Bank Leumi plans to open cryptocurrency trading to retail banking customers in early 2027, offering access to Bitcoin, Ether, Solana and other selected digital assets through its investment app. The service will also cover customers of PEPPER, Leumi’s mobile-focused digital banking arm, and would mark one of the most substantial planned entries into crypto services by a major Israeli retail lender.
Galaxy Digital will provide the institutional trading and custody infrastructure behind the planned service, according to Bank Leumi’s announcement. That arrangement would give the bank a way to route customer trades and safeguard the underlying assets without building all of the market-access and custody systems internally.
The planned launch comes after an earlier attempt to bring crypto trading to Leumi customers did not reach the market. In 2022, the bank announced a partnership with Paxos intended to offer cryptocurrency trading, but the service was never launched. The 2027 target gives the bank a longer runway to establish its product, operational controls and compliance framework before opening access to customers.
Trading service would reach Leumi and PEPPER customers
Leumi said the initial offering is expected to include BTC, ETH and SOL, alongside other cryptocurrencies that have yet to be identified. Bitcoin and Ether account for the two largest crypto assets by market capitalization, while Solana has become a prominent network for token trading, stablecoin transfers and consumer-facing blockchain applications.
The announcement did not detail expected fees, trading hours, withdrawal options or whether customers will be able to move purchased coins to private wallets. Those practical features will shape whether the product functions mainly as a bank-based investment account or as a fuller crypto service that lets users transfer assets across blockchain networks.
Using Galaxy Digital’s institutional infrastructure places the service within an increasingly familiar model for banks entering digital assets. Rather than directly operating trading desks and holding customer keys themselves, financial institutions have often turned to specialized providers for execution, liquidity access and custody technology.
For customers, bank distribution could remove a major barrier that has kept some retail users outside crypto markets: the need to open and fund an account with a separate digital-asset platform. Integrating trading into a banking or investment application could also make transaction reporting and portfolio monitoring more straightforward for users who already manage conventional investments through the same provider.
Israel’s onchain market has expanded
The planned rollout follows a period of growing crypto activity in Israel and across the Middle East and North Africa. Chainalysis estimated that Israel received approximately $22 billion in onchain cryptocurrency value during the 12 months ending in June 2025.
Across the MENA region, onchain crypto activity exceeded $500 billion over the same period, representing a 33% increase from the preceding 12 months, Chainalysis reported. The blockchain analytics firm said the region’s expansion was slower than growth recorded in some other developing markets, including Asia-Pacific and Latin America.
The figures point to a market that is active but has not yet reached the scale of the world’s largest crypto centers. A trading product from a domestic bank could channel part of that activity into regulated financial services, particularly among customers who prefer dealing with a familiar lender rather than using a dedicated crypto platform.
Bank participation also changes the competitive landscape for local providers. Crypto-native companies have traditionally competed on token selection, fast account onboarding and blockchain features. A major bank can compete differently, using an existing customer base, established payment rails and institutional compliance processes.
A second attempt with different infrastructure
Leumi’s abandoned Paxos plan is an important part of the new announcement. In 2022, banks in several markets were exploring retail crypto offerings as prices and trading volumes remained elevated. The subsequent market downturn, failures among major crypto businesses and intensified scrutiny of custody and anti-money-laundering systems made many financial institutions more cautious.
The new effort arrives with a later launch date and a different infrastructure partner. Galaxy Digital operates institutional digital-asset services, including trading and custody, and its role suggests Leumi is seeking a structure designed for bank-grade controls rather than a lightweight crypto add-on.
Leumi’s statement framed the planned service around providing customers with access under legal and operational safeguards. The bank has not yet published a detailed product specification, leaving open questions over asset eligibility, customer suitability checks, transaction limits and wallet-transfer policies.
Those details will determine the practical reach of the offering. A restricted product that permits only buying and selling within the app would appeal to customers seeking price exposure and simplified account management. Support for deposits, withdrawals and transfers would make the service more useful to customers who already use blockchain-based applications, but would also add operational and compliance complexity.
Early 2027 target leaves time for market conditions to change
The service is not expected to begin until early 2027, leaving more than a year for the bank, Galaxy Digital and relevant Israeli authorities to finalize the operating model. Crypto market prices, regulatory expectations and demand for specific tokens may look markedly different by the time the app goes live.
The delayed launch also means Leumi is not committing to a service during a short-lived market surge. By setting a future target, the bank can develop the offering around longer-term customer demand and risk controls rather than treating crypto trading as a rapid response to market sentiment.
If launched as planned, the service would give retail customers of Israel’s largest bank and its PEPPER digital unit a bank-integrated route into several leading cryptocurrencies. It would also test whether Israeli customers want crypto exposure delivered through a conventional financial institution after years in which access has largely depended on specialist platforms and self-custody tools.
As banks embrace BTC, ETH and SOL, learn the basics in our guide What is Cryptocurrency today.
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