Share
Israel has approved its first shekel-pegged stablecoin, marking a shift in how the country is moving digital asset activity into a regulated framework. The Israel Capital Market Authority granted approval to Bits of Gold following a two-year pilot, allowing the firm to issue the BILS token under strict conditions.
The decision places Israel among a small group of jurisdictions testing regulated, local-currency stablecoins instead of relying solely on dollar-backed tokens.
Israeli crypto exchange Bits of Gold just received regulatory approval for BILS, the country's first shekel-pegged stablecoin.
It runs on Solana and follows a two-year pilot program overseen by Israel's Capital Market Authority. pic.twitter.com/5HkyOLPpz3
— Token Metrics (@tokenmetricsinc) April 27, 2026
The approval follows a two-year pilot in a regulatory sandbox, where authorities tested how a stablecoin could operate without exposing the broader financial system to risk.
The first Israeli Shekel-backed stablecoin, BILS, will launch using token extensions on Solana! 🙌@BitsofGold_LTD recently received approval from Israeli regulators to move forward with their pilot.
Learn more: https://t.co/mXD6csZadr https://t.co/ScSXaegvq0
— Solana (@solana) March 14, 2024
During this period, regulators reviewed custody of client funds, cybersecurity standards, operational continuity, and reporting obligations. The token is fully backed at a 1:1 ratio with the Israeli shekel, with reserve assets held in segregated accounts within Israel.
This structure reflects a cautious approach. Instead of allowing open issuance, the regulator has limited the rollout scope and placed the activity under ongoing supervision.
לראשונה, השקל מתחבר לרשת הבלוקצ'יין.
אנחנו מתרגשים על האישור שניתן לנו היום מרשות שוק ההון שאישרה את הנפקת הסטייבלקוין הראשון מסוגו בעולם שצמוד לשקל – BILS.
כעת, אפשר להחזיק שקל דיגיטלי בארנק פרטי, להעביר שקלים באופן מיידי בכל שעה, לסחור בנכסים דיגיטליים מול השקל 24/7. pic.twitter.com/0Z4hz7UAKG
— Bits of Gold (@BitsofGold_LTD) April 27, 2026
According to Bits of Gold CEO Youval Rouach, the token is designed to act as a direct link between the shekel and blockchain-based financial services.
The stablecoin is expected to support:
This positions BILS less as a speculative asset and more as a settlement tool. This reflects a broader shift where stablecoins are increasingly used for payments and settlement rather than trading.
The global stablecoin market exceeds $320 billion in capitalization, dominated by US dollar-pegged tokens like USDT. Israel’s move introduces a local currency alternative into a market still heavily reliant on the dollar.
The approval is part of a wider effort by Israel’s Finance Ministry and Tax Authority to define how digital assets operate within the regulated economy.
Authorities confirmed that a draft stablecoin law will be released for public consultation, signaling that this approval is an early step rather than a final framework.
This signals a shift in regulatory strategy. Instead of restricting crypto activity outright, Israel is testing controlled use cases and building rules around them.
Despite the milestone, the rollout remains limited in scope. The regulator has indicated that activity will expand gradually, contingent on compliance and system performance.
A structural challenge also looms. Dollar-backed stablecoins continue to dominate global liquidity, raising questions about whether a shekel-based token can gain traction without partnerships with major financial institutions and payment providers.
The gap between regulatory approval and real-world usage remains significant. Infrastructure is being tested, but scale is far from assured.
Israel’s approval signals intent, not completion – an early-stage framework in which regulation, rather than market demand, is driving how stablecoins enter the financial system.
Share
preferred on
