Israel Approves First Shekel-Pegged Stablecoin Framework After Two-Year Regulatory Pilot
The Israel Capital
Market Authority has approved a framework for issuing a shekel-pegged digital
currency, BILS. The token will be issued by Bits of Gold, a licensed financial asset
service provider, under regulatory supervision, Y.Net reported.
Singapore
Summit: Meet the largest APAC brokers you know (and those you still don’t!).
BILS is intended for use in liquidity provision, foreign
exchange transactions against major stablecoins such as USDC, smart‑contract
execution, and global shekel transfers. Additionally, Bits of Gold plans to
deepen partnerships with financial institutions and payment providers to
integrate BILS into existing systems.
According to the official communication, the stablecoin
market now exceeds 320 billion dollars in market capitalization, with annual
transaction volumes of approximately 46 trillion dollars.
Stablecoins have also moved
from a crypto-native instrument to infrastructure used in payments and
settlement. Binance Research’s 2025 report puts market
capitalisation above $305 billion and daily transaction volumes at $3.54
trillion. It also highlights high circulation velocity and compares usage
levels with established global payment networks.
Amit Gal, Israel Capital Market Authority, Source: LinkedIn
The authority said the
move marks an early stage in a new regulatory phase for digital assets. The
activity will remain limited in scope at the start.
It said the decision
aligns with government policy on digital assets. It also comes ahead of a draft
law on stable digital coins, which will be published for public comment. The approval follows a
process lasting about two years. During this time, Bits of Gold ran a pilot to
test stablecoin issuance under controlled conditions.
Amit Gal, who is in
charge of the authority, said the move supports “technological innovation
alongside maintaining financial stability, protecting the public of customers
and reducing systemic risks.”
Israel Sandbox Tests Shekel Stablecoin
Yuval Rouach, Bits of Gold founder and CEO
The pilot was carried
out in a regulatory sandbox framework. It was designed to test financial
innovation under supervision while limiting risks to the system and the public.
The regulator reviewed
issuance, custody of client assets, risk management , business continuity,
cybersecurity, and compliance with regulatory standards. The currency will be
fully backed by the Israeli shekel. It will operate at a 1:1 ratio with reserve
assets.
Reserve assets will be
held in Israel in segregated accounts. Liquidity and redemption mechanisms will
be available at all times. The issuer must
maintain reporting obligations, including immediate disclosure of material
changes or exceptional events.
The Capital Market
Authority said it will continue supervising the company after approval, with
ongoing monitoring of compliance with regulatory conditions. Bits of Gold founder
and CEO Yuval Rouach described the token as “the bridge between the shekel and
the new global financial system.”
“The approval represents a milestone not only for our
company, but for the evolution of financial infrastructure. BILS creates a
direct bridge between the Israeli shekel and the global digital assets economy,
enabling real-time payments, on-chain trading and programmable financial
applications based on a regulated local currency.”
Bits of Gold has been operating since 2013 and is licensed
by the Capital Market Authority. It serves over 250,000 registered clients and
previously launched a crypto rewards credit card with MAX.
The Israel Capital
Market Authority has approved a framework for issuing a shekel-pegged digital
currency, BILS. The token will be issued by Bits of Gold, a licensed financial asset
service provider, under regulatory supervision, Y.Net reported.
Singapore
Summit: Meet the largest APAC brokers you know (and those you still don’t!).
BILS is intended for use in liquidity provision, foreign
exchange transactions against major stablecoins such as USDC, smart‑contract
execution, and global shekel transfers. Additionally, Bits of Gold plans to
deepen partnerships with financial institutions and payment providers to
integrate BILS into existing systems.
According to the official communication, the stablecoin
market now exceeds 320 billion dollars in market capitalization, with annual
transaction volumes of approximately 46 trillion dollars.
Stablecoins have also moved
from a crypto-native instrument to infrastructure used in payments and
settlement. Binance Research’s 2025 report puts market
capitalisation above $305 billion and daily transaction volumes at $3.54
trillion. It also highlights high circulation velocity and compares usage
levels with established global payment networks.
Amit Gal, Israel Capital Market Authority, Source: LinkedIn
The authority said the
move marks an early stage in a new regulatory phase for digital assets. The
activity will remain limited in scope at the start.
It said the decision
aligns with government policy on digital assets. It also comes ahead of a draft
law on stable digital coins, which will be published for public comment. The approval follows a
process lasting about two years. During this time, Bits of Gold ran a pilot to
test stablecoin issuance under controlled conditions.
Amit Gal, who is in
charge of the authority, said the move supports “technological innovation
alongside maintaining financial stability, protecting the public of customers
and reducing systemic risks.”
Israel Sandbox Tests Shekel Stablecoin
Yuval Rouach, Bits of Gold founder and CEO
The pilot was carried
out in a regulatory sandbox framework. It was designed to test financial
innovation under supervision while limiting risks to the system and the public.
The regulator reviewed
issuance, custody of client assets, risk management , business continuity,
cybersecurity, and compliance with regulatory standards. The currency will be
fully backed by the Israeli shekel. It will operate at a 1:1 ratio with reserve
assets.
Reserve assets will be
held in Israel in segregated accounts. Liquidity and redemption mechanisms will
be available at all times. The issuer must
maintain reporting obligations, including immediate disclosure of material
changes or exceptional events.
The Capital Market
Authority said it will continue supervising the company after approval, with
ongoing monitoring of compliance with regulatory conditions. Bits of Gold founder
and CEO Yuval Rouach described the token as “the bridge between the shekel and
the new global financial system.”
“The approval represents a milestone not only for our
company, but for the evolution of financial infrastructure. BILS creates a
direct bridge between the Israeli shekel and the global digital assets economy,
enabling real-time payments, on-chain trading and programmable financial
applications based on a regulated local currency.”
Bits of Gold has been operating since 2013 and is licensed
by the Capital Market Authority. It serves over 250,000 registered clients and
previously launched a crypto rewards credit card with MAX.
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