Israel Discount Bank opens in-app Bitcoin trading on November 26

The service will operate within the bank’s existing platform, eliminating the need for customers to open accounts with external crypto exchanges or manage separate digital wallets.

This rollout could make Discount Bank the first commercial bank in Israel to offer direct crypto buying, selling, and holding directly through a banking app.

The bank is offering a six-month waiver of account management fees and says trading commissions will be low, although it has yet to publish the exact charges.

Custody and access

Customer assets will be stored in bank-provided wallets powered by Fireblocks, which supplies digital asset custody, transfer and management technology to financial institutions.

Access will be restricted to private customers aged 18 and above who have accounts enabled for securities trading and meet the bank’s terms and conditions.

Tax and competition

The service will additionally allow customers to offset capital gains and losses from digital asset transactions against gains and losses elsewhere in their investment portfolios for withholding tax purposes.

This offers an alternative to external trading platforms, where investors generally need to handle their tax obligations separately with the Israel Tax Authority.

Discount Bank is moving ahead of Bank Leumi, which has also been preparing to introduce crypto trading. Leumi announced a partnership with Paxos in March 2022 to offer Bitcoin and Ethereum through its Pepper Invest platform, but the initiative did not progress to a full-scale launch.

In August, the bank unveiled a new agreement with Galaxy Digital covering Bitcoin, Ethereum and Solana trading through the Leumi Trade app. Leumi’s service is expected to go live in early 2027.