Bank Leumi, Israel's largest bank, is once again taking on the challenge of offering cryptocurrency trading services, including Bitcoin. Having previously pursued a related service that never made it to an actual launch, this renewed attempt is being seen as an example showing that traditional finance's adoption of cryptocurrency is not a one-off event, but rather a process that is repeatedly adjusted in line with regulatory and infrastructure changes.

Kaan Kaya of the CoinMarketCap community recently reported in a post that Bank Leumi is preparing to re-enter the provision of Bitcoin trading services that had previously been suspended.

■ Partnership with Galaxy Digital… Bitcoin, Ethereum, and Solana Trading on the Leumi Trade App

According to the report, Bank Leumi plans to partner with Galaxy Digital to provide digital asset trading services to its customers. Leumi and PEPPER customers in the mobile digital banking segment will be able to buy, hold, and sell select cryptocurrencies including Bitcoin, Ethereum, and Solana through the Leumi Trade app. The service launch is targeted for early 2027.

■ 2022 Paxos Attempt Fell Through… This Is the Second Try

Notable in this plan is that it marks Leumi's second attempt. In 2022, Leumi partnered with Paxos to pursue Bitcoin and Ethereum trading services, but the service never actually launched. The plan at the time was reportedly halted after failing to secure the necessary regulatory approvals.

■ Changed Trading and Custody Infrastructure… Division of Roles with a Specialized Firm

This time, the trading and custody infrastructure has also changed. Galaxy Digital will provide trading infrastructure through GalaxyOne Institutional, which targets institutional investors and financial institutions, while the custody side will leverage Galaxy's digital asset storage technology. Rather than building all cryptocurrency systems in-house, the traditional bank is sharing roles with a specialized infrastructure company.

■ Banks' Gradual Entry into Cryptocurrency

For this reason, the move goes beyond simply meaning that one bank is handling Bitcoin. It demonstrates that banks' entry into cryptocurrency is proceeding in stages as regulatory environments, custody systems, and customer asset protection frameworks are put in place.

In particular, the fact that a financial institution that once pursued and then suspended a service is re-entering the market symbolically shows that the integration of cryptocurrency into traditional financial markets does not proceed in a straight line. Financial institutions may choose to test services, suspend them, or restructure and re-enter while reviewing regulation, internal controls, and custody stability.

■ First Direct Trading by an Israeli Bank… Launch Timing May Vary

With this service, Bank Leumi is expected to become the first bank in Israel to directly offer digital asset trading services to customers. However, the actual service launch may change depending on the relevant approval procedures and system development.

Sources include the CoinMarketCap community post by Kaan Kaya, announcements from Bank Leumi and Galaxy Digital, and reports from overseas cryptocurrency media.

[※ This article was written for the purpose of providing information on the cryptocurrency market and the financial industry, and does not recommend the purchase or sale of any specific cryptocurrency or guarantee investment returns. The service launch schedule and regulatory approvals mentioned in the article may change depending on future circumstances. Cryptocurrencies including Bitcoin may carry high price volatility and institutional uncertainty, so investment decisions and responsibilities rest with the investor. This article was written with AI assistance.]