Israel Discount Bank Becomes First in Country to Offer Bitcoin and Ethereum Trading - Coinpedia

The service will be available to eligible private customers aged 18 and above whose accounts are enabled for securities activity and meet the bank's terms. Users can trade digital assets directly from their bank accounts, with Bitcoin and Ethereum held through bank wallets using Fireblocks' digital asset infrastructure.

Tax Benefits for Traders

A key feature of the new service is the treatment of crypto taxes. Discount Bank announced that customers will be able to offset capital gains and losses from digital-asset activity against other investments in their portfolio for withholding-tax purposes.

This keeps the tax calculation within the banking and investment account, rather than leaving customers to handle the process separately. The bank will also waive account management fees for the first six months, though trading commissions are reported at 2% per purchase or sale.

Competitive Advantage

The launch could give Discount Bank an early lead as Israeli banks compete to attract customers interested in crypto. Bank Leumi announced a similar plan in August, allowing customers to trade Bitcoin, Ethereum and Solana through its Leumi Trade app.

However, Leumi's service is not expected to launch until early 2027, as the bank moves ahead with its partnership with Galaxy Digital. This is not Leumi's first attempt to enter crypto trading, as in 2022 it planned to launch a similar service with Paxos, but the Bank of Israel blocked the move.