Israel Discount Bank to launch Bitcoin and Ether trading in app

What happened

Israel Discount Bank announced on Nov. 11 that it plans to offer Bitcoin and Ether trading through its existing mobile banking app from Nov. 26, according to reports from Crypto.news, Globes and The Jerusalem Post. The service would let eligible private customers buy, hold and sell both assets without opening an account at an external exchange or managing a separate digital wallet. Coinpedia characterized the plan as the first direct in-app crypto trading offering from an Israeli bank.

Access is limited to private customers aged 18 or older whose accounts are enabled for securities trading, subject to the bank's terms and an enrollment agreement. Discount said the assets would be held in bank wallets supported by Fireblocks infrastructure, and sale proceeds would go directly to the customer's bank account. Account management fees will be waived for six months.

The tax feature is integrated into the investment account. According to Globes, crypto capital gains and losses can be offset against other investments in the customer's portfolio when tax is deducted at source, unlike external platforms where investors handle tax obligations themselves. Elad Fisher, head of Discount's Financial Markets Division, led the initiative. CEO Avi Levi described the offering as an initial step toward building the bank's digital currency infrastructure. The bank warned that crypto trading carries exceptional risk, including high volatility and the possibility of losing the entire investment.

Why it matters

If Discount meets its schedule, it would launch before Bank Leumi's planned crypto service, expected in early 2027. Leumi announced a Galaxy partnership on Aug. 14 covering Bitcoin, Ether and Solana through Leumi Trade, with GalaxyOne Institutional providing trading and Galaxy custody infrastructure, formerly GK8, handling custody. Coinpedia said an early start could give Discount a lead in attracting crypto-interested bank customers.

The plan also tests how far crypto can be folded into familiar banking and investment infrastructure. Discount is placing trading alongside stocks and bonds and tying tax withholding to the portfolio, rather than leaving customers to handle it separately. Crypto.news noted that Israeli investors have struggled to deposit crypto proceeds into commercial bank accounts, where banks require evidence of source of funds under anti-money laundering rules.

What the data shows

Two assets are covered: Bitcoin and Ether. The stated start date is Nov. 26, and eligibility is restricted to adults with securities-enabled accounts. Discount will waive account management fees for six months. Trading commissions were not published in its announcement; Crypto.news said the bank described them as low without disclosing rates, while Coinpedia reported a 2% charge per purchase or sale. Coinpedia also described Discount as a $150 billion bank.

Background

Bank Leumi's Galaxy service is scheduled for early 2027 for Leumi and PEPPER customers. Leumi previously announced a Pepper Invest arrangement with Paxos in March 2022; Crypto.news said it did not reach a full-scale launch, while Coinpedia said the Bank of Israel blocked it. Separately, the Israel Tax Authority offers a route for individuals who want to pay tax on crypto profits after a commercial bank has refused the relevant funds, including by declining to open an account. Applicants must show lawful funds for the original purchase, no alternative funding source, a taxable-income calculation, evidence of the original funds, an ownership history and confirmation of the refusal. Companies cannot use the procedure. It was developed with the Bank of Israel and the Money Laundering Authority to allow tax funds into the authority's account at the central bank.

What is still unclear

Trading fees are the clearest unresolved point. The reports give different accounts: Crypto.news says rates were undisclosed and cites Globes calling commissions low, while Coinpedia reports 2% per transaction. The reports do not reconcile those versions. Discount's launch also depends on meeting the Nov. 26 date and on enrollment terms that were not detailed.

What to watch

Whether Discount opens on Nov. 26 as planned and how the tax-offset feature works in practice will be the first tests. Bank Leumi's Galaxy-backed service is expected in early 2027 for Leumi and PEPPER customers. Outside Israel, Deutsche Bank launched crypto custody on Nov. 11 for paying institutional and corporate customers in Europe, covering Bitcoin, Ether, USDC, EURC and EURAU with the bank managing private keys; retail customers were excluded initially, and the bank plans Asian expansion in 2027.

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