Bank Leumi, Israel's largest financial institution, is preparing to launch cryptocurrency trading services for its customers, marking a renewed effort after regulatory hurdles derailed similar plans in 2022. The bank now aims to roll out the offering in early 2027.
## A Second Attempt After Regulatory Setbacks Leumi's first push into digital assets was blocked by the Bank of Israel, which took a cautious stance toward the sector at the time. That earlier initiative never made it past the country's central banking authority, leaving the lender's crypto ambitions on hold for years.
Now, a shift in the regulatory climate has opened the door for a fresh attempt. Israeli authorities have signaled a more accommodating approach to digital assets, giving Leumi the confidence to revisit a market it once found impassable.
What once died on the regulator's desk is now getting a fresh green light.
## Building on Institutional Infrastructure Central to the bank's renewed plan is a partnership with Galaxy, whose custody infrastructure is expected to underpin the trading service. Relying on an established institutional-grade custody stack helps address the security and compliance concerns that often complicate a traditional bank's move into crypto.
The involvement of a well-known digital asset firm reflects a broader trend of legacy financial institutions leaning on specialized crypto companies to handle the technical complexities of holding and managing customer assets.
Key elements of Leumi's renewed effort include:
- A softer regulatory posture from Israeli authorities
- Galaxy's custody technology powering the service
- A targeted launch window in early 2027
## What It Means for the Market If the rollout proceeds as planned, Leumi would become a notable example of a major national bank offering direct crypto trading to retail and institutional clients. The move could set a precedent for other Israeli banks weighing similar services.
The timeline, however, remains roughly a year out, leaving room for regulatory developments and market conditions to shape the final product before it reaches customers.