Israel’s Bank Leumi is set to become the first banking institution in Israel to enable cryptocurrency trading for its clients, according to a Thursday Reuters report.
Formed in 1902, Bank Leumi is Israel’s oldest bank and one of the largest banking corporations in the Middle East.
Bank Leumi Prepares To Open Trading For Bitcoin And Ethereum
In the report, Bank Leumi’s digital platform Pepper Invest said it has partnered with blockchain firm Paxos to roll out a new cryptocurrency trading service. It’s worth mentioning that Paxos was allowed by the U.S Securities Exchange Commission (SEC) to launch a program to settle trades back in 2019. Since then, the network has attracted the attention of myriad big players from the legacy finance world.
The new crypto trading service will let Pepper Invest customers buy, hold and sell bitcoin and ethereum worth at least 50 shekels per transaction (approximately 15.49 USD).
Pepper Invest will collect tax in accordance with the guidelines of the Israeli Tax Authority in a bid to manage the tax complexities and make it easier for customers to trade cryptocurrencies. Moreover, users will be able to trade BTC and ETH without having to download a digital wallet.
Speaking about being the first banking institution in Israel to introduce a first-of-its-kind crypto trading service, Pepper Invest CEO Uri Natan posited:
“We are proud to be the first in the banking system in Israel, and one of the few in the world, to offer our customers to trade cryptocurrencies in a simple, safe and reliable way, without having to download a wallet, and without having to deal with the tax authorities.”
At present, Bank Leumi is awaiting regulatory approval and no launch date has yet been set.
Opening The Gates For Crypto Adoption In Israel
The news comes as more traditional finance players scramble for a piece of the cryptocurrency pie. Banking giants in the United States, including JPMorgan, Goldman Sachs, and Morgan Stanley have offered crypto-related products to their clients in recent months.
As ZyCrypto reported, the CEO of BlackRock Larry Fink predicted that the Ukraine-Russia war amid souring global economic conditions will drive further crypto adoption among nations.
Pepper Invest believes its new crypto trading service is a “significant innovation” that will help customers easily navigate crypto trading. That being said, the entrance of Bank Leumi will likely encourage more banks in Israel to explore options in the cryptocurrency world.