Key Highlights
- Israel approved its first shekel-pegged stablecoin for a limited rollout after a two-year pilot.
- Bits of Gold received the green light as a licensed virtual asset provider.
- The stablecoin will maintain a 1:1 peg with reserves held in segregated domestic accounts.
Israel has officially approved the issuance of its first stablecoin pegged to its national currency shekel, marking a significant step toward integrating blockchain-based payments into the country’s traditional financial system.
The approval was granted by the Israel Capital Market Insurance and Savings Authority to Bits of Gold, following a comprehensive review process and a dedicated pilot program that ran for nearly two years.
Authorities confirmed that the initial rollout of the stablecoin, dubbed BILS, will be limited in scope and conducted under highly controlled conditions.
1:1 shekel peg with local reserves
According to the regulator, the stablecoin will be pegged to the Israeli shekel at a 1:1 ratio, with reserve assets securely held within Israel in designated and segregated accounts.
The Authority emphasized that the issuance will operate under strict regulatory oversight, including requirements around technology risk management and cybersecurity, business continuity planning, and immediate disclosure obligations for material changes or exceptional events.
Officials described the approval as a complementary step to an upcoming comprehensive stablecoin legislative framework. A memorandum outlining the proposed Stablecoin Law is expected to be released for public consultation soon, aiming to formally standardize the sector.
Faster payments and financial innovation
The regulator highlighted the broader impact of the initiative, stating that the shekel-backed stablecoin is expected to facilitate blockchain-based money transfers, enable faster settlement between entities, and support the development of advanced financial services.
“This is good news for the financial market in Israel,” the Authority noted, adding that the move balances innovation with safeguards designed to maintain financial stability and protect the public.
The launch of BILS notably coincides with the Israeli shekel reaching a 30-year high against the U.S. dollar, trading at approximately 1 ILS to 0.34 USD.
The Israel Capital Market Insurance and Savings Authority restated its commitment to promoting technological innovation in a responsible and measured manner, stressing that further steps will be taken gradually as full regulatory clarity for stablecoins is established.
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