Israel Approves First Shekel-Pegged Stablecoin Framework After Two-Year Regulatory Pilot

The Israel Capital
Market Authority has approved a framework for issuing a shekel-pegged digital
currency, BILS. The token will be issued by Bits of Gold, a licensed financial asset
service provider, under regulatory supervision, Y.Net reported.

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BILS is intended for use in liquidity provision, foreign
exchange transactions against major stablecoins such as USDC, smart‑contract
execution, and global shekel transfers. Additionally, Bits of Gold plans to
deepen partnerships with financial institutions and payment providers to
integrate BILS into existing systems.

According to the official communication, the stablecoin
market now exceeds 320 billion dollars in market capitalization, with annual
transaction volumes of approximately 46 trillion dollars.

Stablecoins have also moved
from a crypto-native instrument to infrastructure used in payments and
settlement. Binance Research’s 2025 report puts market
capitalisation above $305 billion and daily transaction volumes at $3.54
trillion. It also highlights high circulation velocity and compares usage
levels with established global payment networks.

The authority said the
move marks an early stage in a new regulatory phase for digital assets. The
activity will remain limited in scope at the start.

It said the decision
aligns with government policy on digital assets. It also comes ahead of a draft
law on stable digital coins, which will be published for public comment. The approval follows a
process lasting about two years. During this time, Bits of Gold ran a pilot to
test stablecoin issuance under controlled conditions.

Amit Gal, who is in
charge of the authority, said the move supports “technological innovation
alongside maintaining financial stability, protecting the public of customers
and reducing systemic risks.”

Israel Sandbox Tests Shekel Stablecoin

The pilot was carried
out in a regulatory sandbox framework. It was designed to test financial
innovation under supervision while limiting risks to the system and the public.

The regulator reviewed
issuance, custody of client assets, risk management
Risk Management

One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class,

One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class,
Read this Term, business continuity,
cybersecurity, and compliance with regulatory standards. The currency will be
fully backed by the Israeli shekel. It will operate at a 1:1 ratio with reserve
assets.