Bank Leumi Teams Up with Galaxy Digital to Offer Bitcoin, Ether and Solana to Local Clients

Israel's largest bank Bank Leumi will enable its customers to buy, hold, and sell Bitcoin (BTC), Ether (ETH) and Solana (SOL) through a partnership with Galaxy Digital.

A New Chapter in Digital Asset Strategy

Leumi plans to launch the service in early 2027 via its mobile banking arm Pepper. The bank will create a dedicated section within its investment app Leumi Trade, allowing users to manage crypto assets directly on the platform.

Operational Details of the Leumi‑Galaxy Alliance

■GalaxyOne Institutional will provide Leumi with trading and liquidity services.

■Galaxy's custody platform, formerly known as GK8, will handle asset security and storage.

■The partnership makes Leumi the first Israeli bank to offer digital‑asset trading to its clientele.

Potential Market and Competitive Impact

■Customer base: Leumi serves millions of retail and corporate clients, injecting fresh liquidity into the crypto market.

■Competitive edge: In a market where local banks have not yet embraced crypto, Leumi’s early adoption could swiftly capture market share.

■Regulation: The Israeli Securities Authority (ISA) permits the integration of banking and crypto services, setting a precedent for regional players.

Company Financials and Risk Assessment

■Galaxy Digital posted a $85 million net loss in Q2, largely due to falling digital‑asset prices.

■The crypto division generated $66 million in adjusted gross profit, a 34 % increase from the previous quarter.

■Galaxy Digital began trading on Nasdaq under GLXY in May 2025; its share price sits at $21.38, reflecting a 25 % decline over the past year.

Markets view the collaboration between a major bank and a crypto firm as a milestone in the integration of traditional financial infrastructure with digital assets. Leumi’s extensive client base combined with Galaxy’s institutional trading backbone could boost regional liquidity and spark new investor profiles by 2027. However, Galaxy’s still‑volatile balance sheet remains a risk factor that must be monitored for the long‑term sustainability of this venture.