Israel Discount Bank to Launch Bitcoin and Ether Trading in App on Nov. 26

Eligible customers at Israel Discount Bank will be able to buy, hold and sell bitcoin and ether in the bank's mobile app starting Nov. 26, the lender announced on Wednesday. The move would put it ahead of larger competitor Bank Leumi, assuming the schedule holds.

The Tel Aviv-listed lender called the offering a first for the country's banking sector in a Nov. 11 statement. Customers can trade the two assets alongside stocks and bonds, with no need for an external exchange account or a separate digital wallet.

Only private clients can use the service, not business accounts. Eligible users must be Israeli residents aged 18 or over with an existing securities trading setup, and are subject to the bank's conditions.

According to Discount Group CEO Avi Levi, the offering represents a first in the banking sector. "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," he said in the statement, adding that the move is "a first step toward establishing advanced technological infrastructure in the digital currency space and developing the bank's capabilities in this area."

The rollout was headed by Elad Fisher, who leads the bank's financial markets division. The digital coins will be stored in wallets provided by the bank, which are built on Fireblocks's infrastructure.

JUST IN: $150 billion Israel Discount Bank will become the 1st bank in Israel to let customers buy, hold and sell Bitcoin

Adoption!

— Bitcoin Magazine (@BitcoinMagazine) November 11, 2026

Commission of 2% Set, Wallets Tied to the Bank

A 2% commission applies to trades made through the app, the bank's product page shows, with foreign-exchange conversion fees extra. Custody is free for the first six months from the Nov. 26 start date, after which a quarterly fee of 0.25% kicks in. The service operates Sunday through Friday, 9:00 a.m. to 11:00 p.m. local Israel time, handling only market orders. The minimum purchase is 0.01 of a coin. Assets show up instantly in the securities portfolio, with cash settlement the following business day in USD; conversion to shekels is done upon request only.

The setup is currently a closed loop. Users cannot transfer bitcoin or ether purchased via Discount to an external wallet, nor bring in coins from elsewhere, though the bank may review this policy later. Additionally, the bank highlights significant risk, high volatility and the potential for a total loss, stating the coins are not legal tender and do not carry the same safeguards as traditional securities.

One of the main draws of the offering is its tax framework. According to the bank, gains and losses on the coins can be automatically netted against the customer's overall investment portfolio for withholding tax purposes, with a 25% tax rate on profits. When sold, the proceeds go straight into the customer's bank account, sidestepping the source-of-funds checks that frequently accompany returns from crypto platforms.

Leumi Pledged First, but Targets 2027

Israel Discount Bank is not the first domestic lender to pledge bitcoin trading. Bank Leumi, Israel's biggest bank, first outlined a plan in March 2022 to offer bitcoin and ether via Pepper Invest with Paxos, though it never fully launched. Then in August, Leumi together with Galaxy Digital (GLXY) announced that customers of Leumi and Pepper could buy, hold and sell bitcoin, ether and Solana through the Leumi Trade app, with a rollout intended for early 2027.

That earlier press release had presented Leumi as the pioneer for such a service in Israel. But should Discount go live on Nov. 26, it will beat Leumi to the market, even if Leumi plans to add Solana, a token not offered at Discount's launch. Discount has said it might look into adding further assets down the line.

The Bank of Israel's Banking Supervision Department issued a circular on Oct. 7 updating Directive 411. This change, effective May 1, 2027, dictates that a bank cannot reject payment services purely because the money originates from virtual currency. While the revision does not give banks the green light to engage in crypto trading directly, it forms part of a wider initiative, initially proposed in a July draft, aimed at expanding how banks manage crypto-related payments.

The immediate tests are whether Discount meets the Nov. 26 rollout date, and whether clients will embrace the closed wallet structure and 2% fee for the sake of bank custody and automated tax withholding. Leumi, for its part, still has early 2027 as a target.