Bank Leumi Makes a Comeback: Bitcoin Trading Planned for 2027

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Israel’s banking giant, Bank Leumi, is making a significant return to the crypto space after halting its initial Bitcoin trading plans in 2022 due to regulatory concerns. This time, the bank aims to offer Bitcoin trading services to institutional clients starting in 2027, armed with stronger compliance measures and a strategic partnership with Galaxy Digital.
A Misstep That Taught Valuable Lessons
In 2022, Bank Leumi’s attempt to provide Bitcoin access to institutional clients was abruptly halted by the Bank of Israel, citing inadequate anti-money laundering (AML) safeguards. Fast forward two years, and the regulatory landscape appears more accommodating. While Israel’s government hasn’t embraced crypto with open arms, it has established a framework that fosters financial innovation without compromising oversight. Meanwhile, Bitcoin’s status as an asset class remains robust, even if the market hype has cooled compared to its peak years.
Galaxy Digital: A Trusted Partner in Crypto
The cornerstone of Leumi’s renewed effort is its collaboration with Galaxy Digital, a seasoned player in the crypto sector. Galaxy isn’t just bringing technical expertise; it’s also providing a highly secure custody solution (Custody Stack). For banks like Leumi, the biggest challenge isn’t the technology itself but ensuring customer funds are protected from hackers, internal failures, or regulatory pitfalls.
“With Galaxy Digital by our side, we can navigate the technical and regulatory hurdles more



effectively,” says a Leumi spokesperson. Indeed, without a reliable partner like Galaxy Digital, Leumi’s comeback would be far more difficult. Institutional clients demand security—and a single bank can’t guarantee that alone.
A Calculated Risk with a Clear Strategy
Despite careful preparation, the 2027 launch won’t be a cakewalk. Israel’s regulatory environment remains stringent, and international standards—such as FATF guidelines—demand strict compliance. Then there’s Bitcoin’s notorious volatility, which poses a major hurdle for conservative banks and their clients.
Yet Leumi appears determined. Beyond Bitcoin trading, the bank is already exploring additional crypto services like staking and DeFi integrations. Long-term, this could solidify Leumi’s position as an innovation leader in Israel’s financial sector. And who knows? Perhaps Israel could still emerge as a modest crypto hub, even as the government prioritizes its central bank digital currency (CBDC) project.
A Signal to the Industry?
If Leumi succeeds, the ripple effects could extend far beyond Israel’s borders. Other banks, such as Bank Hapoalim, are already watching closely. If an established institution like Leumi is taking Bitcoin seriously, it sends a clear message: Crypto is no longer a niche phenomenon but a permanent fixture in the financial system.
Will it work? Only time will tell. But one thing is certain: Bank Leumi is far better prepared this time than it was in 2022. And sometimes, success requires a second attempt.