Israel Discount Bank to bring Bitcoin and Ether trading into its app - Crypto News
Israel Discount Bank will allow customers to buy, hold and sell Bitcoin and Ether through its mobile app starting November 26, with integrated tax handling.
The service will be available to eligible adult customers through Discount's existing banking app, bringing crypto purchases and sales into the same environment used for stocks and bonds. Customers won't need to open an external exchange account or manage a separate digital wallet.
Access will be limited to private customers aged 18 or older whose accounts are enabled for securities trading, subject to the bank's terms and enrollment agreement. Digital assets will be held in bank wallets supported by Fireblocks infrastructure, with sale proceeds credited directly to customer accounts.
Six-month fee waiver
Discount will waive account management fees for six months, though trading rates remain undisclosed. The bank described trading commissions as low but did not publish the rates in its announcement.
Customers would be able to trade from their accounts without the need for complex dedicated digital wallets.
Integrated tax handling
The tax service will allow crypto capital gains and losses to be offset against other investments in the customer's portfolio when tax is deducted at source. This contrasts with external platforms where investors must handle tax obligations independently.
Israeli investors have faced difficulties depositing proceeds from crypto activity into commercial bank accounts, with banks requiring evidence of fund sources to meet anti-money laundering rules. The Israel Tax Authority provides a specific route for individuals seeking to pay tax on crypto profits after Israeli commercial banks have refused relevant funds.
Competitive landscape
Bank Leumi announced a Galaxy trading partnership covering Bitcoin, Ether and Solana through Leumi Trade, expected to launch in early 2027. GalaxyOne Institutional will provide trading services while Galaxy's Custody Infrastructure platform supports asset custody.
Discount's scheduled launch would precede Leumi's service if it meets its announced schedule. Globes noted that Leumi had previously announced a Pepper Invest arrangement with Paxos in March 2022 that did not reach a full-scale launch.
Local provider Bits of Gold operates under financial services license 56716 issued by Israel's Capital Market, Insurance and Savings Authority. The company received approval for its BILS shekel stablecoin after a two-year Solana pilot, with reserve arrangements requiring designated, separate accounts in Israel.
Related
