Israel Discount Bank will let its customers buy, hold and sell bitcoin directly through its mobile app starting November 26, the first time such a service will be offered in Israel’s banking system.
How the service works
Customers will be able to trade bitcoin and ether alongside their stocks and bonds, without opening an account on an external crypto exchange or managing a separate digital wallet.
The coins will be held in bank-provided wallets built on infrastructure from fintech company Fireblocks.
Clients will also be able to offset capital gains and losses from crypto against the rest of their investment portfolio for tax deduction at source.
Avi Levi, CEO of Discount Group, said:
“For the first time in the banking system, Discount Bank will allow trading in digital currencies directly from the bank account in a simple and secure manner, without the need for complex dedicated digital wallets. This is a first step toward establishing advanced technological infrastructure in the digital currency space and developing the bank’s capabilities in this area.”
Fees and eligibility
“For the first time in the banking system, Discount Bank will allow trading in digital currencies directly from the bank account in a simple and secure manner, without the need for complex dedicated digital wallets. This is a first step toward establishing advanced technological infrastructure in the digital currency space and developing the bank’s capabilities in this area.”
Fees and eligibility
According to the bank’s website, each purchase or sale carries a 2% commission, while custody fees are waived for six months from launch and then set at 0.25% per quarter.
The service is open only to private customers aged 18 and over who live in Israel and whose accounts are enabled for securities trading.
The bank warned that crypto trading carries an exceptional level of risk, high volatility and the risk of total loss of investment.
Leumi falls behind
Bank Leumi announced plans in March 2022 to offer bitcoin trading through Pepper Invest in partnership with Paxos, but that initiative never reached a full-scale launch.
In August, Leumi unveiled a new partnership with Galaxy Digital to offer trading through its Leumi Trade app, though the service is not expected to go live until early 2027, pending Bank of Israel approval.
Calcalist reported that a growing number of investors have bought exposure in recent years through funds that track the price of bitcoin and ether, or directly on foreign crypto exchanges.
