatekeeper for the bank's entry into direct digital-asset trading.

The technical architecture underpinning this service relies exclusively on Galaxy's institutional-grade infrastructure. GalaxyOne Institutional will manage all trading activities, ensuring that execution meets the rigorous standards required for banking partners. Simultaneously, Galaxy Custody Infrastructure, previously known as GK8, will provide the secure environment necessary to safeguard customer assets. This model is strictly custodial, meaning that private keys are managed by the infrastructure provider rather than the end-user. Consequently, customers will hold their Bitcoin, Ether, and Solana positions within the bank's ecosystem without the need to manage separate wallets or engage in complex key generation processes. Galaxy confirmed the specifics of this arrangement on August 14, following Bank Leumi's initial announcement on August 13, thereby solidifying the operational timeline for the project.

Woofun AI data shows, Structurally, this move addresses a significant gap in the Israeli financial landscape where digital asset adoption is already substantial. A survey conducted by Geocartography in January 2026, , revealed that 21% of Israeli adults currently hold cryptocurrency. These individuals predominantly utilize external exchanges and specialized crypto platforms for their transactions. By integrating trading directly into its banking app, Leumi aims to capture this existing user base, offering them the convenience of managing both traditional investments and digital assets under a single institutional roof. This approach eliminates the friction associated with transferring funds between traditional bank accounts and external exchanges, thereby reducing operational complexity for users who prefer to consolidate their financial activities within a trusted banking relationship.

Notably, this is not Bank Leumi's first attempt to enter the cryptocurrency market, though previous efforts have faced regulatory hurdles. In March 2022, the bank's digital arm PEPPER announced an agreement with Paxos to offer trading for Bitcoin and Ether through Pepper Invest. That earlier product design allowed customers to buy, hold, and sell assets without maintaining their own wallets, mirroring the current custodial approach.

However, that initiative failed to reach the market as announced, largely due to the stringent requirements for regulatory approval. The current plan represents a strategic pivot, replacing Paxos with Galaxy as the infrastructure provider and expanding the asset list to include Solana.

Furthermore, the service has been migrated from Pepper Invest to the broader Leumi Trade platform, signaling a more integrated approach to digital asset offerings within the bank's main application.

The successful execution of this plan would mark a pivotal milestone for the Israeli banking sector. If approved, Bank Leumi would become the first Israeli bank to offer direct digital-asset trading through its banking infrastructure, setting a precedent for traditional financial institutions in the region. The Bank of Israel remains the critical variable in this equation, as its approval is mandatory for the service to go live. Until such authorization is granted, the proposed launch date for early 2027 remains provisional. This development signifies a renewed commitment to digital asset integration, leveraging Galaxy's robust infrastructure to navigate the complex regulatory environment that stymied previous attempts in 2022.