Discount Bank Launches Direct Crypto Trading for Israeli Customers

Discount Bank is set to launch cryptocurrency trading services through its mobile app starting November 26, allowing customers to buy, hold, and sell Bitcoin and Ethereum alongside traditional investments like stocks and bonds. This new feature will enable transactions with digital currencies directly from a bank account, eliminating the need for separate crypto exchange accounts or personal digital wallets. The move is significant for the Israeli banking sector, which has historically seen digital currency markets dominated by specialized firms, often creating difficulties for investors transferring funds and facing anti-money laundering checks. Discount Bank's service aims to simplify this by allowing proceeds from crypto sales to be deposited directly into bank accounts. Additionally, clients will be able to consolidate crypto profits and losses with other investment portfolio results for tax calculation purposes, a process that previously required individual management and interaction with the Israel Tax Authority. The bank will offer the first six months of account service free and describes its trading commissions as "low," though specific rates are not yet public. For digital asset storage, Discount Bank will utilize the infrastructure of Fireblocks, a company specializing in secure digital asset management for financial institutions, with the bank providing the wallets themselves. The service is available to private customers over 18 who meet the bank's conditions and have accounts eligible for securities trading. While Discount Bank is launching this service, Bank Leumi had previously announced plans in March 2022 to offer Bitcoin and Ethereum trading via its Pepper Invest platform, a project that was not fully realized. Bank Leumi later announced a new partnership with Galaxy Digital in August, planning to offer Bitcoin, Ethereum, and Solana trading through its Leumi Trade app, with a launch expected in early 2027. If Discount Bank meets its timeline, it will precede Bank Leumi's offering. Avi Levi, Head of Discount Group, described the initiative as a foundational step for developing digital currency operations, emphasizing the simplicity and security of trading directly from a bank account. The bank, however, cautioned that cryptocurrency trading remains a high-risk activity, citing the volatility of digital asset prices as a primary danger.