Shekel Meets Crypto as Israel Approves First Stablecoin Framework

Israel approves a shekel pegged stablecoin framework for Bits of Gold after a two year pilot under regulator supervision.

Israel has approved its first shekel pegged stablecoin framework after a two year pilot. The Israel Capital Market Authority gave licensed crypto firm Bits of Gold the green light.

The token will be backed by the Israeli shekel and issued under strict rules. The approval marks a new step for regulated digital assets in Israel.

It also comes before a draft stablecoin law is released for public comment.

Regulator Clears Shekel Backed Token

The Israel Capital Market Authority approved the framework for the stablecoin, known as BILS.

Bits of Gold will issue the token under the approved structure. The company is licensed by the authority and has operated since 2013.

The token will be backed 1:1 by the Israeli shekel. Its reserves will be kept in segregated accounts inside Israel.

The regulator said liquidity and redemption systems must be available at all times.

The issuer will also face regular reporting duties. It must report material events without delay. The authority said supervision will continue after approval.

According to Amit Gal, who heads the authority, the move supports “technological innovation alongside maintaining financial stability, protecting the public of customers and reducing systemic risks.”

Two Year Sandbox Tested Core Controls

The approval followed a two year regulatory sandbox process. The pilot tested stablecoin issuance in a controlled setting.

It also allowed the regulator to review risks before wider use. During the pilot, Bits of Gold tested custody, compliance, and risk management.

It also reviewed cybersecurity and business continuity systems. These areas were checked under regulatory supervision.

The activity will remain limited at the start. The authority said this approach helps manage risk while allowing market testing. The draft stablecoin law will later be opened for public comment.

Bits of Gold founder and CEO Yuval Rouach called the token “the bridge between the shekel and the new global financial system.”

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BILS Targets Payments and On Chain Use

BILS is planned for use in liquidity, foreign exchange, and smart contract activity. It may also support shekel transfers across borders.

The token could trade against major stablecoins, including USDC.

Rouach said BILS creates “a direct bridge between the Israeli shekel and the global digital assets economy.”

He added that it can support real time payments and programmable finance.

Bits of Gold also plans to work with financial firms and payment providers. The aim is to connect BILS with existing systems.

The company says it serves more than 250,000 registered clients.

The stablecoin market has grown beyond 320 billion dollars in market value, according to the official communication.

Annual transaction volume is near 46 trillion dollars. Binance Research’s 2025 report placed market value above 305 billion dollars.

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