Israel Discount Bank Launches Bitcoin and Ethereum Trading

Discount Bank to Offer Direct Bitcoin and Ethereum Trading Via Mobile App

Israel Discount Bank, a financial institution with assets totaling $150 billion, is set to become the first bank in the country to enable direct trading of Bitcoin and Ethereum through its mobile application. Starting November 26, customers will be able to purchase, hold, and sell these cryptocurrencies without the need for external exchanges or separate digital wallets.

This move positions Discount Bank ahead of its competitor, Bank Leumi, which has indicated plans to introduce similar crypto trading services in early 2027.

The announcement, made on November 11, confirmed that Discount Bank’s new cryptocurrency trading service will become operational on November 26, marking a significant first for an Israeli bank offering in-app buying and selling of digital assets. Initially, the service will support Bitcoin and Ethereum.

Eligible private customers aged 18 and over can engage in trading these two cryptocurrencies directly from their existing bank accounts, provided these accounts are activated for securities transactions and meet the bank’s stipulated terms.

A key benefit for users is the elimination of the need to establish accounts with foreign crypto exchanges or manage separate digital wallets. Bitcoin and Ethereum will be securely held within bank-managed wallets, leveraging Fireblocks’ digital asset infrastructure. Funds generated from sales will be directly transferable back to the customer’s bank account.

Avi Levi, CEO of Discount Bank, described the launch as “a first step” in the bank’s strategy to develop its digital currency infrastructure.

The service also addresses a crucial aspect of cryptocurrency investment: tax implications. Discount Bank has stated that customers will be able to offset capital gains and losses from their digital asset activities against other investments within their portfolio for withholding tax purposes. This integrated approach simplifies tax calculations, keeping them within the banking and investment account framework rather than requiring customers to manage the process independently.

Discount Bank will be waiving account management fees for the initial six months of the service. However, trading commissions are set at 2% for each purchase or sale.

This initiative could provide Discount Bank with a significant early advantage as Israeli banks vie for customers interested in the cryptocurrency market.

Bank Leumi had previously announced a comparable plan in August, intending to allow its customers to trade Bitcoin, Ethereum, and Solana through its Leumi Trade app. However, that service is not anticipated to launch until early 2027, as Bank Leumi proceeds with its partnership with Galaxy Digital. This is not Bank Leumi’s first foray into crypto trading; a similar service planned with Paxos in 2022 was ultimately blocked by the Bank of Israel.