The Capital Market Authority has approved the first distribution of a shekel-backed digital currency issued by a licensed company, marking a first-of-its-kind step in the local financial market.
The stablecoin, which will be pegged to the shekel, will be issued by Bits of Gold, a licensed financial asset service provider. The approval is subject to close supervision and strict conditions meant to protect public funds and ensure operational stability. At this stage, the issuance will take place in a limited format and at a predetermined scale.
The new activity will be carried out in line with the government’s decision on advancing regulation of digital asset activity. It will allow operations to begin immediately, alongside the expected publication of a draft bill on stablecoin issuance for public comment.
The approval was granted after a two-year review process, during which Bits of Gold conducted a dedicated pilot to test its ability to issue and operate stablecoins safely, responsibly and under supervision.
The pilot examined the company’s capabilities in issuing and managing a stablecoin, safeguarding customer assets, managing custody risks, daily operations, business continuity, technology risks, information security, cyber protection and compliance with strict regulatory standards.
The pilot was conducted in a regulatory “sandbox,” a controlled framework that allows innovative financial products and services to be tested under supervision while reducing risks to the public and the financial system.
The currency is expected to allow money transfers over blockchain infrastructure, trading in digital assets, fast and efficient settlement between financial institutions and the development of additional blockchain-based financial services.
Regulators emphasized a full 1:1 backing ratio between the issued coins and reserve assets, with the reserve assets held in Israel in dedicated and separate accounts. The company will also be required to maintain liquidity, offer redemption mechanisms at all times and report immediately to the authority on any unusual incident or material change in activity.
The Capital Market Authority said it will continue to monitor Bits of Gold’s activity and supervise its compliance with the requirements and commitments set in the approval.
“This is a significant step in developing a modern, innovative and supervised financial market that meets international standards,” said Amit Gal, head of the Capital Market Authority. “It is important for Israel’s continued integration into global financial systems.”
Yuval Roash, founder and CEO of Bits of Gold, called the approval “a historic milestone for the Israeli economy,” saying the BILS coin would serve as “a bridge between the shekel and the new global financial system.”
First published: 22:47, 04.27.26