Israel Discount Bank will let customers buy, hold and sell bitcoin and ether starting Nov. 26 through its mobile app. The Tel Aviv-listed lender calls the service a first for Israel's banking system.
Eligible customers must be private account holders, Israeli residents aged 18 or older, and already set up for securities trading. Holdings will appear directly in the securities portfolio alongside stocks and bonds. The bank charges a 2% commission on purchases and sales, plus 0.25% per quarter in custody fees after a waived six-month period. Trading runs Sunday through Friday from 9 a.m. to 11 p.m. Israel time, with minimum purchases of 0.01 coins allowed.
Coins sit in bank-provided wallets built on Fireblocks infrastructure. The system is closed for now. Bitcoin and ether bought through Discount cannot be sent to outside wallets, and external coins cannot be transferred in, though the bank said it may revisit transfers later.
The tax benefit differentiates the offering. Capital gains and losses on the coins can offset automatically against the customer's full investment portfolio for tax withheld at 25% on profits. Sale proceeds land directly in the bank account without source-of-funds questionnaires typically required by crypto platforms.
Bank Leumi, Israel's largest lender, announced plans in August to offer bitcoin, ether and Solana through the Leumi Trade app in early 2027, partnering with Galaxy Digital. If Discount launches on Nov. 26, it would reach the market first, though Leumi plans to include Solana, which Discount is not offering at launch.
In October, the Bank of Israel's Banking Supervision Department amended Directive 411 to prohibit banks from refusing payment services solely because funds come from virtual-currency activity. The change takes effect May 1, 2027. The amendment does not authorize crypto trading but is part of efforts to widen how banks handle crypto-related payments.