Israel Discount Bank to Let Customers Trade Bitcoin in App Starting Nov. 26

Bitcoin Magazine

Israel Discount Bank to Let Customers Trade Bitcoin in App Starting Nov. 26

Israel Discount Bank said Wednesday that from Nov. 26 it will let eligible customers buy, hold and sell bitcoin and ether in the bank’s mobile app, a launch that would beat larger rival Bank Leumi if it stays on schedule.

The Tel Aviv-listed lender described the service as a first for Israel’s banking system in a Nov. 11 statement. Customers will be able to trade the two assets alongside stocks and bonds, without opening an account at an outside exchange or managing a separate digital wallet.

The offer is limited to private, not corporate, customers who are Israeli residents, 18 or older, and whose accounts are already set up for securities trading, subject to the bank’s terms.

“For the first time in the banking system, Discount Bank will allow trading in digital currencies directly from the bank account in a simple and secure manner, without the need for complex dedicated digital wallets,” Avi Levi, CEO of Discount Group, said in the statement. “This is a first step toward establishing advanced technological infrastructure in the digital currency space and developing the bank’s capabilities in this area.”

The rollout was led by Elad Fisher, head of the bank’s financial markets division. Coins will sit in bank-provided wallets built on infrastructure from Fireblocks.

A 2% commission and a wallet that does not leave the bank

The bank’s product page lists a 2% commission on purchases and sales in the app, not including any foreign-exchange conversion. Custody fees are waived for six months from the Nov. 26 launch and then run 0.25% a quarter. Trading is open Sunday through Friday from 9 a.m. to 11 p.m. Israel time, and only immediate orders are allowed. Customers can buy as little as 0.01 of a coin. Holdings appear in the securities portfolio at once, with cash settling the next business day in U.S. dollars; conversion into shekels happens only if the customer asks.

The service is a closed system for now. Bitcoin and ether bought through Discount cannot be sent to an outside wallet, and coins held elsewhere cannot be transferred in. The bank said it may revisit transfers later. It also warns of unusual risk, high volatility and the possibility of a total loss, and says the coins are not legal tender and lack the same protections as securities.