Discount Bank to Launch Direct Crypto Trading Via App, Ahead of Competitor
Translated & summarized from Calcalist by baba
Discount Bank will launch direct Bitcoin and Ethereum trading via its app on November 26, becoming the first Israeli bank to offer such a service. This move aims to capture crypto investment activity and precedes a similar offering from Bank Leumi, expected in 2027. The service will utilize Fireblocks for asset custody and allow for tax offset calculations, with initial promotions including free account management.
The story in 6 lines · by baba
- Discount Bank will enable direct Bitcoin and Ethereum trading via its app starting November 26.
- Discount Bank aims to be the first Israeli bank to offer direct digital currency trading.
- Bank Leumi's similar service is expected in early 2027, pending regulatory approval.
- The new service will allow trading directly from bank accounts, simplifying the process.
- Fireblocks will provide custody and management services for the digital assets.
- The bank will offer tax offset benefits and initial promotional fee waivers.
Discount Bank announced on Wednesday that it will begin allowing customers to trade Bitcoin and Ethereum directly through its mobile application starting November 26. This move positions Discount Bank to become the first bank in Israel to offer direct digital currency trading, aiming to attract investment activity currently conducted outside the traditional banking system.
While competitor Bank Leumi had previously announced plans for a similar service via its Leumi Trade app, that service is not expected to launch until early 2027, pending approval from the Bank of Israel. Discount Bank is capitalizing on this time difference to be the first to provide the service to its customers.
The new offering will enable customers to buy and sell digital currencies directly from their bank accounts, alongside traditional investments in stocks and bonds. Unlike trading on external crypto exchanges, customers will not need to open separate digital wallets or accounts with foreign trading platforms. The digital currencies will be held in the bank's wallets, utilizing the infrastructure of fintech company Fireblocks for custody and management of digital assets.
Discount Bank also highlighted the advantage of offsetting crypto profits and losses against other investments within a client's portfolio for tax withholding calculations. The bank will offer six months of free account management fees and attractive, though unspecified, trading commissions. Initially, the service will be available for Bitcoin and Ethereum trading to private customers aged 18 and above who have accounts linked to securities trading, subject to joining conditions. Bank Leumi reportedly plans to offer trading in Solana in addition to other cryptocurrencies.