REGULATION | Israel Approves Shekel-Pegged Stablecoin After Solana Pilot

Israel’s financial regulator has approved the launch of a stablecoin pegged to the national currency marking a step toward integrating digital assets into the country’s regulated financial system.

The Israel Capital Market Insurance and Savings Authority said it had granted approval for the “BILS” stablecoin, developed by local crypto firm, Bits of Gold, following a roughly two-year pilot conducted on the Solana blockchain.

According to the Israel Capital Market Insurance & Savings Authority:

“The offering will take place in a limited format and in a predetermined scope.”

The token will be fully backed by reserves held in segregated accounts within Israel, according to the regulator, with oversight aimed at ensuring compliance and financial stability.

The initiative forms part of broader efforts by Israel’s Finance Ministry and Tax Authority to bring crypto-related activity under clearer regulatory frameworks, including permitting certain stablecoin use cases.

According to the regulator:

• The currency is pegged in value to the shekel in a ratio of 1:1, with the reserve assets held in Israel in designated and separate accounts.

• The activity will be carried out under the Authority’s strict conditions, including technology risk management, information security, business continuity and ongoing reporting obligations.

• The move is a complementary step to the Memorandum of the Stablecoin Law, which will soon be distributed for public comments, with the aim of regulating the entire field.

“This is good news for the financial market in Israel.

The coin is expected to enable money transfers on the blockchain, fast accounting between entities, and the development of advanced services while maintaining financial stability and protecting the public.”

                – Israel Capital Market Insurance & Savings Authority

Bits of Gold said the shekel-linked stablecoin is designed to connect Israel’s currency to global digital asset markets, enabling real-time payments, on-chain trading and programmable financial services based on a regulated local unit.

Stablecoins, which are cryptocurrencies typically pegged to fiat currencies, have grown rapidly, though the market remains dominated by U.S. dollar-linked tokens.

Stay tuned to BitKE on crypto regulatory developments globally.

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