Israel Discount Bank announced it will launch bitcoin and ether trading for eligible customers on November 26 through its mobile app. The service represents the first offering of its kind in Israel's banking system, allowing customers to trade the two digital assets alongside stocks and bonds without opening accounts at external exchanges or managing separate digital wallets.
The service is available to private customers who are Israeli residents, at least 18 years old, and have existing securities trading accounts set up with the bank. Trading hours run Sunday through Friday from 9 a.m. to 11 p.m. Israel time, with only immediate orders permitted. Customers can purchase as little as 0.01 of a coin.
Fees and Features
The bank charges a 2% commission on purchases and sales, separate from any foreign-exchange conversion costs. Custody fees are waived for the first six months following the launch, then charged at 0.25% per quarter. Cash from sales settles the next business day in U.S. dollars, with conversion to shekels occurring only at customer request.
Bitcoin and ether holdings appear immediately in the customer's securities portfolio. The service is a closed system, meaning coins purchased through Discount cannot be transferred to external wallets, and holdings from outside cannot be transferred in, though the bank indicated it may revisit this policy.
Tax and Custody Advantages
A key feature of the offering is integrated tax treatment. Capital gains and losses on the coins offset automatically against the rest of the customer's investment portfolio, with taxes withheld at source at a 25% rate on profits. Proceeds from sales deposit directly into the customer's bank account without the additional verification procedures typical of crypto platforms.
Competition with Bank Leumi
Bank Leumi, Israel's largest lender, announced in August that it would offer bitcoin, ether, and Solana trading through the Leumi Trade app, with a launch expected in early 2027. If Discount Bank meets its November 26 date, it would reach the market first, though Leumi's offering will include Solana, which Discount is not launching initially.
The Bank of Israel's Banking Supervision Department amended Directive 411 in October to prohibit banks from refusing payment services solely because funds originate from virtual-currency activity, effective May 1, 2027. The amendment does not authorize crypto trading but represents part of a broader effort to expand how banks handle crypto-related payments.
