Discount Bank to Offer Bitcoin and Ether Trading Via App to Israeli Clients, With Closed-Loop System

Discount Bank is expected to launch a service enabling its adult individual clients in Israel to trade Bitcoin and Ether directly through the bank’s mobile application, with trading anticipated to commence on November 26, 2026.

According to the bank’s product description, the new offering integrates cryptocurrency trading into existing investment portfolios, allowing clients to manage digital assets alongside traditional securities. The bank stated that clients will not need to manage private keys or external exchange accounts, as assets will be held in a bank-managed wallet utilizing Fireblocks’ digital asset infrastructure. This approach aims to simplify cryptocurrency management, with capital gains and losses from crypto assets potentially being offset against other investments within the portfolio for tax purposes. Tax withholding will also be centralized within the existing bank account.

A significant operational constraint of the service is its closed-loop system, meaning users cannot transfer cryptocurrencies into or out of the bank’s platform. The bank stated it may evaluate enabling external transfers in the future based on regulation and business development.

For each buy or sell order, a transaction fee of 2% will apply. Custody management fees will be waived for the first six months post-launch. Thereafter, custody fees will be 0.25% per quarter. Trades will settle on a T+1 basis.

Several other financial institutions have introduced or are exploring similar cryptocurrency services, including Bank Leumi in Israel, KBC Bank in Belgium, Sparkassen in Germany, and Standard Chartered in the UAE. BNY Mellon in the United States has received regulatory approval for cryptocurrency asset custody.

It remains uncertain whether Discount Bank will support cryptocurrencies beyond Bitcoin and Ether in the future, or when external transfer functionality might be enabled. The bank has not formally approved the transfer of crypto assets to external addresses.

Why This Matters

The materials describe a narrow update: Discount Bank is set to launch a service allowing its Israeli adult individual clients to buy, hold, and sell Bitcoin and Ether directly through the bank’s app starting November 26th. Whether external transfer functionality will be enabled in the future.

Broader Context

Source materials place the factual news in this context: Similar services have been launched by other banks like Bank Leumi (Israel), KBC Bank (Belgium), Sparkassen (Germany), and Standard Chartered (UAE).